Minimum Wage Reimbursement Survey

Carl Pucci and Stephen Hanse

DOH drafted its initial minimum wage reimbursement methodology which it shared with the statewide and regional associations a few weeks ago.  The methodology utilized average job wage costs from the 2014 RHCF for comparison to the upcoming 1/1/17 minimum wage thresholds. NYSHFA expressed concerns to DOH that an averaging methodology would not adequately reimburse providers for entry-level staff.  Members of the Payment for Services Committee quickly responded to a NYSHFA facility-specific wage survey request last week.  The results of that survey data were presented to DOH, who agreed that a cost-averaging approach did not recognize costs for many entry-level positions. NYSHFA was able to persuade DOH to construct a facility-specific wage survey, currently being developed.  

DOH will be surveying all nursing homes next week in an effort to gauge the reimbursement impact of the mandatory minimum wage increases to take effect on January 1, 2017. The brief survey (via a Survey Monkey link) will ask facilities to report the number of individuals within various wage bands (ie., $9.00 - $9.25) as of December 31, 2015.  This effort should enable DOH to better recognize costs attributable to minimum wage increases for entry level employees.

It is vital that all facilities respond to the wage survey immediately in order to assist DOH in developing an adequate reimbursement methodology to cover the anticipated costs related to future minimum wage increases for 2017, as well as in future years.  Failure to respond will result in a default calculation utilizing the above-referenced cost averaging method, which could result in less reimbursement for your facility.

Carl J. Pucci
Director, Finance & Reimbursement
518-462-4800 x36

Stephen B. Hanse, Esq.
Vice President, Governmental Affairs
518-462-4800 x25