OCCMHA Announces 50 Cents Pay Raise for Direct-Care Employees

After careful consideration, including a comprehensive employment market evaluation and provider survey, Oakland County Community Mental Health Authority (OCCMHA) is initiating a network wide 50 cents pay increase for all direct-care staff and their immediate supervisors.

Direct-support workers employed through Oakland County’s public mental health system care for and support some of the most vulnerable people in the community, including those with developmental disabilities, mental illness, and substance use disorders.

“The decision to allocate valuable funding toward a direct-care staff wage increase is influenced by several factors,” explains OCCMHA Executive Director and CEO, Willie Brooks. “Most important, individuals on the frontline of our service delivery model must receive appropriate compensation for their important role in ensuring people with disabilities are given the opportunity to lead independent and self-directed lives.”

During its April Board meeting, OCCMHA announced the allocation of $5 million toward reimbursement rates for direct-support workers. The funds were realized by recent system wide administrative and service delivery efficiencies implemented in response to budget reductions from the State.

Phase one of the plan is taking place during the last six months of OCCMHA’s Fiscal Year (FY) 2016 and will use $2.5 million of the $5 million. The remaining $2.5 million is designated for distribution during FY 2017, which begins October 1, 2016.

“We are very pleased that OCCMHA is supporting direct care workers with a wage increase. Direct care workers are the foundation of the public mental health system and play a critical role in providing quality care and supports to our most vulnerable citizens,” says Dennis Bott, CEO of Macomb-Oakland Regional Center. “Recognizing these essential workers through an increase in compensation is an important step in maintaining high quality care for the individuals with developmental disabilities that we serve.”

The additional funding also provides relief to OCCMHA core service provider agencies impacted by legislation passed in 2014, requiring the State’s minimum wage rate increase from $7.40 to $9.25 by January 1, 2018. Public mental health service agencies throughout Michigan are struggling to meet the higher pay rate without reducing services to people.

OCCMHA contracts with several agencies to provide public mental health services and does not employ direct-care workers. These agencies include Common Ground, Community Housing Network, Community Living Services, Community Network Services, Easter Seals Michigan, Macomb-Oakland Regional Center, Oakland Family Services, and Training and Treatment Innovations, as well as a comprehensive listing of substance use prevention and treatment service providers.

“I commend the efforts of Willie Brooks and his executive leadership team, as well as the OCCMHA Board of Directors. This funding decision ensures a much deserved wage increase to staff providing supports and services to people with disabilities,” states Robert Stein, general counsel, Michigan Assisted Living Association.

New financial obligations, cost settlement, audits, and reporting contract language has been developed surrounding the direct-care staff pay increase and is being presented to the core service provider agencies for review and approval.

According to recent surveys, the average starting wage for direct-support workers is $8.75 per hour. Low wage rates have historically been linked to staffing shortages and turnover, causing concern among advocates and loved ones of individuals receiving services.

“A number of people have advocated for a pay increase to direct service workers, as well as a funding mechanism that guarantees the money is used for its intended purpose only,” adds Brooks. “I am confident that the energy, time, and thought dedicated to developing this new funding model for direct-care wages will have a positive impact on staffing challenges, translating to improved and consistent services for people.”

About OCCMHA

Oakland County Community Mental Health Authority is the public mental health system responsible for identifying, influencing, and delivering services and supports to approximately 25,000 Oakland County residents, including individuals with intellectual/developmental disabilities, adults with mental illness, children with serious emotional disturbance, and persons with substance use disorders. Most of these individuals have Medicaid.

OCCMHA’s current network of service providers include: Common Ground, Community Housing Network, Community Living Services, Community Network Services, Easter Seals Michigan, Macomb-Oakland Regional Center, Oakland Family Services, Inc., and Training and Treatment Innovations. A complete list of substance use service providers is available on OCCMHA’s website. For more information about OCCMHA call (800) 341-2003 or visit www.occmha.org.