2023 Session

Budget Amendments - HB1400 (Member Request)

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Chief Patron: Sickles
Minimum Occupancy in Nursing Capital Rate Calculation

Item 304 #32h

Item 304 #32h

First Year - FY2023 Second Year - FY2024
Health and Human Resources
Department of Medical Assistance Services FY2023 $0 FY2024 $5,371,094 GF
FY2023 $0 FY2024 $5,929,430 NGF

Page 355, line 40, strike "$22,919,178,986" and insert "$22,930,479,510".

Page 384, after line 31, insert:

"YYYY. Effective July 1, 2023, the department shall modify the fair rental value capital rate component for nursing facilities to eliminate the minimum occupancy assumption. The department shall have the authority to implement these reimbursement changes prior to the completion of any regulatory process to effect such changes. To the extent federal approval requires alternative approaches to achieve the same general results, the department shall have the authority to follow the federal guidance."


(This amendment eliminates the minimum occupancy adjustment for nursing facility capital rates. Currently, if occupancy is below 88 percent, the Department of Medical Assistance Services sets occupancy at 88 percent (artificially increasing the number of days). This reduces the per diem payment by distributing costs across a higher number of days but paying for the lower number of days. Exacerbated by COVID occupancy declines, the impact from this outdated requirement artificially removes much-needed capital funds.)