Excerpt from: New Richmond News (click for full article)
Last year, when the region’s managed care organization (Community Health Partners) slashed reimbursement rates, local officials worried that they’d have to dip into reserves to pay for programs.
A new MCO took over the region this year, reinstating previous reimbursement rates. But the county was given a year to adjust its programs or raise revenue, because reimbursement rates are set to be scaled back again in 2014.
According to Fred Johnson, director of the Health and Human Services Department, the expected operational loss for St. Croix Industries in 2014 could be about $340,000. This year’s loss is projected to be $92,000.
Johnson urged the HHS Board members to think about possible solutions to the situation. He said the county could choose one of three options: 1) Supplement the St. Croix Industries programs with general tax levy dollars; 2) Cut programs, or wages and benefits for employees, to reduce expenses; or 3) Farm out the vocational and training program to a non-profit service organization.
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