DHS wage-and-rate study recommends $1.3 billion annual provider revenue increase; urges standardized rates and transparency

The Joint Ways and Means Human Services Subcommittee on April 8 heard a work session report required by the budget note attached to Senate Bill 5506 (2023) recommending broad changes to how Oregon pays providers that deliver home- and community‑based services. Steven Pawlowski of Burns and Associates, the consultant that conducted the wage-and-rate study, told the committee the recommendations would “increase spending in total, or provider revenue, by $1,300,000,000 annually.”

The study responds to long‑standing concerns about low wages, high turnover and uneven rate methodologies across the Oregon Department of Human Services’ Office of Developmental Disability Services (ODDS) and the Office of Aging and People with Disabilities (APD). The report proposes standardized, transparent rate models tied to assessment tiers, new reporting requirements for providers, and benchmark wage assumptions designed to improve recruitment and retention.

Why it matters: The consultant estimated the proposal’s federal and state mix would produce an annual state cost of about $400 million if fully implemented. Committee members pressed presenters about phased implementation options and the potential budget impact. Burns and Associates and DHS officials emphasized the recommendations are policy options for lawmakers and that final decisions and funding are subject to the Legislature’s budgeting…