TUE AM News: 41% of state nursing facilities meet proposed staffing standards; Baldwin urging approval of state’s tech hub application

June 4, 2024

— Just 41% of nursing facilities in Wisconsin currently meet proposed federal staffing requirements, according to a recent Kaiser Family Foundation study.

While the recently released rules from the Centers for Medicare and Medicaid Services won’t take effect immediately, the KFF report shows most states — including Wisconsin — fall well short of the proposed targets.

Under the new requirements, nursing homes getting federal funding through Medicare and Medicaid will need to have 3.48 hours per resident per day of total staffing, including at least 0.55 hours per resident per day for registered nurses and 2.45 hours per resident per day for nurses aides.

In Wisconsin, 131 out of 318 or 41% of facilities meet all three of those requirements, the KFF report shows. While 88% of facilities meet the RN requirement, only 42% meet the requirement for nurse aides and 69% meet the overall requirement.

The rule also requires nursing facilities to have an RN on duty at all times, but the report didn’t include that in the analysis, report authors noted. About 80% of nursing facilities are estimated by CMS to already meet this requirement, the report shows. And eight facilities in Wisconsin didn’t report usable staffing data and weren’t included in the report’s totals.

Since CMS announced the proposed rule in April, the agency has gotten nearly 50,000 comments both in support and against the changes. While leaders of the nursing home industry have slammed them as unrealistic and overly simple, some resident advocacy groups argue the minimum staffing standards are too low and should be increased.

Wisconsin is among the 17 states with between 25% and 49% of nursing facilities meeting the rule’s requirements, while 28 other states fall under 25% on this metric. Three states and the District of Columbia fall between 50% and 75%, and only two states, North Dakota and Alaska, are above 75%.

Only Alaska had all of the nursing homes included in the report already staffed to the minimum standard, though with just 16 reporting facilities its total number is much lower than most other states.

KFF notes most facilities will have several years to meet the new requirements. The requirement for meeting 3.48 overall hours per resident per day takes effect in 2026 for urban facilities and 2027 for rural facilities, while the RN and nurse aide requirements take effect in 2027 for urban sites and 2029 for rural ones.

Also, facilities will be able to apply for temporary exemptions from part or all of the rules if they meet various conditions, and KFF says 25% of all 15,000 nursing homes in the country could qualify according to federal estimates.

CMS will be publishing more information on how nursing home compliance will be assessed ahead of these implementation deadlines.

“Forthcoming decisions about enforcement of the new staffing requirements and the ease with which nursing homes are able to receive hardship exemptions may impact the extent to which the final rule has its desired effect on the quality of care for nursing home residents,” report authors wrote.

See the full report.

— U.S. Sen. Tammy Baldwin is urging the Biden Administration to fund Wisconsin’s biohealth tech hub application after recently making a “final pitch” to U.S. Secretary of Commerce Gina Raimondo on the proposal.

The Madison Dem yesterday announced she met privately with Raimondo to make the case for Wisconsin being selected for up to $75 million in federal dollars, funding efforts to boost the state’s personalized medicine and biohealth sectors.

“Wisconsin is a state of innovators and go-getters,” she said in a statement. “We have workers who can compete with anyone in the world, a cutting-edge private sector, and endless potential – which is why we are the perfect place for a Tech Hub.”

Wisconsin’s consortium was designated as an official tech hub in October 2023, receiving a $350,000 grant planning grant to develop its plans for advancing this effort. Earlier this year, the group submitted its application for the implementation funding, with grant announcements expected “in the coming months,” according to Baldwin’s office.

The state is now competing with dozens of other tech hub designees for funding from the U.S. Economic Development Administration’s Regional Technology and Innovation Hubs program, which was created under the CHIPS and Science Act. The EDA plans to fund between three and eight projects with $40 million to $75 million, the release shows.

Baldwin argues funding Wisconsin’s coalition will grow the state economy and create good paying jobs while advancing the field of personalized medicine, which seeks to match health care treatment to patients’ specific needs.

The Wisconsin Biohealth Tech Hub coalition in April hosted EDA representatives through a virtual site visit, according to a recent email update. The group’s leadership includes BioForward CEO Lisa Johnson, Regional Innovation Officer Wendy Harris and University Research Park Managing Director Aaron Olver, who also chair’s the tech hub consortium.

“We’re optimistic about the outcome of our Phase 2 application and expect a decision on funding this summer,” they wrote.

See the release and listen to a WisBusiness.com podcast with Johnson on the tech hub designation.

— Total assets at state-chartered banks in Wisconsin increased by $1.2 billion over the 12-month period ending March 31, the Department of Financial Institutions announced.

Bank assets reached $67.3 billion at the end of the first quarter of this year, up from $66.1 billion on March 31, 2023, according to the latest DFI release. Over the same period, net operating income declined from $162.7 million to $152.3 million.

DFI Secretary Cheryll Olson-Collins says these 119 banks “demonstrated continued resiliency” through the first quarter, despite economic risks and uncertainty.

“Stable liquidity and asset quality metrics, along with favorable capital levels, indicate that Wisconsin’s state-chartered banks continue to provide strength to the state’s economy,” she said in a statement.

Meanwhile, Wisconsin’s 107 state-chartered credit unions saw total assets rise from $61.9 billion to $65.5 billion over the year, DFI figures show. And though outstanding loans increased by $202.4 million during the first quarter, Olson-Collins says these credit unions remain “financially stable with a positive outlook.”

“Even with reduced earnings through the first quarter, net worth, loans, and savings increased while delinquency experienced a decline to begin the year,” she said in a separate release.

See the banks release and the credit unions release.

— Green Bay manufacturer GLC Minerals says it’s ramping up production of gypsum to fill supply chain gaps linked to the recent bridge collapse in the Port of Baltimore.

The Baltimore port handles more gypsum than any other port in the country, according to yesterday’s announcement, and its partial closure after the Francis Scott Key collapse is causing disruptions for industries that rely on the material.

GLC Minerals President Holly Bellmund says the business has been contacted by manufacturers that need a gypsum supplier while the Port of Baltimore partial closure is being resolved. The company operates a shipping terminal in the Port of Green Bay, and produces gypsum for use in agronomy, animal nutrition and industrial applications.

“Our team has reached out to the Port of Baltimore to learn more about their current needs, and we’ve geared up to offer assistance,” Bellmund said.

See the release.

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