State Plans to Rebalance Long-Term Healthcare, Help Nonprofits

Two ways to turn the tide on Connecticut’s state fiscal woes are by shifting the balance of how long-term healthcare is delivered in the state and expanding the use of quality nonprofits to provide critical services.

Rebalancing

This week, Governor Malloy announced a “Strategic Plan to Rebalance Long-Term Services and Supports” that takes a serious step toward rebalancing healthcare services and reducing state spending on more costly institutional care.

The governor said that up to $72.8 million in federal funding will be awarded to support the expansion of homecare services for seniors and adults with disabilities, which will be combined with a $13 million state investment.

Another important aspect of the plan will be to help Connecticut’s nursing home industry adapt to the changing needs of elders and other adults with disabilities.

In fiscal year 2012, about 56% of Connecticut’s long-term care clients were living in the community, at a cost of only 41% of all long-term services.

According to the Connecticut Institute for the 21^st Century, increasing the long-term healthcare component to 75% home- and community-based care by 2025, could produce $900 million in annual savings for the state.

Nonprofits

Also unveiled this week were plans to set up a $20 million state bond pool specifically designated for nonprofit community-based providers.

The pool will help nonprofits access the capital they need to lower administrative costs, improve their operations, and ensure better delivery of critical services.

According to a 2011 report from the bipartisan Commission on Nonprofit Health and Human Services, Connecticut’s nonprofit community already provides a number of healthcare services to the state at substantially lower cost than if those services were provided by state employees and institutions. 

Turning the Tide

These two recommendations are among several proposed by CBIA, the Connecticut Institute, and others to reduce state spending and improve the delivery of vital public services (presented in CBIA’s report, “Turning the Tide: Fiscal Policy Changes, Best Practices and Ideas That Work”).

For more information, contact CBIA’s Pete Gioia at 860.244.1945 or pete.gioia@cbia.com.