Wage Hikes, Labor Shortages Put Hospices Between a Rock and a Hard Place

Posted Monday, May 9, 2022

 New York recently passed their budget for 2023, and it requires that home health and hospice aides to be paid at least two dollars an hour over minimum wage.  These dedicated workers deserve the increase but without additional reimbursement to help cover the cost providers are going to struggle.

“The impact to hospices could be substantial, especially if they haven’t already been increasing their minimum wages to attract a workforce,” Jeanne Chirico, president & CEO of the Hospice and Palliative Care Association of New York State (HPCANYS) told Hospice News. “To be hit with this bottom-line cost could essentially erode what’s already a very nominal margin for many providers, many of which are considered smaller nonprofit hospices.

The lag time for the wage index likely means most providers would not recoup the increased labor expenses in the near term, which would be unsustainable for some organizations, according to Chirico.”

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