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Increasing Provider Rates for Private Duty Nurses

The Challenge

Michigan’s PDN nurses were some of the lowest paid nurses in the nation. The MLC team engaged with state’s community health department leadership and legislature in order to set the stage for requesting a significant pay increase to benefit the businesses and their employees in this sector.

The Solution

MLC developed a strategy to increase compensation to Registered Nurses (RNs) and Licensed Practical Nurses (LPNs), while still offering the Medicaid option to special needs families in Michigan. MLC worked with its clients to raise Medicaid reimbursement rates to entice caregivers and agencies to work in the home setting versus the hospital, where workers likely would earn a higher wage. This wage increase was vital to the families and state government, since the cost of hospital care was almost double the cost of an at-home nurse; in addition, long-term hospital stays detach children from their home environment. MLC worked with data provided by Health Management Associates which compared RNs and LPNs who work in the home versus the institutional setting and the potential impact on Medicaid if the rates for PDN services were to increase. The analysis showed there were many variables that contributed to inadequately trained PDN staff, including low Medicaid reimbursement. This particular variable limited home care agencies’ ability to recruit qualified staff, which ultimately affects medically fragile children’s home environment.

The Result

In 2016, MLC’s lobbying paid off. The administration, the legislative leaders overseeing the appropriations for Medicaid, and the Michigan Department of Health and Human Services, realized the importance of the pay increase based on MLC’s research. The MLC team successfully lobbied for a 15 percent increase, nearly $7 million, for the nurses’ budget. This was a huge success, as it ensured PDN employees will now be appropriately compensated for their work in a niche market of caregiving.

For more information on how MLC can help you tackle your challenges, contact us today.

“The MLC team’s work on this initiative brought needed attention to a niche market of caregiving. Our successful lobbying efforts ensure both proper compensation for private duty nursing programs and qualified care for patients who need it most.”
- Brendan Ringlever