Worcester Business Journal

wbjournal.com | February 20, 2017 | Worcester Business Journal 9 Aging population & student loans For the nonprofit healthcare and social services industries, there's a dif- ferent set of challenges. Mike Hyland, president and CEO of Sturbridge-based Venture Community Services, said raising wages can be hard because the organization gets most of its revenue from gov- ernment sources like Medicaid. Unless reimbursement rates rise, it's difficult to give raises to direct care workers who provide services like home care for people with disabilities. The problem is poised to get tougher, with forecasts predict- ing major growth. "That's because the popula- tion is aging," Hyland said. "The fact is, we don't have enough peo- ple to do that work now." Even more concerning, Hyland said, federal officials are eyeing a possible change to the Medicaid program to transform the funding into a block grant for states, likely reducing the money available to pay workers. Hyland said rising student debt is a concern, as it limits the options of new college graduates. "In order to pay off student loans, they need to be working in an industry that pays more, or they need to work more than one job in this industry," he said, adding the second option often leads to burnout. Despite these issues, Hyland said ris- ing wages are ultimately a good thing for workers and for the region. "We're all in favor of higher mini- mum wages and stuff like that," he said. "We need more money in people's pockets." Boston-level prices Alexandra McNitt, exec- utive director of the Chamber of Central Mass South, said companies' ability to respond to rising wages varies a great deal by geography and industry. "If you're a large business netting profits in the mil- lions of dollars, you're in a position to absorb that," she said. "But that's not our world." Among her members in South Worcester County, McNitt said, most are sole proprietors struggling with issues like rising health insurance costs. Meanwhile, potential employees see they could find better pay in the Boston area, or even in Worcester city. "People in this area don't want to pay Boston prices for the products and ser- vices," she said. "That's part of why peo- ple live out here. But employees are pretty much demanding that level, so that's causing some hardships on small businesses." W MHI-MS-Q1EMPLOYERAD-2017-02-01-ALL EMPLOYERS TAKE ON THE HIGH COST OF HEALTH INSURANCE. OFFER YOUR EMPLOYEES HIGH VALUE & QUALITY HEALTH CARE AT LOWER COSTS Start at MinutemanHealth.org or contact your broker. Alexandra McNitt, executive director, Chamber of Central Mass South

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