Retirement News : Seniors : Pawlenty, seniors call for nursing home reform

Pawlenty, seniors call for nursing home reform

Date Added: 22-04-2005

ST. PAUL - Calling for systemwide reform, Gov. Tim Pawlenty said Wednesday that Minnesota's nursing home network is badly antiquated.

"It's a 1940s-styled one-size-fits-all, two people to a room, heavily regulated industry, and the lifestyles and nature of senior citizens have changed," Pawlenty said. "The reimbursement and regulatory framework that we have in the nursing home industry is 30 years out of date."

Meanwhile, dozens of Northland senior citizens, including more than 100 from Duluth, lobbied lawmakers on the issue.

Getting more money for and improving the quality of long-term health care is a top priority for AARP Minnesota, Duluth's Grace Miller said.

Miller, a state leadership volunteer for AARP, said pay increases for health-care workers also are important.

But for two years, Minnesota's nursing homes have endured a freeze in the Medicaid money they get from the state, sending many to the brink of financial disaster. Most have reduced employee health benefits, flat-lined pay, reduced staff hours or laid off workers, said Barbara Averill, director of communications for the Minnesota Health & Housing Alliance, a statewide coalition of nonprofit long-term care facilities.

"It's not just that (Medicaid reimbursement) rates were frozen, but some expenses have gone up dramatically," Averill said. "Facilities are employing a number of tactics to try and stay afloat."

Averill said a survey of 275 Minnesota nursing homes compiled in March showed:

• 78 percent reduced health-care benefits.

• 61 percent froze wages.

• 53 percent reduced staff hours.

• 21 percent let staff go.

Both bodies of the Legislature are increasing reimbursement rates in their budget proposals pending in St. Paul, House and Senate leaders said.

Both bodies are pondering a 2 percent increase, or $88 million more statewide for 2005 and 2006. The House earmarks its increase for worker pay. Averill said nursing homes had asked the Legislature for a three percent increase, or about $110 million. ``Two percent doesn't get us out of the woods, but it's critical we get some rate adjustment this year,'' she said.

Pawlenty agrees the rate increases are necessary, but the long-term fix is a shift toward a more market-driven system, he said.

``What we have, in part, is a need for more resources to fund the current model, but we also need to change the current model so it is prepared for the future -- and it is not,'' Pawlenty said. More options for seniors to have home health care and assisted-living will be needed as people live longer, healthier lives, he said. State and county governments also need to better match the supply and demand of nursing home beds, Pawlenty said. While some facilities are full or overflowing, others have beds empty, which drives efficiencies down and costs up, he said.

``The dollars that are used to help people stay out of nursing homes are more effective than those spent in nursing homes,'' said Hubert ``Skip'' Humphrey, AARP Minnesota president.

Rep. Tom Huntley, DFL-Duluth, agreed but said getting more people to purchase long-term care insurance is needed if a full-blown nursing home crisis is to be avoided in the future.

``It's getting close to a crisis now,'' Huntley said. ``The only thing that's helping the thing is a lousy economy because people are willing to work as nurses aides for $9 an hour.''

Other Northland lawmakers said senior citizens deserve better treatment from society than they are getting.

``What's the matter with a society that can't take care of its senior citizens?'' said Rep. Tom Rukavina, DFL-Virginia.

``It's time to take care of those who took care of us in the past,'' added Rep. Tony Sertich, DFL-Chisholm.

For More Information:

http://www.duluthsuperior.com/mld/duluthsuperior/news/local/11449796.htm