Funding Application Guidelines - Healthcare Workforce Initiative - Incumbent Worker Training Program -
Targeted Industries - Healthcare

A Project of the Maryland Department of Labor, Licensing, and Regulation, Governor's Workforce Investment Board

I. Background and Information

In Maryland, as in the rest of the Nation, a crisis exists in the form of a healthcare workforce shortage. The Maryland Governor's Workforce Investment Board (GWIB) recruited employers, State licensing boards, education representatives, the U.S. Department of Labor, the U.S. Department of Defense, and allied State agencies to form a Healthcare Workforce Steering Committee charged with implementing a cluster-based approach to the healthcare workforce shortage, the GWIB Healthcare Workforce Initiative.

The Healthcare Workforce Steering Committee researched current and projected healthcare industry workforce demands in Maryland, as well as best practices from around the nation for alleviating the drastic healthcare workforce shortage. On August 28, 2003, over 160 participants representing over 650 employers from the healthcare industry, State educational systems, licensing boards, and relevant State agencies attended the Governor's Healthcare Workforce Summit in Annapolis. At this Summit, the participants debated the previously researched workforce strategies and built consensus for an action plan. One chosen strategy is to upgrade the skills of current workers employed in Maryland healthcare provider institutions.

The United States Department of Labor awarded $700,000 to the Maryland Department of Labor, Licensing, and Regulation (DLLR) to support Maryland's effort to help fund incumbent worker training programs that address workforce shortages in the healthcare industry. Federal grant funds are available to provide matching funds to the healthcare employer that develops training activities for incumbent workers in allied health occupations.

II. Purpose of Program

Funds are available to businesses to train incumbent workers for occupations that address documented workforce shortages in the healthcare industry. The Incumbent Worker Training Program is intended to be responsive to business needs as well as provide appropriate and effective occupational skills training for existing workers. The incumbent worker program allows current workers to obtain skills in the healthcare professions, leading to potential career growth and increased wages. In addition, once a current worker has advanced, their former position is left vacant for a new worker to fill.

This initiative is modeled after the innovative Maryland Business Works program. Maryland Business Works was implemented in September 2003 with $1 million of funds from Maryland's Performance Incentive Award from the Federal Workforce Investment Act (WIA). Employers participating in the Maryland Business Works program are required to match funding for upgrade training activities that assist their employees in moving up the career lattice from entry-level positions to family-sustaining jobs.

III. Program Eligibility and Target Criteria

Funds are specifically targeted for training projects with healthcare providers (For-Profit and Non-Profit Sector Employers). All applicants must be headquartered or have at least one permanent physical location in Maryland. Funds awarded to business applicants must be expended on employees working at the applicant's Maryland facilities. Training should be approved only for full-time positions that offer benefits.

Priority will be given to those employers who participated in the Teach for the Health of It program. Consideration will also be given to the geographic distribution of awards across the state.

Training activities must be directly related to healthcare occupations where there is a current documented workforce shortage and/or a projected shortage for the future. Training needs and costs must be reasonable, necessary and clearly related to the purposes and activities of the project as described in a training plan that is developed by the business applicant in conjunction with staff from the local Workforce Investment Area.

The following types of activities and items are allowable training costs:

• Classroom-based training, including training that is designed to meet the specific requirements of a business
• In-house staff training
• Instruction provided by consultants
• Books and training materials
• Initial proficiency testing (for approved curriculum)

Grant funds may be used for up to 50% of the total training costs (70% if the business participated in DLLR's Teach for the Health of It program); the business is responsible for the remainder of the costs. In addition, funds cannot be used for capital costs, purchase of equipment, payment of employee wages and/or benefits while in training, wage subsidies, or support services such as child care, transportation costs, lodging costs and meals for trainees.

Training projects will not be considered if the business is not ready to immediately begin training activities. Business applicants must be prepared to enter into contract negotiations, and immediately begin training upon execution of a contractual agreement with the local Workforce Investment Area. After an award of funds, the business will then take the necessary steps to make provisions for the training of incumbent workers in specific, job-related skills.

IV. DLLR Administrative Procedures

A.  Local Workforce Investment Areas

Funds will be made available to the twelve Workforce Investment Areas in Maryland (see attached list) to develop training projects directly with healthcare providers. Workforce Investment Area (WIA) staff shall work with healthcare businesses in their local jurisdictions to discuss the business plan, training needs and other available business services that are available to support/assist the business. Eligible businesses shall develop projects (training plans), select the most appropriate training vendor, and submit applications for funding directly to the appropriate local Workforce Investment Area using the procedures and processes established by the local jurisdiction. If a healthcare business would like to train incumbent workers in facilities that are in more than one Workforce Investment Area, the business need only apply to one. The Workforce Investment Area staff will make any necessary arrangements with other areas.

Staff from the local area shall review the application to ensure that the proposal meets all of the minimum program requirements established by the State. After the local WIA has certified that the proposal meets minimum program requirements, the application for training funds shall be forwarded by email to DLLR via the normal Maryland Business Works methods. Applicants will be notified of decisions within 10 days after the receipt of application.

Applications and guidelines are available electronically at the following websites: www.mdworkforce.com and www.dllr.state.md.us. Any questions should be addressed to:

Sharon Harris
Department of Labor, Licensing and Regulation, Division of Workforce Development
1100 North Eutaw Street, Room 616, Baltimore, Maryland, 21201
Phone: 410-767-2999, Fax: 410-333-5355
Email: hci@dllr.state.md.us

B.  Request for Reimbursement (Payments to Businesses)

The successful healthcare business applicant is responsible for taking the necessary steps to make provisions for the training of its employees in specific skills that address workforce shortages in the healthcare industry. The business is also responsible for providing acceptable documentation to verify successful completion of training and actual payment for training as well as any performance/outcome information required as part of the training plan.

The business applicant shall request payment for 50 percent of the training costs from the local Workforce Investment Area (70% if the business participated in DLLR's Teach for the Health of It program). Prior to receiving reimbursement of the training costs, the business must provide the following:

• Proof of successful completion of the approved training; and
• Proof of payment by the employer for approved training.

C.  Management Information Requirements / Performance Outcome Information

At a minimum, the business participants shall be required to track and report the following information regarding trainees and training activities:

• Names and Social Security numbers of trainees;
• Type(s) of training programs /courses taken by each individual; and
• Training completion information for each individual including the acquisition of a recognized certification, credential and/or other positive outcomes such as promotion/wage increase information.