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Bethesda Calls on State to Ease Financial Crisis Affecting Social Service Providers

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Watertown, Wis. (May 7, 2008) – Representatives from Bethesda Lutheran Homes and Services, Inc. and a group of Lutheran advocates from Illinois traveled to the Illinois State Capitol in Springfield last week to ask lawmakers to ensure all people in need in Illinois—particularly individuals with developmental disabilities, senior citizens and children—have continued access to critical social services.

Individuals met with legislators to call attention to a growing financial crisis affecting social service organizations. The state’s reimbursements for most social services have not increased in nearly a decade and the state is currently up to six months behind in paying those reimbursements. Meanwhile, demand for some services has risen, further straining the ability of local social service organizations such as Bethesda to serve the people who need help most.

“We recognize legislators must contend with limited revenue and competing budgetary priorities,” said Dr. John E. Bauer, president and CEO of Bethesda. “But we must support our most vulnerable residents, people with nowhere else to turn.”

Like other social service organizations, Bethesda has cut costs wherever possible in an effort to preserve services. In meetings with legislators on April 16, Bethesda and a group of approximately 200 Lutheran activists called on the General Assembly to enact a modest 3 percent increase in reimbursement rates for social service organizations operating under contract with the state, an increase totaling about $200 million. If approved, it would represent the first widespread adjustment in reimbursement rates since 2000.

The meetings were held in conjunction with Lutheran Day, an annual gathering of Lutherans to advocate for people in need. The group also called on legislators to make additional investments in social services funding as new state revenue becomes available.

Lutheran Day sponsoring organizations included: Bethesda Lutheran Homes and Services, Inc.; Lutheran Social Services of Illinois (LSSI); Lutheran Child and Family Services (LCFS); Bethel New Life; Lutheran Life Communities; Advocate Health Care; Lutheran Senior Services; Mosaic; Concordia Avondale Campus; Saint Luke Ministries; Zion Development Corporation; and Lutheran Advocacy-Illinois.

In addition to asking for reimbursement rates that more closely reflect the cost of providing services, the group called on the state to make good on hundreds of millions of dollars in unpaid reimbursements for services provided up to six months ago. The state comptroller’s office estimated the amount of unpaid bills at $2.7 billion as of January 1, nearly two-thirds of which was owed for social services and health care, according to the Chicago Tribune. The situation led the Tribune to label the state as a “deadbeat” in a recent editorial.

In Illinois, state government has a long history of partnering with private organizations to provide vital social services. These public-private partnerships have become the primary mode through which the state delivers human services to people in need.

As reimbursement rates have remained stagnant in most service areas, rising electric rates, fuel costs, rents and health insurance premiums have strained already tight budgets. Virtually all social service providers are now compensated far less than their actual costs of providing services. And in addition to inadequate and late reimbursements, some social services agencies report increasing demand over the past year in connection with the flagging economy.

Now in its second century of service, Bethesda Lutheran Homes and Services, Inc. provides services and supports to individuals with intellectual and developmental disabilities throughout the country and around the world. Bethesda offers many different types of services for individuals and their families, including a variety of residential facilities, supported-living programs, outreach services and training workshops.

For more information on Bethesda’s services and support programs, call the public relations office at 800.369.4636, ext. 3817, or e-mail: pr@blhs.org.