Nursing Home Moratorium Exception Frequently Asked Questions
Minnesota Statutes, section 144.073 defines the competitive moratorium exceptions process authorized under Minnesota Statutes, section 144A.071, subdivision 4a(c) and implemented in Minnesota Rules, parts 4655.1070 to 4655.1098. We have distilled some common questions and issues for you here.
- What is the required construction substantial completion date (or certificate of occupancy) for a project that is awarded monies from the 2023 exception process?
Commence construction within 18 months.
- If an owner elects to decline the monies awarded for one of the projects, how long does the owner have to make that decision without penalties?
The owner has 18 months to commence construction, see 144A.071, subdivision 1a, paragraph (d)
- How recent should facility appraisals be for the applications? These are the appraisals that would be included for cost justification.
Applicants are required to provide an estimated value for the entire facility after completion of the project. There is not an appraisal requirement for the application. The estimated appraisal value is an important limiting factor in the final reimbursement for an approved project. Supporting documentation is requested to ensure the applicant has made reasonable assumptions about value but not as a requirement that an actual appraisal be completed.
- Should cost estimates reflect expected inflation?
No. Costs for either property or changes in operating costs should be projected in terms of current dollars, irrespective of projected inflation.
- If a facility has more or less Medicaid (MA) residents, and therefore more or less MA funding, how will that affect its final ranking? Is there an advantage to facilities with low MA proportions?
The impact on MA cost is one criterion for evaluating proposals. However, the proposals will all have to be evaluated by the other criteria as well. Therefore, even though the low MA cost of a proposal is an advantage, it does not by itself guarantee selection, nor does high MA cost guarantee rejection.
- How many proposals can be funded?
This cannot be determined in advance. The number eventually selected will depend on the characteristics and quality of the proposals received.
Last Updated: 07/21/2024