Inter-Departmental Correspondence

Department of Hospital and Clinics



May 16, 2002


June 4, 2002



Honorable Board of Supervisors


Nancy Steiger, Chief Executive Officer



Amendment to Salary Ordinance 03987; Long Term Care Wage Pass-Through



Introduce an Ordinance amending the salary ordinance adjusting the Long Term Care Wage Pass-Through legislation for eligible employees at San Mateo County Health Center and waive reading of the ordinance in its entirety.



Effective August 1, 2000, Welfare and Institutions Code Section 14110.6 requires the California Department of Health Services to increase rates to all long term care facilities and to include a wage pass-through to improve the quality of care for nursing home residents by requiring affected facilities to increase wages, salaries and benefits of their employees who provide direct patient care. This includes registered nurses, licensed vocational nurses, nurse assistants, plant operations and maintenance, housekeeping, laundry and linen, and dietary staff. Supervisory and non-hospital staff are not eligible for the pass-through.

The total amount to be passed-through is calculated by multiplying the per diem increase the facility receives by the number of Medi-Cal patient days in long-term care. The California Department of Health Services will conduct audits of facilities to ensure that the rate increase

has been passed on to employees providing direct patient care. A facility that fails to comply will be liable to make restitution to the Medi-Cal program, and to pay a penalty equal to ten percent of the Medi-Cal funds not distributed.

The Hospital estimated the wage pass-through for FY 2000-01 to be approximately $197,000, which equates to $1.25 an hour.



Current review and preliminary audit findings indicate that there is an additional $7,527 to be distributed from FY 2000-01. To disburse these additional funds, it is requested that the hourly rate be increased .66 per hour and will be paid retroactively for the hours worked from August 1, 2000 through July 31, 2001.

Based on this updated calculation, the rate for FY 2001-02 should be adjusted to $2.50 an hour effective April 28, 2002 to meet year-end projections.

Funds cannot be used for any other purpose and once depleted, the wage pass through will cease.

County Counsel and Employee and Public Services has reviewed and approved this memorandum and ordinance.


Vision Alignment

This agreement keeps the commitment to Ensure Basic Health and Safety for All and goal number 8: Help vulnerable people - the aged, disabled, mentally ill, at-risk youth and others - achieve a better life. The agreement contributes to this commitment and goal by increasing the wages, salaries and benefits of employees who provide direct patient care ultimately improving the quality of care in long term care facilities.


Fiscal Impact

There is no increased net county cost as a result of this action. Should the funds not be disbursed, they would need to be returned to the State with a 10% penalty. If the number of hours unexpectedly increases, funding would cease upon depletion of the fund.