Governor Signs Supplemental Directing More Than $150 Million to Long-Term Care (SNF/AL)

Today, Feb. 16, Governor Whitmer signed House Bill 5523, a supplemental bill passed by the legislature last week directing American Rescue Plan Act funding to various healthcare entities. Included in the legislation are a number of initiatives that in total directed an estimated $170 million to Michigan nursing facilities, homes for the aged, and assisted living facilities. Brief summaries of the funding programs are detailed below. Please note that while the bill does include boilerplate language giving some guidance on the programs, HCAM/MCAL will engage with the Michigan Department of Health and Human Services (MDHHS) to work through the details. It is the association’s goal to have further clarity on all of these items as soon as possible.

Workforce Retention, Recruitment, and Training

The bill includes a total of $300 million for the purpose of recruitment, retention, and training of health care employees. Such eligible expenses may include, but are not limited to, cash recruitment bonuses, student loan payment assistance, cash retention bonuses, tuition assistance, and other forms of training programming. The maximum amount facilities can use for cash bonuses for recruitment is 25% of funding received, and not more than 20% can be used for retention.

$75 million of the total funds will be directed to skilled nursing facilities and federally qualified health centers (FQHCs). Based on total employees, it is estimated that nursing facilities will receive the bulk of this funding. HCAM will work with MDHHS on the allocation and other details of this program and provide updates when further information is received.

AFC/HFA Bed Grants

The bill allocates $70 million to establish a grant program of $700/bed for adult foster care facilities, homes for the aged (both licensed and exempt), and nonlicensed residential settings for older adults and individuals with disabilities. MDHHS will establish an application form for the grant, and facilities must apply within 90 days of the effective date of the act – likely by early May.

SNF Infection Control Grants

The bill creates an infection control grant in the amount of $29 million, directed specifically to skilled nursing facilities and running through September 30, 2026. The infection control grants can be used for projects including, but not limited to, improving indoor air quality and HVAC systems, creating negative air pressure rooms, creating isolation areas, purchasing/installing technologies, such as UV lights, to reduce the spread of infectious diseases. There is a limit of $500,000 per facility. HCAM will work with MDHHS on the details of this program and provide updates when further information is received.

Private Room Conversion Grants

The bill provides $10 million for a pilot program for facilities to convert multi-resident rooms to private rooms. Priority is given to those rooms with more than 2 residents. Facilities must match the cost of the conversion at 50%. Grants will be issued through MDHHS – HCAM will work with the department on the grant application process and other details.

OSHA Respiratory Protection Standards

$5 million is directed to nursing facilities and assisted living facilities to assist in complying with OSHA respiratory protection standards. The association will work with MDHHS to finalize details of the grant program.

You may find the bill HERE.