Michigan State University Receives $25M Grant to Help Train Direct Care Workers

Michigan State University in East Lansing received a $25 million federal grant aimed at addressing the state’s critical shortage of direct care workers (DCWs) by establishing a Direct Care Career Center.
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MSU is spearheading an effort to educate the public on the value of direct care workers. // Stock photo

Michigan State University in East Lansing received a $25 million federal grant aimed at addressing the state’s critical shortage of direct care workers (DCWs) by establishing a Direct Care Career Center.

Administered by the Michigan Department of Health and Human Services, the grant uses funds from the American Rescue Plan Act.

The center’s goal will be to increase pathways into the field and help change the public’s perception of direct care work by demonstrating it is a respected profession.

DCWs provide long-term support to individuals with disabilities and older adults. They assist with hands-on care and tasks needed to maintain as much independence as possible.

According to MSU, paid direct care assistance beyond what families can provide is often a necessity, but there is a dire shortage of people trained to do this kind of work.

Employers are facing serious challenges in hiring and retaining staff, says Clare Luz, faculty researcher in the department of Family and Community Medicine in the MSU College of Osteopathic Medicine. Luz is also founding director of AgeAlive, which connects MSU and the community to support and enhance research, education, and services related to aging.

About 190,000 DCWs currently are serving the state’s residents and at least 36,000 more are needed, says Luz. The school’s Impart Alliance group has been studying the issue.

“Impart Alliance is tackling a problem faced by all of us, including our parents, our partners and, ultimately, ourselves,” says Luz. “The U.S. and Michigan’s populations are rapidly aging, which is creating a greater demand for high-quality, lower cost supports, and services at home, where most people prefer to live for as long as possible in their later years.”

The shortage is largely due to low wages, a lack of benefits, and the absence of guaranteed hours, training, and respect, all of which lead to economic insecurity for DCWs and costly turnover rates, say Luz.

Employers now are shuttering their doors, cutting back services, and turning people away, which is putting lives at risk. The turnover rate among DCWs exceeds 80 percent annually, with an average annual cost of over $170,000 per agency.

“We need more DCWs, but we also want competent DCWs who know how to provide support safely and with respect and who like their job and plan to stay in it,” Luz says. “Evidence clearly shows that a stable, trained, professional direct care workforce can result in higher worker satisfaction, lower turnover rates, and better health outcomes including fewer falls and emergency department visits.”

The importance of addressing all reasons for the shortage simultaneously as they are deeply interconnected, says Luz.

Michigan now is positioned to do this thanks to “a strong network of leaders from across the state” including a statewide DCW Advisory Committee, co-chaired by Luz. It’s met regularly since 2020.

Together, they have made progress including raising pay rates, establishing competency guidelines for DCWs, pursuing credentials, and developing a set of Michigan-specific recommendations for action, says Luz. The network has stakeholder representation from across all supports and services settings, programs and populations served.

The grant will be guided by a four-point plan that focuses on establishing:

  • DCW training and credentialing program, trainer and supervisor training, apprenticeship program, and a set of new recruitment strategies to reach nontraditional populations and career success models to improve recruitment and retention.
  • Marketing/job placement plan to support a DCW public awareness and recruitment.
  • Worker retention and supportive technology fund that will assist providers with childcare, tuition and transportation assistance, and new technologies to allow people to receive basic services remotely.
  • Evaluation component to determine program impacts and outputs at the one-year mark and identify specific areas for quality improvements that can be implemented the following year.

“Strengthening the direct care workforce has been a focus of the state for several years,” says Elizabeth Hertel, director of the Michigan Department of Health and Human Services. “These dedicated individuals assist with daily tasks that enhance the quality of life for those they serve including personal care, household, and clinical tasks and even companionship. We look forward to the Direct Care Career Center helping increase the number of workers in the state.”

Luz says she believes by bringing these coordinated, strategic efforts together, the Direct Care Career Center will be established, and “Michigan will not only make unprecedented strides toward successfully addressing the DCW shortage” but will also serve as a model for the nation.

“Other states are taking notice,” Luz said. “What is happening in Michigan is exciting and something to be proud of.”

To ensure this initiative meets the variety of needs of Michigan residents and addresses the gaps in direct care, IMPART Alliance partners with more than 100 organizations around the state.

Read more news from the IMPART Alliance here.