NURSING FACILITY GRANT OR LOAN FUND ANNUAL REPORTS

Section 3 of Senate Bill No. 2168, a copy of which is attached as Appendix A, provides that the Department of Human Services provide reports to the Governor and the Legislative Council on or before August 31 of each year concerning grants awarded or loans approved for alternative nursing facility programs pursuant to provisions of the bill. Each report is to include the number of applicants and approved applicants, an overview of the grants awarded or loans approved, and reports on the cost of each project funded by a grant or loan and annual cost reports received from recipients of grants or loans.

The bill establishes a North Dakota health care trust fund to be used for making grants or loans to organizations for providing alternative nursing facility care. Moneys are generated to this fund as a result of the Department of Human Services making government nursing facility funding pool payments to the two governmental nursing facilities in the state--one located at McVille and the other at Dunseith. These payments are made based on the average cost of Medicaid rates as compared to Medicare rates for all nursing care facilities in the state multiplied by the total of all resident days of all nursing homes for Medicaid patients. The payments are expected to total $12,183,210 for the 1999-2001 biennium, of which $3,618,391 is from the general fund and $8,564,819 is federal funds (the general fund moneys are later returned to the general fund). The payments are made to the two governmental nursing facilities and subsequently returned to the state, less a $10,000 transaction fee retained by each of the two governmental nursing facilities. Once returned to the state, the general fund share is returned to the general fund and the balance is deposited in the health care trust fund.

The health care trust fund is anticipated to have $8,715,279 available during the 1999-2001 biennium, including $190,460 of estimated interest earnings. The moneys in the trust fund can be used for nursing alternative loans or grants as determined by the Department of Human Services. The loans or grants are for capital or one-time expenditures to assist a facility in converting to an alternative care facility. The department's share of a project's cost is limited to $1 million or 80 percent of the project cost, whichever is less. Of the estimated $8,715,279 of funding available in the trust fund during the 1999-2001 biennium, $4,262,410 is appropriated in Senate Bill No. 2012 for service payments for elderly and disabled (SPED) and the remaining $4,452,869 will be available for loans or grants during this biennium.

Please refer to Appendix B for a flow chart prepared by the Department of Human Services showing the funding transfers under the program.

COMMITTEE ACTION PLAN

The committee may wish to carry out this responsibility as follows:

1. Receive reports on this grant and loan program from the Department of Human Services and on the department's recommendation regarding continuing the programs.
2. Receive testimony from interested persons regarding this grant and loan program.
3. Consider making recommendations and draft legislation, if necessary, to implement any committee recommendations.

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