More Good News: Update on Payout of Remaining 20% of Initial Settlements

In March 2023, the Michigan Department of Health and Human Services (MDHHS) offered nursing facilities the opportunity to file for initial settlements for fiscal year 2022, which gave providers 80% of the cost settlements due to them based on 2022 filed cost reports. Over 360 Michigan nursing facilities requested initial settlements; and as of November 9, the majority of providers received their 80% initial settlements. 

Since then, MDHHS has received considerable feedback regarding ongoing cash flow concerns in nursing facilities, which prompted the department to take steps to amend the settlement policy to allow providers to receive 100% of the initial settlement amounts. The first step of that process occurred on November 8 when the Michigan Legislature authorized the department to pay out the remaining 20% for the requested initial settlements from the filed cost reports. The next step before the remaining 20% can be paid to providers is that the department must approve this policy change. MDHHS will notify facilities as soon as this is complete and will give an estimated date for the remaining payment.