Settlement filed in social service provider dispute case
A settlement reached between the Baker administration and social service providers to resolve a nearly year-old lawsuit over payment rates would provide retroactive salary increases for social workers if new rates are not established by the end of June.
The agreement, which was filed for approval with Superior Court Judge Mitchell Kaplan on Monday, establishes new target dates to set rates paid to social service providers that contract with the state.
Providers without newly set rates by June 30 would receive an additional 3.75 percent onto the base of their contracts for fiscal 2015 to be paid in fiscal 2016. Should some providers still not have adjusted rates by June 30, 2016, the increase would carry over plus an additional payment determined by a cost adjustment factor.
The settlement stems from a lawsuit filed last summer by a coalition of human and social service providers against Gov. Deval Patrick's administration for failure to implement a 2008 law designed to update payment rates for providers of rehabilitation, education, and workforce training services for the first time in almost 30 years.
The new rates, including extensions granted by the Legislature, were to have been updated by January 2014, but the coalition claimed only 68 percent of the rates had been reviewed and updated. The Patrick administration contested that claim, but did not disagree that its process was still ongoing.
Judge Kaplan in January ordered Gov. Charlie Baker's team to comply with Chapter 257 within 90 days, but later that month granted a reprieve to give the new administration more time to negotiate the terms of a settlement with the providers.
Vic DiGravio, president of the Association for Behavioral Healthcare, said the settlement is still pending, but is confident the judge will sign off.
"It's a good deal for us and a good deal for the Commonwealth. It would have cost much more if they had to fully pay by July 1," DiGravio said. "The Commonwealth has not complied with the law and as such providers should be eligible to receive interim cost of living adjustments while the Commonwealth works toward complying with the law."
Under Chapter 257, all provider rates are scheduled to undergo biennial reviews after they are updated. The terms of the agreement call for providers to be paid and additional .45 percent for rates that are less than two years overdue for review, and 1.9 percent for those more than two years past their review date.
The agreement runs through July 1, 2017. However, the amount of services purchased over the next two years will depend on agency needs and budgets, according to the administration.
"The administration is pleased to have reached an agreement resolving the implementation of this legislation and looks forward to working together with the social service providers and dedicated caregivers who are focused on the safety and welfare of the Commonwealth's children, elders, disabled and others in need," said Rhonda Mann, spokeswoman for the Executive Office of Health and Human Services.
Health and Human Services Secretary Marylou Sudders and Developmental Services Deputy Assistant Commissioner Dana Roszkiewicz negotiated the settlement with Ron Ardine, administration and finance director of The Key Program, Vinfen CEO Bruce Bird, Community Healthlink CEO Deb Ekstrom and Bay Cove Human Services President Bill Sprague.
Last July, Patrick administration officials said $1.68 billion, or over 75 percent of the $2.2 billion in purchased services covered by Chapter 257, had been brought under new rates. The fiscal 2015 budget dedicated $203 million to Chapter 257, including $153 million for rate increases.
The fiscal 2016 budget approved by the House last week included an additional $30 million toward Chapter 257 rate increases.
DiGravio the total cost of the settlement will depend on how fast the Executive Office of Health and Human Services can complete its rate reviews, but he said he's confident the additional $30 million set aside in Baker's budget proposal and the House budget proposal would be sufficient to cover fiscal 2016 costs.
The coalition behind the lawsuit included the Massachusetts Council of Human Service Providers, the Association for Behavioral Healthcare, the Association of Developmental Disabilities Providers, Massachusetts Early Intervention Consortium and the Children's League of Massachusetts.
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