Providers tell subcommittee rate boosts and predictable adjustments are needed to stop staffing collapse

Multiple providers used the Human Services Subcommittee hearing to press for reimbursement and wage changes they say are necessary to recruit and retain staff.

Colin McKinney of Starkey and others described persistent vacancies and said a 2022 rate increase temporarily improved hiring but that staffing shortfalls reemerged as costs rose. Starkey reported about 85 vacancies among roughly 460 funded positions and said a 10% increase could permit meaningful wage progression to retain employees.

Hal Oberholzer of Maxim Healthcare asked for a $5-per-hour increase to specialized medical care for TA/IDD waiver nursing, estimating the state cost at roughly $1,700,000 in general funds using prior fiscal notes. He said specialized medical care in the home parallels acute-care hospital services and that higher rates would improve recruitment and retention.

Providers pointed to a 2024 PCG rate study commissioned by KDADS as a guidepost for appropriate rates; witnesses told the committee the study indicated costs that would support materially higher daily rates for group living and other services so agencies can pay competitive wages. Several providers also warned that a new state hospital will draw staff away by offering higher pay, amplifying urgency for predictable rate adjustments.

Speakers emphasized how previous rate increases were used to raise base wages and stabilize operations. Rachel Newman of COF Training Services said her agency invested 100% of every rate increase into direct-care wages and that modest increases are stretched to retain staff. Colin McKinney said the rate study suggested an average cost near $310 per day for group living, while his organization receives somewhat more than half that amount.

The committee asked providers for documentation and indicated it would follow up with KDADS on the rate study and fiscal notes. No vote occurred; the subcommittee said it will review written materials and fiscal estimates before advancing recommendations.