Retirement News : Seniors : Granholm focuses jobs pitch on nursing homes

Granholm focuses jobs pitch on nursing homes

Date Added: 06-04-2005

LANSING, Mich. (AP) -- Nursing homes that make renovations to improve residents' living conditions would get extra Medicaid money under a jobs-related plan detailed Tuesday by Gov. Jennifer Granholm.

Granholm said the plan could provide up to 5,000 jobs statewide -- mostly construction-related -- in the next three years.

Up to 75 nursing homes would receive an extra $5 per eligible resident each day in Medicaid reimbursement if they make the renovations.

"This is an opportunity to put people to work," Granholm said. "We want to make sure these are great places to work in, but also great places to live in."

The goal is to renovate older nursing homes with private rooms, spacious community areas and other improvements for residents. The average Michigan nursing home is 30 years old.

It is part of a jobs package Granholm first discussed broadly in her State of the State address in February.

Overall, Granholm says her Jobs Today Initiative could provide tens of thousands of jobs in the next three years. The initiative would include road and bridge construction, school and university building improvements, environmental cleanup and other projects.

The plan comes as Michigan struggles with the nation's highest unemployment rate -- 7.5 percent in February.

The Democratic governor's jobs proposals have been met with skepticism by Republicans. They say her plan focuses on temporary projects that don't address the state's underlying economic problems.

"These are not real solutions," said Nate Bailey, a spokesman for the Michigan Republican Party. "It shows Jennifer Granholm has no idea how to curb the state's job loss and improve the economy."

A nonprofit group called the Michigan Association of Homes and Services for the Aging embraced Granholm's proposal Tuesday.

"Michigan's seniors deserve respect, understanding and compassion," MAHSA board chair Melanie Roenigk said. "They deserve the chance to age in the least restrictive environment with grace and dignity."

The Health Care Association of Michigan, which represents for-profit nursing homes, said the plan could motivate some owners but may not provide enough financial incentive to help others. The extra Medicaid reimbursement likely would not cover all renovation expenses.

The average renovation likely would cost between $75,000 and $85,000 per bed, according to the Michigan Department of Community Health.

The state would offset the higher Medicaid reimbursement rate through other savings related to nursing homes, Department of Community Health Director Janet Olszewski said, making the plan revenue neutral.

"We have consistently in the past few years seen a reduction in the amount of nursing home days we pay for," Olszewski said. "We expect that trend to continue."

For More Information: http://www.freep.com/news/statewire/sw113993_20050405.htm