1.1                          A bill for an act 
  1.2             relating to human services; modifying the procedure 
  1.3             for counting savings under nursing facility closure 
  1.4             plans; amending Minnesota Statutes 2000, section 
  1.5             256B.436, subdivision 6. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 256B.436, 
  1.8   subdivision 6, is amended to read: 
  1.9      Subd. 6.  [COST SAVINGS OF CLOSURE.] For purposes of this 
  1.10  section, the calculation of medical assistance cost savings from 
  1.11  the closure of a nursing facility designated for closure under a 
  1.12  closure plan shall be according to the following criteria: 
  1.13     (a) The projected medical assistance savings of the closure 
  1.14  of a facility shall be the aggregate medical assistance payments 
  1.15  to the facility for the most recently completed state fiscal 
  1.16  year prior to submission of the proposal, as reflected in the 
  1.17  number of resident days of care for each resident class provided 
  1.18  by the facility in that fiscal year, multiplied by the payment 
  1.19  rate for each resident class. 
  1.20     (b) If one or more facilities designated for closure in an 
  1.21  approved closure plan are not able to be closed for any reason, 
  1.22  or projection of savings for that closure are otherwise 
  1.23  prohibited under this section, the projected medical assistance 
  1.24  savings from that closure may not be offset against the medical 
  1.25  assistance costs of special rate adjustments under the plan.  In 
  2.1   that event, the applicant must notify the commissioner in 
  2.2   writing and the applicant must either amend its proposal by 
  2.3   reducing the special rate adjustment to reduce the medical 
  2.4   assistance cost of the plan by at least the amount of the 
  2.5   medical assistance savings that were projected from the closure 
  2.6   of that facility or withdraw the plan. 
  2.7      (c) No medical assistance savings shall be projected from 
  2.8   closure of a nursing facility that is designated for closure 
  2.9   under a closure plan, if the facility is:  (1)  subject to 
  2.10  adverse licensure action under section 144A.11; or (2) located 
  2.11  in a county with a ratio of nursing facility beds to county 
  2.12  residents age 85 and over that is in the lowest quartile of all 
  2.13  counties in the state, at the time the proposal is submitted or 
  2.14  at the commencement of closure. 
  2.15     (d) Medical assistance savings under paragraph (a) shall be 
  2.16  recognized for purposes of this section beginning the first day 
  2.17  of the month following the month of completion of closure for 
  2.18  all facilities designated for closure under the plan, or all 
  2.19  facilities designated for closure under that phase for a phased 
  2.20  plan. 
  2.21     Sec. 2.  [EFFECTIVE DATE.] 
  2.22     Section 1 is effective the day following final enactment.