Budget Cuts Threaten Care  For Louisiana s  Most Vulnerable Citizens  We Have Solutions

Budget Cuts Threaten Care For Louisiana s Most Vulnerable Citizens We Have Solutions PowerPoint PPT Presentation


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We are a coalition of 75 agencies throughout Louisiana that provide support to persons with developmental disabilities.Among Louisiana's oldest and most respected provider groups, we serve over 8,500 persons with developmental disabilities and employ approximately 11,000 people.. To return to prev

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Budget Cuts Threaten Care For Louisiana s Most Vulnerable Citizens We Have Solutions

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1. Budget Cuts Threaten Care For Louisiana’s Most Vulnerable Citizens We Have Solutions!

2. We are a coalition of 75 agencies throughout Louisiana that provide support to persons with developmental disabilities. Among Louisiana’s oldest and most respected provider groups, we serve over 8,500 persons with developmental disabilities and employ approximately 11,000 people.

3. We have historically worked with the Department of Health & Hospitals and the legislature to assure that programs for the elderly and disabled are of high quality and cost effective. We support the DHH needs-based services plan (Resource Allocation Model). We feel the savings (estimated to be $100 million) will be far greater than the percentage of the current & proposed rate cuts, and therefore, THE CUTS WOULD NOT BE NECESSARY!

4. In addition to the proposed rate cuts in the Executive Budget, the following cuts were implemented in February 2009:

5. As providers struggle with the current rate cuts, the DHH has told the legislature that the following ADDITIONAL rate cuts will be imposed upon providers for FY 09-10:

6. The DHH service reduction initiatives will result in further lost revenue to providers 25% Reduction in OAAS’s Support Hours (based on a target reduction from 56 to 42 hours per week max. per person) 30% Reduction through OCDD's Resource Allocation (based on a target reduction from $70k to $50k per person) Providers CANNOT SURVIVE the combination of rate cuts AND these DHH expense reduction initiatives! Our fixed costs will continue, regardless!

7. Besides the Previously Mentioned Issues, The $2 wage pass through of 2007 did not add to any agency’s budget. This was a pure flow through to support staff. The increase in minimum wage will go into effect July 1st. Therefore, staff wages cannot be reduced in order to help providers cope with the cuts.

8. If private providers cannot survive the cuts, every other option for their care will cost the state even more. This chart shows the services we provide cost substantially less than those provided by the state programs.

10. If REASONABLE alternatives are not considered, the combined effect of these cuts and the Resource Allocation Model would be a substantial reduction in revenue for operations. That would mean: Programs will be eliminated resulting in discharges of people with disabilities from programs. Quality of care to individuals would be sacrificed. Transportation for outings and connecting people with their communities would be drastically slashed.

12. How would the rate cuts combined with the Resource Allocation Model impact employees? Programs may well be eliminated! Significant layoffs! Staff pay raises could not be given. Employer paid benefits such as holiday, sick leave, insurance coverage, retirement contributions, etc. would be in peril. There would be a negative spiraling impact on employees. Good qualified people will leave the field of services to the elderly and disabled, GUARANTEED!

14. Please understand, the cost to the State of Louisiana would not go away! If Our Employees are Laid Off, they may be forced to: apply for unemployment benefits apply for food stamps and perhaps welfare enroll their children in Medicaid’s LaChip have their now uninsured family members utilize the parish health units and Charity Hospitals to receive health care.

15. We realize the state faces a tough financial situation

17. We are a coalition of the agencies listed below. Oak Ridge Community Home - Colfax Options, Inc. - Hammond Pecan Grove - Pineville Preferred Living - Welsh Res Care – New Orleans Robinswood – Lake Charles Southern Ingenuity - Homer Special Education District # 1 - Cut Off St. James Arc - Vacherie St. John the Baptist Human Serv – B.R. St. Mary’s - Alexandria STARC - Slidell Terrebonne Arc - Houma The Arc of Morehouse - Bastrop United Cerebral Palsy - New Orleans VOA - Baton Rouge VOA - Greater N.O VOA - Shreveport

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