Provider warns Ottawa County board of dire staffing and funding strain; Heritage Homes seeks 18% rate increase

During public comment, Dawn of Heritage Homes told the board her agency has sought an approximately 18% rate increase to specialized residential rates and said recent funding changes have felt like a cut: "We have essentially experienced a cut," she said, describing pass-throughs that previously supported direct-care staff and that the agency has tried to absorb for two years.

Dawn urged the board and county to explore avenues to shore up provider finances, warning that without additional support agencies may be forced to give notices to residents they can no longer serve. She said she would follow up with written details for the board.

Board members and committee reports referenced a separate, staff-led interim step: the finance committee recommended a 3% increase for specialized residential rates for new residents as a partial measure to bring some providers closer to pre-millage funding levels. Speaker 3 characterized the 3% as a temporary step while the board and region work on longer-term changes to the rate calculator and funding model.

The board acknowledged the structural pressures facing providers and agreed staff should continue work with the regional entity and state officials on funding and rate-calculation approaches. No formal county-wide supplemental appropriation was approved during the meeting; the finance committee action is an incremental adjustment intended to lessen immediate strain while broader advocacy and analysis continue.