*** UPDATE *** From a press release…
TOPINKA: DEVELOPMENTALLY
DISABLED WILL BE PRIORITIZED
Comptroller orders immediate payment for programs
SPRINGFIELD – Illinois Comptroller Judy Baar Topinka on Tuesday announced that she has directed her staff to prioritize payments for day programs, child group homes, community living facilities, and other programs serving the developmentally disabled.
The direction from the state Fiscal Officer comes after the Department of Human Services notified service providers of payment delays caused by an insufficient appropriation in the Fiscal Year 2012 budget. The Department noted that payments would not be processed until after July 1, and then be subject to ongoing state payment delays.
Topinka said her office will immediately begin making payments when the new fiscal year begins July 1.
“Those serving the Developmentally Disabled should know that we will make their payments as soon as the information reaches our door,” said Topinka, noting her policy of prioritizing payment for the state’s most vulnerable residents. “People literally rely on these programs for survival, and they will take priority.”
Topinka noted that while services for the Developmentally Disabled will be prioritized, her office today has more than 164,000 unpaid bills totaling $4.4 billion to businesses, schools, hospitals and service agencies throughout the state. When additional bills at state agencies are added in, including $1.5 billion in past due Medicaid payments, the state bill backlog reaches an estimated $8.5 billion.
[ *** End Of Update *** ]
* As you already know, the Quinn administration is defending itself against charges that it is needlessly and perhaps even dangerously rushing transfers of developmentally disabled state facility residents to private group homes. And now, the Quinn administration is admitting that providers of services for the developmentally disabled won’t be paid this month…
The state of Illinois has informed developmental-disability providers that it can’t pay them for a month of services this fiscal year.
Service providers, such as Developmental Services Center in Champaign, were notified by letter from the Department of Human Services on Monday. Here is a link to the letter.
Department officials could not be reached for comment this morning, but Kevin Casey, director of the division of developmental disabilities, states in the letter that pediatric intermediate care facilities will experience about four-and-a-half months delay in funding.
Among those services that won’t be fully paid for the current fiscal year ending June 30 are child group homes, community living facilities, therapies, equipment, training and individual support services.
From the letter…
The deferred payments will not be processed until after July 1, 2012, and after the State Fiscal Year 2013 budget is finalized. When the payments are submitted in FY13, they will still be subject to the ongoing delays at the Comptroller’s Office based on the receipt of State revenues.
Please be aware that this deferral of payments will delay all DD payments, including those to Providers with an Expedited Payment status. Expedited payment status serves to expedite the release of payment requests submitted to the Comptroller’s Office. Because DHS will be unable to submit the deferrals to the Comptroller until FY13, all deferred payments will be delayed
Sheesh.
- amalia - Tuesday, Jun 19, 12 @ 12:08 pm:
I know a man whose family will be thrilled when he moves into a group home as has long been his desire. it will make him feel like less of a child and more like the age he is because he currently lives at home and has a care giver. but he goes to a work facility with other developmentally disabled folks and that part of his life is very satisfying. that center closed very suddenly…funding stream….and he will still have that lost even if he gets into a group home soon. it’s very upsetting for him, his family, and those who know him because as confusing as it is for all of us to understand, it’s way more heartbreaking for those who live it.
- Freeman - Tuesday, Jun 19, 12 @ 12:23 pm:
So who is responsible for oversight and protection of these individuals? DHS & the Governor’s office have consistently and willfully ignored reasonable concerns about the timetable and planning for these moves, and lack of payment won’t exactly help matters.
Perhaps the Attorney General’s Disability Rights Bureau?
It sounds like one possibility based on their job and department description.
- Give Me A Break - Tuesday, Jun 19, 12 @ 12:31 pm:
Freeman: This is a funding issue.
- Esteban - Tuesday, Jun 19, 12 @ 1:45 pm:
I wonder if Illinois would qualify for foreign aid from Canada or Mexico.
- gathersno - Tuesday, Jun 19, 12 @ 1:50 pm:
The Governor’s rebalancing initiative is not going to collapse just because of this late payment. Community service providers have been experiencing delayed payments for some time now and yet manage to maintain their services to meet required standards of care. The late payment law will eventually reimburse them for the interest they may pay in using their lines of credit to get over the lean periods.
- Earnest - Tuesday, Jun 19, 12 @ 2:02 pm:
Not specifically related, but a good read on government “defunding” of ineffective or outmoded programs. Please excuse my lack of HTML coding skills.
http://www.nesta.org.uk/library/documents/ArtofExit.pdf
- Hawkeye - Tuesday, Jun 19, 12 @ 2:41 pm:
Wondering why I just bought a new house in Illinois.
- Freeman - Tuesday, Jun 19, 12 @ 2:42 pm:
Hi GmaB. It is indeed a funding issue. Fortunately the budget as passed left money in to fund these facilities. Will be interesting to see whether the good Governor decides to proceed with the closures anyhow.
My concern was who is responsible for ensuring the safety and well being of these patients from a legal persepctive if the administration is dropping the ball and the AFSCME calims are indeed true? Who is responsible for ensuring these patients are being treated in accordance with the law and DHS is living up to their responsibilities to these patients? The OIG? The Attorney General? Not sure.
- Give Me A Break - Tuesday, Jun 19, 12 @ 2:57 pm:
Freeman: There are several groups watching this process. Equip for Equality, Gaurdinship & Advocacy Commission and a large group of providers as well the OIG. Maybe AFSCME would like address how LDC and Howeboth lost their federal status while AFSCME members staffed both Centers. Problems exist on both sides of the issue, but for AFSCME to claim people are going to be tossed into the streets or die as soon as they move is simply wrong.
- Brendan - Tuesday, Jun 19, 12 @ 3:10 pm:
Further proof that the only thing Quinn knows how to run, is his mouth.
- Freeman - Tuesday, Jun 19, 12 @ 5:04 pm:
=== to claim people are going to be tossed into the streets or die as soon as they move is simply wrong ===
I urge you to read Anne Shannon’s June 30, 2009 report commissioned by Gov. Quinn regarding the closure of Howe Developmental Center.
One portion from page 7 stands out as particularly relevant:
“Some parents/guardians are concerned about “transfer trauma” (that loved ones will die because of a transfer). From Jan. 1, 2007 to May 20, 2009, 88 residents were transferred from Howe. From Jan. 1, 2007 to May 31, 2009, 8 of those residents died. Since 3 of the 8 deaths were anticipated when the residents were transferred, 5 out of 85 residents (5.9%) potentially died from “transfer trauma.” From Jan. 1, 2007 to April 24, 2009, 24 of 1,000 residents died while at Howe (2.4%). Thus, “transfer trauma” potentially caused the death rate to rise from 2.4% to 5.9%.”
Her report was thorough and objective. In fact, she correctly notes that additional details and a larger sample size would be necessary to verify causation with certainty.
But when families express concern that a poorly planned move may indeed harm their loved one, perhaps fatally, they are not “simply wrong”. They are basing this upon legitimate cause for concern.
- steve schnorf - Tuesday, Jun 19, 12 @ 6:01 pm:
As Casey famously asked…
- OhPlease - Tuesday, Jun 19, 12 @ 6:53 pm:
@gathersno - “The Governor’s rebalancing initiative is not going to collapse just because of this late payment. ”
It’s time to stop letting the governor and his machine have a pass with this term. “Rebalancing Initiative”? The state of Illinois has failed to adequately fund all types of developmental disabilities services for over a decade. Community programs are funded at significantly lower rates than in other states. It’s a fallacy to suggest that this is because the money is just going to the wrong place (and hence in need of “rebalancing”). The state needed to - and needs to - step up and actually fund all of it’s services at an appropriate level. This “initiative” is just an (unfortunately, effective so far) attempt to foster infighting amongst the different types of DD services in hopes that no one will notice that *everyone* is getting screwed.
“Community service providers have been experiencing delayed payments for some time now and yet manage to maintain their services to meet required standards of care.”
So… providers have gotten by without us paying them before. So it’s just fine to continue not paying them over the longer term, right? Because there’s no ethical or practical reason to pay people what you owe them in a timely fashion. You do realize that’s what you said there?
“The late payment law will eventually reimburse them for the interest they may pay in using their lines of credit to get over the lean periods.”
The late payment law does pay interest on payments delayed more than 90 days. Of course, it’s only *1% interest*, a rate far lower than the rate the agency or provider will incur when borrowing money to cover the delays in payment. Hardly a reimbursement - more like a minor defraying of a much larger cost.
And it’s worth noting that 1% is far lower than Illinois itself would be able to borrow at in order to pay her bills. So, instead, they are essentially borrowing from providers at below market rates. There is absolutely no incentive for the state to pay in a timely fashion.
Incidentally - just to add insult to injury that 90-day timeframe was recently increased from the prior 60-day timeframe. So now the state can essentially gain an additional 30 days of services for free before incurring their virtually non-existent penalty.
- dave - Tuesday, Jun 19, 12 @ 7:49 pm:
**Her report was thorough and objective. In fact, she correctly notes that additional details and a larger sample size would be necessary to verify causation with certainty.**
So in other words, the conclusions of her report are not very reliable, because of a) a small sample size, and b) not controlling for other relevant factors. Great.
**And it’s worth noting that 1% is far lower than Illinois itself would be able to borrow at in order to pay her bills. So, instead, they are essentially borrowing from providers at below market rates.**
Pretty sure you don’t understand how the late payment interest works.
- OhPlease - Tuesday, Jun 19, 12 @ 8:00 pm:
@dave - pretty sure I do. The payments are, in a word, paltry.
I’ve been in the position of loaning the state my services for some time now.
- Freeman - Tuesday, Jun 19, 12 @ 8:37 pm:
@dave - you clearly haven’t looked at the report, have you? It’s very easy to find online.
And before one dismisses an entire report based on the measured, responsible analysis in one paragraph concerning one issue, consider that the evidence at hand indicates those death were likely due to “transfer trauma”. It would be insincere, however, for anyone to take such a small sample size and use it to conclusively state just about anything… almost as insincere as suggesting that approaching things in a measured, responsible fashion instead of jumping to conclusions nullifies an entire report.
Regardless, Governor Quinn never followed up on the report’s findings or suggestions. That is one reason why some of these concerns linger. So, at least we have that going for us.
- mark walker - Tuesday, Jun 19, 12 @ 10:19 pm:
I have liked JBT’s statements and actions so far, but this seems like political grandstanding.
Many of the services financially supported by the state would in fact be life-threatening if sharply discontinued, not just these. I can support setting past due payable priorities based on “life-critical” immediate needs, but this is treacherous ground and requires very tight definitions. Almost everyone thinks their program need is critical and immediate.