FOR IMMEDIATE RELEASE
North Shore Health Swing Bed Legislation Passes in House and Senate
GRAND MARAIS, MN, July 13, 2025 – North Shore Health (NSH) in Grand Marais, MN announced that during the Special Legislative Session on Monday, June 9, both the House and Senate passed the Health and Human Services Omnibus Bill, which includes North Shore Health’s proposed swing bed language. The Governor is expected to sign the bill into law.
This legislation, proposed by NSH, provides swing bed flexibility by allowing a portion of Care Center beds to be reclassified as hospital beds. Working with Eric Shell of Stroudwater Associates, this was identified as an opportunity to reduce financial losses. One recommendation was to incorporate some of the space and operation of the nursing home to the hospital as swing beds. This change has the potential to provide over $800,000 in additional Medicare reimbursement, annually, at no additional cost to the State of Minnesota.
By changing the areas of costs between the hospital and nursing home differently (on paper), it changes how NSH allocates costs thus increasing reimbursement from Medicare. There will be no physical change to the building or beds. The residents will stay in their same room in their same bed. The only thing that will change is the name of the location – hospital versus nursing home.
This legislation will take effect on January 1, 2026, or upon receiving federal approval, whichever occurs later. NSH will need to work closely with the Minnesota Department of Human Services to encourage timely engagement with the Centers for Medicare and Medicaid Services (CMS) regarding the necessary State Plan amendments. Special thanks to Senator Grant Hauschild, Representative Roger Skraba and Representative Natalie Zeleznikar, for their invaluable assistance. Their support and advocacy were instrumental in making the passage of this legislation a reality.
“North Shore Health is grateful for of the efforts of the legislators whose work and dedication contributed to the passing of this bill,” says Kimber Wraalstad, NSH CEO. “This support is vital to sustaining our mission, Community Access to Compassionate Care. Caring for our community and those who rely on our services is at the heart of who we are. We remain committed to our Mission while addressing the unique challenges of rural health care.”
For more information about NSH, please visit www.northshorehealthgm.org.
About North Shore Health:
North Shore Health is a rural health facility located on the beautiful north shore of Lake Superior in Grand Marais, MN. The organization, which is part of the Cook County Hospital District includes a 16-bed critical access hospital, a 37-bed skilled nursing facility, a home health agency, an ambulance service and a variety of diagnostic and therapeutic services. Their mission is “Community Access to Compassionate Care”.