The Human Services Council wrote a report entitled IN THE AFTERMATH OF FEGS that is a must read. I will send it to all executive branch government officials that we work with, as well as a hard copy to every legislator in the state.
The report laid out three major problems with the non-profit industry and made eight recommendations, including reducing regulations, increasing reimbursement and warning providers to be more responsible and avoid contracts with the city or state that do not pay the full cost of services. “We cannot continue to take on endless government contracts that do not pay the real costs of service, nor should we,” the report said. “Providers have to say no, not only to shed light on funding issues, but because these chronic issues eat away at the fabric of the human services delivery system.”
This last quote is key. Although ACL has been successful at getting rate increases from time to time, they are never enough and are never comprehensive. I have often reported to our members that in meetings with the executive branch (DOB, Governor’s Office, OMH) they will ask me why the providers respond to RFPs if the reimbursement is not adequate. I answer that they have waiting lists, people need housing, and they are optimistic that the rates will come up so they do the right thing in the short term. These arguments only marginally work – saying NO, however, will force the rates to go up.
ACL cannot organize a boycott of RFPs – we would if we could but it is an anti-trust violation.
Get the full report here http://www.capitalnewyork.com/article/city-hall/2016/02/8591750/aftermath-fegs-human-service-providers-warn-crisis