If approved, the Department will receive up to $2.4 million in State funding from the Department of Health Care Services (DCHS) for eligible employees to receive a retention payment. Although there is no County funding match requirement associated with accepting and administering the hospital and skilled nursing facility COVID-19 worker retention payments, there is a County share in cost, as employers are responsible for associated payroll taxes and administrative costs for the distribution of payments to employees. The Department estimates a 7.65% FICA (6.2% Social Security and 1.45% Medicare Surcharge) impact totaling approximately $184,000 and payroll processing and distribution charges of approximately $256,000, for a total fiscal impact of $440,000. The Department will cover the anticipated employer costs with its existing American Rescue Plan Act allocation.

The Health Services Department remains committed to its mission to care for and improve the health of all people in the county, with special attention to those who are most vulnerable to health problems. In alignment with this commitment, the Department is pursuing opportunities to recruit and retain a skilled health care workforce, which has been an ongoing challenge and notably difficult in the wake of the COVID-19 pandemic.  
  
In an effort to stabilize and retain the existing health care workforce, the Department of Health Care Services is providing one-time Hospital and Skilled Nursing Facility COVID-19 Worker Retention Payments as a result of Senate Bill-184 Health. Chapter 47, signed by Governor Newsom on June 30, 2022, available to eligible staff and physicians that worked within qualifying 24-hour health care facilities.  
  
In December 2022, the Health Services Department, in its role as the conduit between the State and eligible employees, applied for Worker Retention payments through the Department of Health Care Services Worker Retention application portal, for approximately 2,100 current and former employees. Additionally, Health Services is currently in the process of applying on behalf of an additional 639 employees. Pending on the State’s eligibility determination, Health Services estimates approximately 600 of these individuals will be determined to be eligible employees and approximately $600,000 will be received for distribution to these individuals.  
  
On March 27, 2023 the Department received notification that the State determined 1,947 full and part time staff were eligible for the Worker Retention payment. The majority of the adjustments were because the individual had been reported by another entity and payment was issued to that entity.  
  
On April 13, 2023, a check from the State for 1,947 eligible employees was received in the amount of $1,800,500.  
  
Pursuant to the legislation, the Health Services Department is requesting to carry out a State program by serving as a conduit between the State and an estimated 2,547 eligible employees in the administration of the retention payments. If approved, the Health Services Department will accept the COVID-19 worker retention payment program funding on behalf of eligible employees within the Department, and work with the Auditor-Controller to distribute the payments to employees who were employed at least part-time during the qualifying work period of July 30, 2022, through October 28, 2022.  
  
As outlined by the legislation, to qualify for the Hospital and Skilled Nursing Facility COVID-19 Worker Retention Payments, employees must meet an array of criteria, including but not limited to the following:  
* Employee worked within a “qualifying facility” including acute care hospitals (Contra Costa Regional Medical Center);  
* Employee was directly employed by the entity (County) which exercises control over wages, hours or working conditions;  
* Employee was employed full time or part time by the entity (County), or is an eligible physician, licensed in California;  
* Performed in-person work on the site of a qualifying facility during the qualifying work period; and  
* Employee was not a “manager or supervisor” as defined within the legislation.  
  
The Hospital and Skilled Nursing Facility COVID-19 Worker Retention Payments will be available to employees as follows:  
* Eligible employees working full time, at least 400 hours in-person during the qualifying work period, will receive up to one thousand dollars ($1,000);  
* Eligible employees working part-time, at least 100 hours but less than 400 hours in-person during the qualifying work period, will receive up to seven hundred and fifty dollars ($750); and  
* Eligible physicians will receive up to one thousand dollars ($1,000).   
  
Approval of this recommended action will authorize the Department’s acceptance of Hospital and Skilled Nursing Facility COVID-19 Worker Retention Payments funding for eligible employees, and the subsequent disbursement of the funds to eligible employees within 60 days of receipt of the funding from the State. The County may not appropriate the funding for any other use and the County will return any funds to the State Department of Finance.

If not approved, eligible employees will not receive Worker Retention Payment funds, and the Department will have to return Worker Retention payments to the State.