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Bill Bans Construction Of New Nursing Homes For Three Years

By Brandon Smith

Posted March 17, 2015

Legislation putting a three-year halt to new nursing home construction narrowly passed the House Tuesday.

The bill would bar construction of new nursing homes for three years with only a few exceptions. Those include allowing construction in counties where nursing home occupancy rates are at least 90 percent, and allowing construction of small homes of no more than a hundred beds.

A similar bill died in the waning hours of last year's session.

If the bill is signed into law, projects currently in the works must have submitted plans to the state by March 1 to move forward.

Rep. Tim Brown, R-Crawfordsville, the bill's sponsor, says the state's existing nursing homes are far from full. He says the funding structure, through Medicare reimbursement, makes building new homes a bad investment.

"The cost of all buildings, the cost of all beds are borne by the taxpayers of the state of Indiana," Brown explains. "So when we have unfilled beds, we are all paying for them as taxpayers."

Opponents argue the bill will cost jobs in both the nursing home and construction industries, arguing the measure interferes in the free market.

"You're going to harm portions of this state to satisfy some pre-conceived need or notion that you're saving the state money, when in fact Chairman Brown's bill is going to cost this state money," says Representative Chuck Moseley, D-Portage.

The bill now heads back to the Senate, which can concur to changes made by the House and send the legislation to the governor. If the Senate doesn't agree, the bill goes to conference committee.

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