Don Heinzman
ECM Editorial Contributor

Nursing homes in Minnesota are in a vice slowly being squeezed by actions of the Minnesota Legislature and the costs of caring for the elderly.

It is the State Legislature that sets the rates for nursing home care in Minnesota. For the second consecutive year, the Legislature has kept the rates the same. The result is nursing home operators do not have money to pay for increased costs of staff, health insurance and maintenance.

Unlike other businesses, nursing home revenues are controlled by the state.

In those areas where there are waiting lists for nursing home rooms, those nursing homes cannot expand because the state has clamped a moratorium on such expansions.

In the 2003 session, the Legislature did pass a one-time grant of $1.6 million to cover increased cost of liability insurance. Through its Medicaid system, the state also supplements costs for those who are unable to pay the rates.

The outcome of frozen rates in Minnesota is closing of some nursing homes, including three in Minneapolis.

Some are just hanging on and trying to eliminate deficits.

One business practice will not help the situation. Nursing Home managers realize that short-term stays, those financed through Medicare, are more desirable because Medicare pays a higher rate than state-financed medical assistance. That grows the list of elderly who need longer term care.

Most nursing homes in communities are asking for private and public donations when every other non-profit agency is looking for funds. Fund-raising has become more difficult.

Meanwhile, demographers are predicting the highest percentage of population growth will be over the age of 85.

The bottom line is that waiting lists are growing, and those who need nursing home care are forced to shop outside their local communities.

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