For DCM, Non-Spe DC and DCS, there is a very strong, significant correlation between the variation in ave salaries by region and the COLA index.
Largely explained by a greater proportion of DPH FTEs in this region than other Depts. DPH ave salaries tend to be higher for Clinical positions.
No single Dept consistently provides for a higher ave salary across staff categories.
A Salary Analysis of the Purchase of Service (POS) System By: Yuanjing Ren Instructor: A. James. Lee May 2010 University of Massachusetts Lowell
Background – EOHHS POS system EOHHS and its 14 agencies relays on a network of 1000 + independent, large non-profit providers to deliver a wide range of human services to vulnerable populations. Services delivered include child welfare, public health services, substance abuse treatment, shelter for the homeless, home care for disabled or mentally ill, children with physical/mental problems, family support programs, adoption programs and other social services. EOHHS
Background – Rate-Setting Process Some providers have contracts with multiple Departments and thus have to negotiate and execute separate contracts with each department, with different reimbursement rates being set for the same services by different departments. Every fiscal year, EOHHS negotiates with thousands providers individually regarding the Department-specific contracts. The procurement process is unnecessarily time-consuming and costly, with much potential for efficiency improvement.
Background – Chapter 257 Chapter 257 of Acts of 2008 gives EOHHS the authority of determining the fair salary distribution of the services providers. Within a four year timeframe, EOHHS and DHCFP will work to streamline the contracting process and procurement cycles in general, including cost analysis and rate development of similar types of services. Secretariat Master Agreements¹ will be used to enable every provider to just have one Master contract that can be applied across POS Departments. A panel of qualified members of the provider community will be invited. Chapter 257 will transform the current cost reimbursement system to a unit rate prospective rate system. ¹ The “Master Agreement” is an existing, more flexible OSD purchasing and contract management framework.
Chapter 257 Reform (illustration) Providers Purchasing Department Purchasing Department Purchasing Department Purchasing Department Purchasing Department Purchasing Department Providers Dept Secretariat Master Agreements
Dept Dept Dept Dept Dept Dept Dept Source: Chapter 257 of the Acts of 2008. Provider Information & Dialogue Session: Family Stabilization Service Class
Analytic Methodologies Outline To develop a database of salary cost of the POS system Outliers identification andexclusion General salary cost review Regional Variation Impact Analysis Departmental Variation Impact Analysis Policy implications
Data Source FY08 and FY09 UFR Schedule B EOHHS region Map - Islands, Boston, NE, SE, West, Central MA Town & City Cost of living index Massachusetts Minimum Wage Law
A fair salary distribution across region and purchasing department is critical for providers to retain the quality staff, keep organizations in good financial health, stabilize the human service industry and deliver quality human services.
Salary rates for knowledge-intensive positions are obviously higher than low-knowledge-intensive positions. Similarly, the variations are higher in knowledge-intensive position.
For most staff categories, the average regional salaries are strongly associated with the market-based cost of living expenses. Factoring regional differences into POS rates would result in consistently lower rates for some regions and higher rates for others.
Policy Implications (Continued)
The departmental reimbursement rate is closely associated with the population size it serves and the financial health of the purchasing dept.
Departmental preferences for Doctorate and MA level staffs could explain most of the variation in Medical and Clinical staff salaries.
Departments and providers frequently comment that many of the Direct Care position titles are interchangeable and vaguely defined. A reworking of the UFR Direct Care titles and definitions may be helpful.
More study is needed to ascertain whether departmental salary variations within a staff category or position reflect differences in staff qualifications that are not captured in the UFR, or inequity between departments