Special Session moves North Shore Health Swing Bed Legislation to governor’s desk

North Shore Health 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.

North Shore Health recognized Senator Grant Hauschild, Representative Roger Skraba, and Representative Natalie Zeleznikar for their advocacy in passing the bill. The project has been a focus of North Shore Health CEO Kimber Wraalstad.

This legislation provides swing bed flexibility by allowing a portion of Care Center beds to be reclassified as hospital beds. North Shore Health has stated that the change has the potential to provide over $800,000 in additional Medicare reimbursement annually at no additional cost to the State of Minnesota. Meanwhile, Wraalstad has insisted that those who occupy these beds and care for them would not change, only the classification of the beds themselves.

“Drafting and gathering support for this legislation has been challenging, but we are pleased the Health and Human Services Omnibus Bill, which included NSH [North Shore Health] proposed Swing Bed language, has officially passed,” Wraalstad told WTIP. “We are grateful to Senator Hauschild and Representative Skraba for getting us to this point.  They introduced this legislation, testified at the Committee hearings and provided their ongoing support.  While we still need to work with the Minnesota Department of Human Services to implement the change authorized by this legislation, we are one step closer to achieving our goal.”

The legislation is a victory for North Shore Health during a time of financial uncertainty. A combination of expanded mandates for the hospital and cuts to Medicaid reimbursement have loomed over the organization throughout the legislative session. Making the success of the “swing bed legislation” all the more critical.

“Financial challenges are going to be a prime concern in health care right now,” Wraalstad told WTIP in an interview in March. “If people aren’t concerned, they probably should be about what is happening, both at a national level and a state level, and the financial impact to all healthcare is going to be tremendous.”

The effort to change the regulations around swing beds began when North Shore Health consulted with Eric Shell of Stroudwater Associates, a consulting firm specializing in rural hospitals. At the time, Wraalstad was concerned that after decades of operating at a loss, North Shore Health would have to close its nursing home.  However, the consultation identified an opportunity to reduce financial losses. One recommendation was to incorporate some of the space and operation of the nursing home into the hospital as swing beds.

In February, Wraalstad traveled to the capital, where she testified before the Health and Human Services Finance and Policy Committee. She continued to work with Senator Hauschild and Representative Skraba to advance the legislation. When the legislative session ended, the bill had been included in the Health and Human Services Omnibus Bill, but had yet to be passed by either legislative body.

This legislation will take effect on January 1, 2026, or upon receiving federal approval, whichever occurs later. North Shore Health has stated that it will work closely with the Minnesota Department of Human Services to facilitate timely engagement with the Centers for Medicare and Medicaid Services (CMS) regarding the necessary State Plan amendments.

Josh Hinke June 15, 2025