2014/15 Personal Support Services Wage Enhancement Funding

Transcription

1 2014/15 Personal Support Services Wage Enhancement Funding Central East LHIN Board of Directors September 24, 2014 Prepared By: Usha Cithiravel

2 Background The Ministry of Health and Long-Term Care s (MOHLTC s) Personal Support Services (PSS) Wage Enhancement Directive to the Local Health Integration Networks (LHINs) came into effective April 1, This directive aligns with the Personal Support Worker (PSW) Workforce Stabilization Strategy to create a high-quality PSW workforce that can meet the growing need for home and community-based health services in Ontario. 2

3 Background The Directive applies to the following LHIN-funded Health Service Providers (HSPs) and services: Community Care Access Centres (CCACs); for Personal Support Services (PSS) purchased from their contracted service providers; HSPs who provide PSS under contract with CCACs; and Other LHIN-funded home and community care agencies that provide PSS. Excludes the following HSPs and services: PSS provided under the MOHLTC s policy Self-Managed Attendant Services in Ontario Direct Funding Pilot Project Policy Guidelines ; Long-Term Care Homes (LTCHs); Hospitals; and Other LHIN-funded services provided by HSPs in the home and community sector. 3

4 Requirements of the Directive The directive states: HSPs subject to this Directive are required to: Increase the hourly wage for individuals providing LHIN-funded PSS by $1.50 per hour retroactive to April 1, 2014 (Individuals providing PSS funded by the LHIN will receive the $1.50 per hour wage increase even if their pay is above the new $14.00 minimum wage; and Establish a new minimum base wage of $14.00 per hour for these individuals retroactive to April 1, Community Care Access Centre s (CCACs) are required to amend their contracts with service providers, stipulating that these HSPs meet the terms stated above; and This wage increase and the new minimum applies over and above any current or contracted wage increases. 4

5 Funding Allocation Sector PSS Hours Funding Allocation ($1.50/hour) Community Care Access Centre (CCAC) Community Support Services (CSS) Additional 16% for Employer Contributions (Benefits) Total 2,816,774 $4,225,161 $676,026 $4,901,187 1,003,301 $1,501,951 $240,792 $1,745,743 Total $6,646,931 5

6 Timelines July 14 th, 2014 : July 30 th, 2014: July 31 st, 2014: August 6 st, 2014: Announcement of PSS Wage Increase through the Ontario Budget Speech. Administrative Letter for PSS Wage Increase Funding issued by MOHLTC. Central East LHIN issued funding letters to all qualifying HSPs. Central East LHIN received sign-backs from HSPs accepting the funding. September 1 st, 2014: Wage increase is to be provided to all LHIN funded agencies with applicable PSS hours. September 2014: All retroactive wage increases for hours worked between April 1, 2014 and August 31, 2014 must be paid to employees by providers. 6

7 Timelines (Continued) October 15 th, 2014: October 31 th, 2014: Central East CCAC (CECCAC) contracted HSPs must submit certificate of compliance to the PSS Wage Enhancement Directive to the CECCAC by this date. CECCAC must confirm receipt of its contracted HSPs certificate of compliance. Other HSPs subject to this directive must submit their certificate of compliance to the Central East LHIN by this date. 7

8 Outstanding Issues and Mitigations The MOHLTC used 2013/14 year-end reporting to calculate LHINs PSS Wage Enhancement funding allocations. This has resulted in several issues that have a financial impact on the Central East LHIN: Data Quality/Reporting; Service Changes/Enhancement in 2014/15; and Inclusion of Ministry Funded PSS Hours. A brief description of the issue, affected HSP(s) and Mitigation strategies are provided in the following slides. At this time the issues create a pressure of approximately $500K (base), of which the CCAC is assisting the LHIN by cash managing $400K until the Q3 provincial reconciliation is completed. 8

9 Outstanding Issues and Mitigations Data Quality Issue (Insufficient MOHLTC Funding): Affected HSP(s) Description of Issue Mitigation Strategy Victorian Order of Nurses for Canada (VONCO) Due to a reporting error made by an HSP, the Central East LHIN did not receive the correct allocation. The resulting shortfall due to this error is 29,292 PSS hours and $50,968 in PSS Wage Enhancement funding. The LHIN Liaison Branch (LLB) has been informed of this issue. The Central East LHIN will fund this shortfall if the MOHLTC provides funding for this data error through the provincial Q3 reallocation process. Otherwise, it will have to be internally managed by VONCO. 9

10 Outstanding Issues and Mitigations 2014/15 Service Changes/Enhancements (Volumes Shortfall) Affected HSP(s) Description of Issue Mitigation Strategy CECCAC All LHINs collectively decided to fund HSPs based on their 2014/15 service commitments. The shortfall to the Central East LHIN from this is $398,467 which has been managed by reducing the CECCAC s 2014/15 PSS Wage Enhancement allocation. The CECCAC has agreed to temporarily cash manage the shortfall through a reduction to their 2014/15 PSS Wage allocation until the Q3 reconciliation process is completed. LLB has been informed of this issue. This pressure has been added to the risk register and highlighted in the reallocation process. VONCO VONCO s 2014/15 PSS Wage Enhancement allocation did not include 2014/15 expansion of services of 37,935 additional hours. The resulting shortfall is $66,007. LLB has been informed of this issue. This pressure has been managed using 2012/13 Community Investments residual base funding. 10

11 Outstanding Issues and Mitigations Inclusion of Ministry Funded Personal Support Services Hours Affected HSP(s) Description of Issue Mitigation Strategy Community Support Sector (CSS) HSPs MOHLTC s allocation to the Central East LHIN included 16,481 PSS hours that are funded by the MOHLTC. MOHLTC has the right to recover the MOHLTC PSS hours which will increase the Central East LHIN shortfall by $28, 677. LLB has been informed of this issue. This pressure has been added to the risk register and highlighted in the reallocation process. This pressure is to be managed using Central East LHIN residual base funding. 11

12 Next Steps Funding letters have been issued, sign-backs received and funding flowed to HSPs. The LHIN continues to work with the affected HSPs and MOHLTC to seek resolution of outstanding issues. The next phases of funding in 2015/16 and 2016/17 are expected to reflect lessons learned in Phase I. 12