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Ministry Status: Activation Status

Long-Term Care Minor Capital Funding Policy

Published April 1, 2020

1.0 Introduction

The Long-Term Care (LTC) Minor Capital Funding Policy outlines the conditions and processes for Minor Capital (MC) funding to support LTC home licensees (as defined in the Long-Term Care Homes Act, 2007 - LTCHA) ("Licensee") in maintaining their homes in an optimal state of repair while ensuring the safety of their residents. This Funding Policy is the primary Applicable Ministry Policy Document in respect of the LTC Minor Capital Funding Program under Schedule A of the Letter of Agreement for Ministry Direct Funding to LTC Homes (Direct Funding Agreement, or DFA) between each LTC Licensee and the ministry.

2.0 Funding Eligibility

2.1 Subject to section 2.2, MC funding under this policy is provided to each Licensee of an LTC home with an Eligible Bed. An Eligible Bed is a licensed or approved bed in respect of which the Licensee does not receive:

Beds in abeyance, interim beds under a temporary licence, beds under a temporary emergency licence, and Elderly Capital Assistance Program (ELDCAP) beds are not Eligible Beds.

Despite anything in this Policy, or Ministry correspondence that does not expressly indicate otherwise, beds that are not Eligible Beds as of April 1, 2020, shall not become Eligible Beds unless and until the ministry confirms in writing that such beds (or a portion of such beds) are authorized to become Eligible Beds.

An Eligible Home is a Licensee operating Eligible Beds.

2.2 From April 1, 2020 to March 31, 2021 only Licensees of Eligible Beds that were recipients of Structural Compliance Premium funding under the Policy for Funding Construction Costs of Long-Term Care Homes -April 1999 (SCP, 1999), that was discontinued on March 31, 2020, will be eligible for MC funding.

2.3 Effective April 1, 2021, MC funding will be expanded to include the remainder of eligible beds referenced in section 2.1 above.

3.0 Funding Methodology and Payment of Funding

Licensees with Eligible Bed(s) will receive MC funding from the Ministry in accordance with the terms and conditions of this policy, subject to the terms and conditions of the Letter of Agreement for Ministry Direct Funding to LTC Homes between the Licensee and the Ministry.

As noted in section 2.1, the first year of MC funding (Year 1), will be allocated to former recipients of the SCP-1999 in an amount equal to their SCP-1999 funding previously paid immediately prior to April 1, 2020.

As outlined in Table 1 below, beginning in second year of MC funding (Year 2),  subject to the terms and conditions set out in this policy, MC funding will consist of a fixed amount of $5,000 for each eligible LTC home and a per diem amount for each of the home's eligible beds.

The funding approach will be gradually phased-in over a period of four years Sections 3.1 to 3.4 provide complete details on the conditions for homes to determine their MC funding amounts.

Table 1. Summary of Phased-In MC Funding Approach
Descriptions Year 1
Apr 1, 2020 to Mar 31, 2021
Year 2
Apr 1, 2021 to Mar 31, 2022
Year 3
Apr 1, 2022 to Mar 31, 2023
Year 4
Apr 1, 2023 to Mar 31, 2024
Phase-out Mitigation Approach for prior SCP-1999 Recipients

(Over the four-year mitigation period, prior SCP-1999 recipients will receive MC funding that is not less than the following percentages of the SCP-1999 funding that was paid for the home in the 2019-20 funding year) 

100% 75% 50% 0%

Fixed Amount

As noted above, prior SCP-1999 recipients will receive the greater of: the amount as determined by the respective mitigation approach or the fixed plus per diem amount.

All Eligible Homes will transition to the fixed plus per diem amount by April 1, 2024.

N/A $5,000 per home $5,000 per home $5,000 per home

Phased in Per diem

N/A + $1.17 + $1.42 + $1.42

3.1 Year 1 - Period from April 1, 2020 to March 31, 2021

Eligible Homes that received SCP-1999 as of March 31, 2020 will receive MC funding in an amount that is equal to their SCP funding previously paid for the home immediately prior to April 1, 2020. No other homes will receive MC funding for Year 1.

Depicts minor capital funding for Year 1
LTC Home Name Eligible Beds Year 1
MC Funding

LTC  Home X

(former SCP-1999 recipient)

100 $100,000

LTC Home Y

(home with eligible beds that did not previously receive SCP-1999)

100 $0 (Not eligible in Year 1)

3.2 Year 2 - Period from April 1, 2021 to March 31, 2022

Eligible Homes that received funding pursuant to section 3.1 and operate Eligible Beds will receive the greater of:

For example:

Depicts minor capital funding for a home that previously received SCP-1999 funding in the 2019-2020 funding year
LTC Home Name Eligible Beds Year 1
MC Funding
Phased MC Funding Approach
For Year 2 - Greater of: Minimum of 75% of Year 1 MC Funding Allocation
Phased MC Funding Approach
For Year 2 - Greater of: $5000 + $1.17 PDPEB
Year 2
MC Funding

LTC Home X

(former SCP-1999 recipient)

100 $100,000 $75,000 $47,705 $75,000

LTC Home Y

(home with eligible beds that did not previously receive SCP-1999)

100 N/A N/A $47,705 $47,705

3.2.1 An Eligible Home that did not receive funding pursuant to section 3.1 (i.e., Year 1) and operates Eligible Beds will receive $5,000 plus $1.17 PDPEB in Year 2.

3.3 Year 3 - Period from April 1, 2022 to March 31, 2023

An Eligible Home that received funding pursuant to section 3.1 and operates Eligible Beds will receive the greater of:

For example:

Depicts MC funding for a home that previously received SCP-1999 funding in the 2019-2020 funding year over the phase-in period
LTC Home Name  Eligible Beds Year 1
MC Funding
Year 2
MC Funding
Phased MC Funding Approach
For Year 3 - Greater of: Minimum of 50% of April 1, 2020 Allocation
Phased MC Funding Approach
For Year 3 - Greater of: $5000 + $1.42 PDPEB
Year 3
MC Funding

LTC Home X

(former SCP-1999 recipient)

100 $100,000 $75,000 $50,000 $56,830 $56,830

LTC Home Y

(home with eligible beds that did not previously receive SCP-1999)

100 N/A $47,705 N/A $56,830 $56,830

3.3.1 An Eligible Home that did not receive funding under section 3. 1 (i.e. in Year 1) and operates Eligible Beds will receive $5,000 plus $1.42 PDPEB in Year 3.

3.4 Year 4 - Effective April 1, 2023 each Eligible Home will receive $5,000 for the year plus $1.42 PDPEB.

Funding Fully Implemented
LTC Home Name  Eligible Beds Year 1
MC Funding
Year 2
MC Funding
Year 3
MC Funding
MC Funding for Year 4 Includes both of the following: Base allocation MC Funding for Year 4 Includes both of the following: $1.42 PDPEB Year 4
MC Funding

LTC Home X

(former SCP-1999 recipient)

100 $100,000 $75,000 $56,830 $50,000 $51,830 $56,830

LTC Home Y

(home with eligible beds that did not previously receive SCP-1999)

100 N/A $47,705 $56,830 $50,000 $51,830 $56,830

3.5 Regarding the payment of funding, there will be no changes in Year 1 from previous SCP-1999 funding levels. Starting in Year 2, if the fixed amount plus per diem approach provides an Eligible Home with more funding than 75% of their SCP-1999 funding previously paid for the home immediately prior to April 1, 2020, the fixed amount of $5,000 per year will be paid out in monthly installments and the funding will be pro-rated to $3,750 over the 9-month period from April 1, 2021 to December 31, 2021 and the remaining $1,250 will be paid out from January 1 to March 31, 2022.

4.0 Terms and Conditions of Funding

Minor Capital funding may only be expended by an Eligible Home on capital repairs or replacements that are required to:

4.01 maintain the LTC home and/or properties in a state of good repair

4.02 respond to new and/or updated LTC regulatory standards

4.03 promote resident comfort, safety and security; or

4.04 protect the integrity of LTC programs and services

4.1 Subject to sections 4.0, and 4.3, MC funding may only be spent on one or more of the following capital expenditures:

4.1.1 Sprinkler repair, installation or replacement

4.1.2 Roof repair or replacement

4.1.3 Electrical system repair or replacement

4.1.4 Wireless nurse call system repair, installation or replacement

4.1.5 Siding and insulation repair, installation or replacement

4.1.6 Heating or cooling system/air conditioning unit(s) purchase, repair, installation or placement

4.1.7 Wall/door protection and guard installation, repair or replacement

4.1.8 Flooring repair, installation or replacement

4.1.9 Lighting upgrades, repair installation or replacement

4.1.10 Renovations to accommodate program changes or enhanced patient safety

4.1.11 Other expenditures within the scope of section 4.0 may be considered at ministry discretion through requests submitted to ltc.info@ontario.ca.

4.2 Routine maintenance is excluded from eligible expenditures. Examples of routine maintenance include seasonal servicing or annual testing of equipment or systems, or routine repairs of equipment such as repair of washroom fixtures.

4.3 To maintain continuous eligibility for MC funding, LTC homes must meet the accountability and reporting requirements outlined in section 5.0.

5.0 Reporting Requirements and Accountability for Funding

5.1 Each LTC Licensee is required to report the expenditures funded from their Minor Capital allocation in a separate line in Section I in the Licensee's audited LTCH Annual Report for a defined 12-month period in accordance with the form and manner set out in the "LTCH Annual Report Technical Instructions and Guidelines".

5.2 Unused funds will be recovered as part of the annual reconciliation process. Please refer to section 3.5.

 

For More Information

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