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Legislation proposed in St. Paul would bring more state funding to Ely’s nursing home.
Boundary Waters Care Center stands to receive another $250,000 under terms of a bill proposed by State Sen. Grand Hauschild (D-Hermantown).
“Rural nursing homes have been hit hard, and now federal funding cuts are on the verge of completely devastating this industry,” said Sen. Hauschild. “That’s why it’s critical that we take action now to get some much needed funding to our rural nursing homes and ensure they can keep their doors open for our seniors and their families.”
Hauschild has presented two bills in the Senate Human Services Committee - including one with a direct appropriation for BWCC and another to provide additional monies for rural nursing homes across the state.
In a March 6 hearing, Hauschild presented the legislation setting aside $250,000 for BWCC, which has been designated a Critical Access Nursing Facility, a federal designation based on facilities serving isolated communities.
Earlier this week, Hauschild presented a second bill that increases funding for the state’s Critical Access Nursing Facilities program by $2 million annually.
This program was revived two years ago and uses a formula to distribute funds to nursing homes throughout the state that serve rural areas.
Adam Masloski, executive director of BWCC, testified at both hearings.
According to Masloski, without funding from the CANF program, their facility would’ve operated as a loss. As the only facility of this type, within a 50 mile radius, and one of the few that operate with a nonprofit model, their closure would devastate families within Ely and the surrounding area.
Masloski reported in late-2024 that the nursing home was facing “cash flow issues” The future of Ely’s nursing home was in jeopardy in early-2023, before BWCC got 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.
The BWCC also launched a private fundraising effort that helped the facility bridge a troubling funding gap.
Ely’s nursing home has approximately 50 employees and is a 42-bed facility.
Both nursing home and local officials have asked for help from St. Paul to help the community retain a nursing home. The next-closest facility is about 50 miles away.
“As the Senator for the largest and most rural senate district in the state, I hear daily about the struggles facing our nursing homes, and I’m extremely nervous about their future,” added Sen. Hauschild. “I’m doing what I can at the state level, but it’s a drop in the bucket to what our federal partners can do - for better or for worse. I implore our federal colleagues to fight for our communities and for funding for critical programs like Medicaid that are lifeline for these critical facilities.
