1.1                          A bill for an act 
  1.2             relating to medical assistance; authorizing a pilot 
  1.3             project to downsize two intermediate care facilities 
  1.4             in Wabasha county; authorizing alternative services. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [DOWNSIZING PILOT PROJECT.] 
  1.7      (a) The commissioner of human services shall establish a 
  1.8   pilot project in Wabasha county to downsize two existing 
  1.9   eight-bed intermediate care facilities for persons with mental 
  1.10  retardation or related conditions owned by a single entity to 
  1.11  six beds each and develop alternative services for up to four 
  1.12  persons utilizing home and community-based services.  The 
  1.13  project must be approved by the commissioner according to 
  1.14  Minnesota Statutes, section 252.28, include criteria for 
  1.15  selecting individuals for alternative services and use a request 
  1.16  for proposal process in selecting the vendors for alternative 
  1.17  services.  The project must include: 
  1.18     (1) alternative services for residents being relocated; 
  1.19     (2) timelines for resident relocation and decertification 
  1.20  of beds; and 
  1.21     (3) adjustment of the operating cost rate of the two 
  1.22  facilities under Minnesota Rules, part 9553.0075, as necessary 
  1.23  to implement the project. 
  1.24     (b) Each facility's aggregate investment-per-bed limit in 
  1.25  effect before downsizing must be the facility's 
  2.1   investment-per-bed limit after downsizing.  Each facility's 
  2.2   total revenues after downsizing must not increase as a result of 
  2.3   the downsizing project.  Each facility's total revenues before 
  2.4   downsizing are determined by multiplying the payment rate in 
  2.5   effect the day before the downsizing is effective by the number 
  2.6   of full occupancy resident days for the reporting year preceding 
  2.7   the downsizing project.  Upon settle-up of each facility's 
  2.8   costs, the total annual revenues after downsizing shall be 
  2.9   adjusted to account for inflation using the Consumer Price 
  2.10  Index-All Items, United States city average, (CPI-U).