Proposition 206 and minimum wage increase will hurt assisted living homes
Yesterday, on November 30th 2016, assisted living home organizations and assisted living home owners met in at the Hilton Hotel in Chandler, AZ to discuss the impact of the recently passed Proposition 206 on the Assisted Living Home industry in Arizona. Even with the extremely short notice of an "emergency meeting", turn out was great; which speaks to the impact this legislation is having on our industry.
A panel consisting of the following assisted living professionals gave initial impact statements regarding Proposition 206 and the adverse effects it will have on small assisted living businesses and the clients they serve.
Nhor Latinovich - Assisted Living Homes Organization (ALHO)
Melisa Noriega - Assisted Living Homes Organization (ALHO), San Judas Assisted Living Home
Susan Archer - AZCAL, Caveo Assisted Living Home
Gaile Dixon - AALHA, Dreamcatcher Assisted Living Home
Proposition 206 mandates an increase in the hourly wages paid to caregivers working in assisted living homes in the state. Assisted living home businesses have struggled to maintain economic viability in recent years due to increased regulation, reduced compensation from state medicaid programs, and declining fixed incomes of their clients. Proposition 206 will become the latest of these challenges that will ultimately impact community elder care resources in our community by prompting more assisted living home closures and/or increased rates for elderly clients living on fixed incomes.
An open forum was provided for attendees who spoke and asked questions about the implementation and possible changes to the proposition. The panel and attendees concluded the meeting with the decision to form a committee to; draft a letter to Governor Ducey outlining the impact of Proposition 206 on the assisted living community and its clients, and explore options to sponsor amendments to the proposition in the upcoming legislation.
Kristy Siefkin from FOX 10 and Jared Dillingham from 3 Family and KPHO/KTVK attended and provided coverage for the event. We appreciate their efforts to help us educate the community on our industry and this important issue.