Senators hear providers urge $100 million one-time nursing-home add-on (SF855); committee lays bill over

Senate File 855, presented on May 20 to the Senate Human Services Committee, would provide a one-time funding add-on for nursing facilities estimated by the sponsor to cost about $100 million. Proponents — including administrators and provider coalitions — urged the panel to approve additional one-time aid to support operations, pay increases and avoid closures.

Sen. Mark Abeler, the bill sponsor, told the committee that prior one-time funding in 2023 of $300 million helped stabilize many facilities and that another targeted infusion would act as ‘‘oxygen’’ for systems that remain financially fragile. Erin Hubert of the Long Term Care Imperative said survey data showed 59 percent of providers used the previous one-time funds to cover operating deficits and 50 percent used funds to increase wages even though a multi-month gap remained between payment and reimbursement. Kyle Berndt testified that 42 percent of facilities expected negative financial performance in 2025 and described the contribution of prior one-time funds to short-term stabilization.

Proponents said the one-time aid should not be characterized as a ‘‘band-aid’’ but as a necessary step to prevent closures while longer-term rate reforms proceed. Committee members asked for follow-up data and clarified that the measure had been laid over for possible inclusion in an omnibus bill; no committee vote on final passage was taken.

Ending note

Senate File 855 was laid over for possible inclusion in an omnibus bill and the committee asked providers to submit additional financial details that describe the projected use and timing of the requested one-time funds.