Dunn County’s nursing home improves fiscal picture
A change in Medicaid reimbursement rates by the state of Wisconsin has significantly improved the financial picture for The Neighbors of Dunn County, the county-operated nursing home in Menomonie.
Administrator Carmen Meyer told the County Board of Supervisors recently that the facility would have an operating budget surplus of $1.2 million for 2024, after two years of budget shortfalls.
Additionally, Meyer said, “the next five years are all projected to be in the black.”
County Board Chair Kelly McCullough said supervisors know how important The Neighbors of Dunn County is for their constituents, and the improved fiscal picture is outstanding news.
“We know that government-owned and operated nursing homes consistently get better ratings for care than for-profit facilities,” McCullough said, “and the fact that we can provide a better standard of care for our aging population with little to no tax impact shows the value of public services run by public entities.
“The Neighbors is an absolute gem and will help many of our older citizens stay close to home when they need a skilled nursing facility.” McCullough said.
The good news about The Neighbors of Dunn County’s finances comes as an increasing number of publicly owned nursing homes and similar facilities are either being sold to for-profit companies or are closing. In Wisconsin, just 14 percent of nursing homes are publicly owned, with for-profits owning 54 percent and non-profits owning 32 percent.
Since 2016, Meyer told the County Board, 66 nursing homes have closed in Wisconsin, and 12 nursing homes within 50 miles of Dunn County have closed since 2016. These include Dallas Care and Rehab in 2018 and Colfax Health and Rehab in 2023, and three in the Eau Claire area.
Additionally, the number of licensed nursing home beds decreased from 28,719 in March 2020 to 25,891 in October 2022.
Meyer said The Neighbors of Dunn County traditionally has operated in the black, if depreciation was not included. But a change in Wisconsin’s Medicaid reimbursement rate in the last two years means that The Neighbors of Dunn County is expected to have a surplus in coming years, even accounting for depreciation.
For many years, Meyer said, the state of Wisconsin “had one of the worst Medicaid reimbursement rates in the country.” But that changed in the 2023-25 state budget, she said.
In 2022, the state Department of Health Services announced that in the 2023 fiscal year, Medicaid would cover an average of 91 percent of the cost of care provided in nursing homes, up from 77 percent in 2022. Gov. Tony Evers’ pandemic relief plan set aside $258 million to increase Medicaid reimbursements. Unlike previous increases, it guarantees minimum payments to providers.
Another aspect of the change means facilities can get more assistance as their costs increase, Meyer said, adding, “the reimbursement should keep increasing as costs increase.”
The nursing home will be even more important in the future as the Dunn County population continues to age, Meyer told the County Board. In 2010, residents 65 and older made up 12 percent of the county’s population, and that is projected to increase to 26 percent by 2040.
The Neighbors of Dunn County actually is comprised of three separately licensed skilled nursing facilities. It has a total of 137 beds. In the last year, 246 residents lived at various times at the facility.