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HomeLatest NewsState NewsGovernor Noem Proposes 2.4% Increase for Providers in Recommended Budget for FY2022

Governor Noem Proposes 2.4% Increase for Providers in Recommended Budget for FY2022

​Governor Noem proposed a 2.4% increase to medical provider reimbursement rates for all providers in her recommended budget for state fiscal year 2022. More information about Governor Noem’s recommended budget is available here.

Governor Noem also proposed a targeted rate increase for community-based providers. Nursing homes and assisted living providers are included in the targeted rate increase. Nursing homes will receive an additional $5 million in total funds, equivalent to an approximately 2.95% targeted increase. Assisted living providers will receive an additional $300,000 in total funds, equivalent to an approximately 2.8% increase. The proposed targeted increases are in addition to the proposed 2.4% increase for all providers. A one-pager regarding the proposed targeted rate increase for community-based providers is available here.

Governor Noem’s recommended budget also proposes to designate three additional facilities as access critical nursing facilities. The three facilities are located in Platte, Madison, and Sisseton. The three facilities will receive approximately $2.5 million in ongoing funds. A one-pager regarding the access critical nursing facilities is available here.

The Governor also recommends $811,967 in one-time funding for rural recruitment assistance programs. The proposed budget will allow DOH to reimburse three physicians and two nurse practitioners fulfilling program requirements in FY2022 and an additional 48 healthcare professionals who have complied with their program agreements in FY2022. A one pager regarding the rural recruitment assistance programs is available here.

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