A recent report commissioned by the Oregon Legislature offers a detailed look at the current state of compensation for service providers working with individuals who have disabilities and older adults. The study, led by Burns & Associates, was mandated by Senate Bill 5506 in 2023 to evaluate wages and rates for Medicaid-funded services through the Oregon Department of Human Services (ODHS) Office of Aging and People with Disabilities (APD), and the Office of Developmental Disabilities Services (ODDS).
The report shows that caregivers, who work in a variety of settings such as in-home care, group homes, foster homes, day centers, and residential care facilities, are paid for performing essential work to support others with daily living. According to the ODHS, the study aimed to provide a clear understanding of the payment models and the workforce challenges faced by direct-care service providers in Oregon. The providers in question support a growing demographic that increasingly depends on comprehensive care.
Key recommendations outlined in the report call for the establishment of transparent rate models to better align with current service delivery costs. Burns & Associates propose standardizing total compensation for direct-care workers and increasing the average wage for agency-employed direct-care workers to $23.20 per hour, equating to an annual salary of about $48,000, inclusive of comprehensive benefits, as per the ODHS. Furthermore, the report suggests an increment of $4.50 per hour for self-employed direct-care workers' base wages.
The study by Burns & Associates, which drew on inputs from an advisory group, work groups, provider surveys, and research into wages and workforce challenges, puts forth a comprehensive strategy to anticipate and fulfill the state's increasing demand for disability and elderly services. The full report, including findings and final recommendations, was made available to the public and submitted for consideration to the Joint Ways and Means Committee, which is responsible for forming the state's biennial budget. The public had the opportunity to review a draft of the study and provide feedback in October prior to the finalization of the recommendations.
