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Despite an infusion of state funding, Ely’s nursing home continues to face a cash flow dilemma.
That was the report from Adam Masloski, executive director of the Boundary Waters Care Center, during last month’s gathering of local officials and area legislators.
Mandates related to higher employee pay, the expiration of critical access nursing home fund, and the end of a one-time funding boost will have a severe impact on the nursing home’s bottom line, Masloski told lawmakers at the Grand Ely Lodge.
“All of that together gives us almost a million-dollar swing,” said Masloski. “I worry that our facility can’t afford that sort of swing.”
Masloski acknowledged that “we are running into some cash flow issues.”
The future of Ely’s nursing home was in jeopardy in early-2023, before BWCC received about $1.2 million from the state through a combination of measures that were part of a $300 million statewide package for nursing homes.
In 2024, BWCC received another $199,109 from the state to address long-term debt and facility improvements.
Masloski cited the state assistance and said “that helped a lot.”
Yet BWCC continues to face challenges, among them reimbursements that are slow to reach the facility.
“That has improved somewhat but we still have this lag time from what we spend to what we get reimbursed,” said Masloski.
Masloski also cited mandates that require higher wages for nursing home workers.
“I’m not against our employees getting more money, but the cost to our facility would be $400,000 up front and we would not see reimbursement for that for a year and a half to two years,” sad Masloski.
Also at issue is the expiration of critical access funding that’s set for June 30, and the end of what Masloski called “a one-time rate add-on.”
“We really could use critical access nursing home funding to continue,” said Masloski. “I think we are one of the nursing homes that are the furthest away from another nursing home in terms of miles away.”
Both State Sen. Grant Hauschild (D) and State Rep. Roger Skraba (R) worked to get BWCC additional funding in 2023, and they were sympathetic to Masloski’s concerns during discussion at the Dec. 16 event at Grand Ely Lodge.
“You have unelected people telling you that you have to pay more,” said Skraba.
Hauschild clarified that the pay increase goes into effect “only if the legislature funds it,” and called it a measure “that helps you recruit and retain,” workers.
According to Masloski, BWCC has 52 current employees.
Hauschild said “I think we need to work on critical access nursing home funding,” but added “it’s going to be tough with what we’re looking at four years down the line,” citing projected state deficits in four years.
“Eighty percent (of the deficit) is special education for K-12 and long-term care,” said Hauschild. “We’re facing some really difficult decisions as our population ages and as our young people continue to have needs.”
Two years of heavy financial losses at BWCC created a crisis-like situation in early- 2023 that has since been at least partially soothed.
BWCC was also aided by a local fundraising campaign that generated about $60,000 for the 42-bed facility, and provided a lifeline of sorts.
Masloski pressed for measures that would speed up payments to nursing home facilities.
“I do believe my people should get more in wages, and that it would help nursing homes in general but need to get the funding up front,” said Masloski.
