Legislators hear plea to save Ely nursing home; bill laid over for review

Boundary Waters Care Center administrator Adam Muslowski testified that the Ely skilled nursing facility, licensed for 42 beds, faces revenue declines and infrastructure costs that threaten its ability to operate. Representative Schraamer moved to lay House File 1553 over for possible inclusion in the omnibus bill, and the committee laid the bill over.

Muslowski said the facility lost about $125,000 in revenue after the 2024 legislative session, has relied on a critical access nursing home funding designation that averaged about $400,000 per year (designation expires June 30 with reapplication uncertainty), and faces potential cost increases from proposed nursing home wage floor changes: facility‑specific projections showed a potential $200,000 to $400,000 impact depending on union wage scales. He also cited a $355,000 quote to replace aging water mains and said transportation costs for residents traveling two hours to Duluth can exceed $1,000 per round trip. Muslowski said Medicaid application processing delays of up to six months create cash‑flow problems when residents’ coverage is delayed.

Members thanked the witnesses and noted the broader challenge of sustaining rural long‑term care providers. Representative Cara and others said highlighting rural facilities and local solutions during committee hearings was valuable. No appropriation was adopted at the hearing; House File 1553 was laid over for possible inclusion.