Colorado Gov. Jared Polis (D) has signed into law a measure that changes the criteria for grants from the state’s Dept. of Public Health and Environment’s Nursing Home Penalty Cash Fund (civil monetary penalties - CMPs).

Now, the funds can be used for grants to cover training and education for nursing home facility staff, and the law also removes prohibitions on certain government entities from receiving grant dollars, according to local media reports on ColoradoPolitics.com.

“Colorado and the nation face a shortage of healthcare workers to provide everyone with the high-quality and affordable care we deserve,” Polis said. “This law will provide scholarships and training opportunities for healthcare workers who take care of our loved ones in nursing homes, ensuring our families receive the highest quality care while helping fill in-demand jobs.”

In an analysis of the move, Jay Gormley, chief investment officer, COO, Advisory, Zimmet Healthcare Services Group, said “while CMP funds have historically been used for quality improvement and resident-focused initiatives, Colorado is effectively leaning into the increasingly common view that workforce stabilization itself is now a quality issue.”

He said the measure appears to be designed to support scholarships, training programs, and workforce development efforts to improve recruitment and retention in nursing facilities.

“While the actual dollar impact remains relatively modest in the context of the industry’s broader labor challenges, it does represent another example of states looking for more flexible ways to deploy existing funding mechanisms to support staffing infrastructure rather than relying solely on direct Medicaid rate increases,” Gormley said.

Comments or questions? Contact Patrick Connole at pconnole@parkplacelive.com.