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Developmental center could lose millions in funding

BY NANCY HICKS / Lincoln Journal Star
Thursday, Mar 06, 2008 - 08:04:18 pm CST
The Beatrice State Developmental Center could lose more than half its $51 million annual funding because of continued violations of federal standards.

The institution that cares for Nebraskans with serious developmental disabilities stands to lose about $28.6 million in federal funding.

A federal inspection team, which has been at the center for the past 11 days, issued three immediate jeopardy sanctions, meaning it saw specific serious problems in client protection and physical environment.

The center also failed in four of eight general compliance areas: client protection, facility staffing, active treatment and governing body.

This is at least the fourth time the center failed to meet federal standards. In September 2006, it failed all but one of the eight criteria. In a follow-up inspection in April 2007, it failed two, according to state Department of Health and Human Services spokeswoman Jeanne Atkinson.

In November the center again failed in four areas, and the Centers for Medicaid & Medicare Services said the center would lose federal funding unless there were improvements.

During the recent inspection, the Centers for Medicaid & Medicare Services team confirmed the Beatrice center would lose its federal funding Friday. The state has appealed that decision, and funding will continue during the appeal process, Atkinson said.

Staff members took immediate steps to correct the jeopardy issues and all were withdrawn before federal surveyors left on Thursday, according to a news release.

The agency is not releasing specifics on the immediate jeopardy findings until the state gets a letter from the Centers for Medicaid & Medicare Services, probably early next week, Atkinson said.

Despite the continued concerns of federal inspectors, clients at the Beatrice center are safe, said John Wyvill, director of the Division of Developmental Disabilities for Health and Human Services.

At a recent meeting of the center’s leadership team, Wyvill said he had asked, “Are our clients safe? And they all said yes.”

As part of continuing efforts to reduce the number of clients at Beatrice, the state will eliminate the on-campus hospital that is home for four long-term patients by May 1, Wyvill said Thursday.

That will save $1.9 million and free up nine nurses and nine direct-care technicians to work in other living units, he said.

The Centers for Medicaid & Medicare Services made it clear that the state Health and Human Services Department needs to address staffing shortages, Wyvill said.

Beatrice “has to be smaller, in terms of number of clients,” he said.

The plan includes closing two living units and moving their clients into other living units, and continuing to find placements for clients in community programs.

The number of clients at the center has dropped from 329 in December to 308 this week. The goal is to have 100 fewer clients by the end of the year, Wyvill said.

The state is also beginning a search for professional organizations to provide on-site consulting, training services and leadership to gain compliance with the federal conditions, according to the news release.

Health and Human Services has a contract with Liberty Healthcare, national experts on federal standards and accreditation standards.  Three to 14 Liberty Healthcare staff members have been on site every day for the past six weeks, according to the news release.

State leaders believe there is always room for improvement and appreciate the Centers for Medicaid & Medicare Services’ review, “but that doesn’t mean we agree with all the findings,” Wyvill said in a news release.

“We want to work collaboratively with CMS but will litigate if necessary,” he said.

Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.

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