Friday Update: June 18, 2004

Report Finds Wisconsin Faces $224 Million Budget Shortfall Now - $742 Million Next Session
Senator Mike Ellis (R-Neenah) released a report earlier this week that shows Wisconsin’s Medicaid program faces a budget shortfall of $224 million this biennium, meaning the Medicaid program will run out of money in April 2005.  In addition, the report projects a structural deficit for the 2005-07 budget between $160 million and $742 million.  If tax revenues do not grow, the state faces a $742 million shortfall.  However, if revenue increases annually by the projected 5% growth rate, then the state could face a lesser shortfall of $160 million.  Senator Ellis is demanding that the legislature be called into an extraordinary session to budget (reduce program spending) to deal with the immediate Medicaid shortfall and also to deal with the impending budget shortfall in 2005-07.  However, it is unlikely the Senate and Assembly will return in a special session.  Rather, it is more likely that the legislature will deal with the budget problems in January 2005 with a special budget repair bill.

DHFS Hires New Bureau of Quality Assurance Director
DHFS announced this week the new Director of the Bureau of Quality Assurance Cris Ros-Dukler, effective June 21, 2004.  Cris is currently working with the Division of Children and Family Services as a Facilitator of a statewide planning partnership with counties, tribes, advocacy groups, consumers and other stakeholders in the child welfare arena to improve child welfare outcomes.  She has a Masters of Science in Educational Psychology from the University of Hawaii.  Cris’ experience and background include:  Served eleven years as the Deputy Director for the Texas Department of Protective and Regulatory Services in Austin; Cris also worked for the Texas Department of Human Services working for eight years as an Assistant Commissioner managing different critical functions; Five years as UPC Health Network’s Executive Director of Operations for Wisconsin and Illinois, and; Served as the Regional Vice President for Lutheran Social Services (LSS) for the Northeast region and Upper Michigan for two years.

DHFS Hires News Legislative Liaison and New Publications & Events Coordinator
DHFS announced two key staff changes in the Secretary’s office this week.  Ron Hermes will become the new DHFS legislative liaison effective June 28, replacing Gary Radloff.  Ron was recently a contract lobbyist with “Tenuta and Hermes” lobbying firm, representing many healthcare interests including: Health Insurance Association of America; Brown & Williamson Tobacco; Delta Dental Plan; Wisconsin Perfusion Society; and, Wisconsin Physical Therapists Association.  Gary Radloff has been hired as DHFS’ Publications and Events Coordinator.

Senate Committee Holds Hearing on Expansion and Mandatory Enrollment of SSI Managed Care
The Senate Health, Children, Families, Aging and Long-Term Care Committee will hold a public hearing on Thursday, July 8, 2004 at 9:00 AM at the State Capitol in Room 411-South.  The hearing will be held on Mandatory enrollment in managed care plans for MA recipients who receive SSI.  The hearing is being held due to objections raised by advocates of the mental health community who have concerns about expanding SSI managed care to other counties in the state and the provision that would mandate enrollment in Milwaukee County.  These provisions were passed into law last year in the Wisconsin Budget and were projected to save the state approximately $14.5 million (GPR) in this current biennium.  Any losses incurred because of the delay of these provisions would be in addition to the current $224 million budget shortfall DHFS faces in this biennium.


Legislative Hearing Notices

Joint Legislative Audit Committee
Tuesday, June 24, 2004   10:00 AM   State Capitol, Room 411-South
Audit Report – Assisted Living and Nursing Home Regulation Report – Public hearing.

Senate Health, Children, Families, Aging and Long Term Care
Thursday, July 8, 2004   9:00 AM   State Capitol, Room 411-South
Public Hearing on SSI Managed Care.  Mandatory enrollment in managed care plans for MA recipients who receive SSI. (The 2003-05 budget directed DHFS to require adults who are eligible for SSI to enroll in managed care plans. Invited speakers include individuals from DHFS, HMOs, advocacy groups and the LFB.)


Important Dates to Remember

Wisconsin Council on Long-Term Care
July 9, 2004
August 13, 2004
September 10, 2004
October 8, 2004
November 12, 2004
December 10, 2004

Wisconsin Council on Long-Term Care
Residential Options Task Force
June 18, 2004
July 16, 2004
August 20, 2004
September 17, 2004
October 15, 2004
Noveber 19, 2004
December TBA, 2004

2004 Wisconsin Elections
September 14, 2004: Partisan Primary (state elections)
November 2, 2004: Presidential and General Elections (federal and state-wide elections)


Long-Term Care in the News

Milwaukee Journal Sentinel (June 18, 2004)
Report warns of budget shortfalls
State needs $224 million to meet health care costs
The state faces a $224 million deficit in health care costs in the current spending cycle, and must find $742 million more a year to balance the next budget, a new report warned Thursday.
<http://www.jsonline.com/news/state/jun04/237635.asp>

WQOW Eau Claire (June 17, 2004)
Help Wanted: New Operator for Nursing Home
The future of a local nursing home is on the line.  The state plans to revoke Lakeside Nursing & Rehabilitation's license because of 34 violations.  There was a meeting on Thursday about the future of the nursing home.  "The state is committed to keeping the facility open.  We believe that families, residents and the staff needed to ask the questions and receive whatever information they wanted," said Claudia Stine, the Ombudsman Long-Term Care Director.  Lakeside is not closing, but Extendicare, the company that owns the nursing home, has until Sunday to find a new operator.  If it doesn't, the Bureau of Quality Assurance could take over.  News 18 was told on Thursday that Extendicare is close to finding a new operator.
<http://www.wqow.com/news/articles/article_891.shtml>

Wausau Daily Herald (June 17, 2004)
Sisters add quarters to project
MERRILL - Holy Cross Sisters plans to extend its commitment to the City of Parks this fall by beginning construction on an office and residence to house active staff members and sisters involved in its ministries.  The project, which will include one or two buildings, will be built next to Bell Tower Residence, 1500 O'Day St. Bell Tower is a residential facility for the elderly that provides assisted living services. Bell Tower will undergo a $6.5 million expansion and renovation this fall. <http://www.wausaudailyherald.com/wdhlocal/287842636002900.shtml>

Green Bay Press Gazette (June 16, 2004)
Green Bay City Council rejects home for disabled residents
The Green Bay City Council, responding Tuesday to the appeals of west-side residents, denied a request for an adult family home to care for four developmentally disabled individuals on Beech Tree Drive.  Neighbors cited concerns with the company that planned to manage the facility and the effects such use of the property could have on property values.  “We feel like we’re getting this home rammed down our throat,” said Beech Tree resident Susan Athey.
<http://www.greenbaypressgazette.com/news/archive/local_16536652.shtml>

Oshkosh Northwestern (June 16, 2004)
Park View will keep operating
Official: We had to look at all options; closing, selling
A rousing cheer and the roar of applause filled the fourth floor of the Winnebago County Courthouse Tuesday evening.  Supervisors heard from relatives of Park View residents, staff at the county-owned nursing home and community members concerned about the resolution’s impact on their family members. Some went so far as borderline outrage at the idea the board would consider closing the complex.  Supervisor Mark Harris said he didn’t think the private sector would accept many of the 220-plus patients staying at Park View right now.  “Getting out of the business isn’t at all realistic,” Harris said. “No private operation will take patients that they know will cost more than Medicaid will pay.”
<http://www.wisinfo.com/northwestern/print/stories/print_16522108.shtml>

The Arizona Republic (June 15, 21004)
Boom in Group Homes
Last year, the Wisconsin Board on Aging and Long Term Care recommended that state begin phasing out traditional nursing homes in favor of smaller group homes.
<http://www.azcentral.com/arizonarepublic/news/articles/0614grouphomes.html>

Duluth Superior News Tribune (June 15, 2004)
State launches $500,000 grant initiative to sign uninsured
Wisconsin is beginning a two-year program to enroll more than 150,000 uninsured people in Medicaid and BadgerCare.  The "Insuring Healthy Futures" initiative will provide about $175,000 a year in Milwaukee County and $75,000 in another county that has not been chosen, the WellPoint Foundation announced Tuesday.
<http://www.duluthsuperior.com/mld/duluthsuperior/8931202.htm>

Sheboygan Press (June 13, 2004)
Commentary: County responds to group’squestions on nursing homes
All public and private nursing homes face budget challenges. Some private operators have lost money or even filed bankruptcy. County-operated homes have a higher percentage of Medicaid-funded residents, and thus are more greatly affected by restrictive federal and state reimbursement policies, while having less ability to cover escalating costs with other revenue sources. Other county nursing homes face the same problems we do.
<http://www.wisinfo.com/sheboyganpress/news/archive/opinion_16478634.shtml>

Pioneer Press (June 12, 2004)
State to revoke license to operate nursing home
CHIPPEWA FALLS, Wis. - The state plans to revoke the license to operate the largest nursing home in Chippewa County after several alleged health care violations.
<http://www.duluthsuperior.com/mld/duluthsuperior/news/politics/8902874.htm>