No substitute for state control when it comes to looking out for mentally disabled, taxpayers

By SHERRY HALBROOK
One of the most important things that's lost when state services are contracted out is quality control and accountability.

That's why PEF is pushing so hard to get funds added to the state budget for state-operated programs and state staff to provide quality assurance in the governor's proposed New York Cares program to serve the mentally retarded and developmentally disabled.

The need to closely supervise the quality in these state funded programs has been underscored by several reports over the past year on problems in services provided by private contractors.

August '98 -
Last August, for instance, the state Commission on Quality of Care (CQC) - the official watchdog for all state mental hygiene services - reported financial problems at Independent Living Center of Amsterdam (ILC/A).
The center "illegally misapplied Medicaid funds to underwrite an ill-conceived housing development for the elderly bringing the ILC/A to the brink of bankruptcy," the CQC stated in an August 19, 1999 press release.

"The situation has prompted state action to end further diversion of funds, prevent a lapse in services to disabled clients, and to protect elderly investors from the collapsing housing scheme, in which entrance fees of $60,000 and $40,000 paid by two elderly residents may be lost."

February '99 -
On February 4, 1999, the Herald-Journal in Syracuse reported the executive director of the Onondaga Association for Retarded Citizens had resigned after state inspectors cited the agency's day program for serious deficiencies.

Just six days later, the CQC issued another report, this time focusing on Medicaid-abuse problems at the Columbia County Program for Disabled Individuals.

The CQC said Joseph Fricano and his wife ran a 10-bed group home for individuals with autism and other disabilities near Hudson, which was licensed by the state Office of Mental Retardation and Developmental Disabilities.

The CQC said the Fricanos "diverted $752,000 of program funds for personal use through a shell not-for-profit agency to conceal and distribute ill-gotten Medicaid proceeds. Joseph Fricano, executive director and president of the board of directors of Special Needs Program Inc. (SNP), and his wife used fraudulent documents and falsified board records to dominate and control the agency and remain undetected by OMRDD.

"From January 1994 through July 1997, much of the public moneys siphoned off was used for unauthorized salaries, fringe benefits and leased vehicles. In 1997, the couple abruptly fled the agency ahead of an investigation by the commission," the CQC continued in its February 10, 1999 press statement which detailed years of financial abuse and shortchanging of clients and staff.

March '99 -
And just this past March, The Ithaca Journal reported that OMRDD had to take over operation of two group homes in Groton which it had already decertified in January because of health and safety concerns. The homes, which had been operated by the Groton Community Health Care Center, were abruptly restaffed by more than 20 state employees following an undisclosed incident on March 13 that involved the local hospital. Officials there notified local police who launched an investigation.

State control critical
"Certainly most providers, both public and private, are honest, caring and competent," said Greg Case a member of PEF's Privatization Committee and council leader of PEF Division 189 at Central New York Developmental Disabilities Service Office.

"But the clients we serve are not usually in a position to advocate for themselves. They are very vulnerable, and we must make sure the state takes all of the necessary steps to protect both the interests of the clients and the taxpayers.

"Maintaining direct control of programs and the close scrutiny of well staffed quality assurance procedures is the best way to do that," Case said.

Wanted: PEF privatization busters
By Heath Fradkoff

The PEF Privatization Committee seeks nominations for the first ever "Fight Back Against Privatization Award," which will be presented to members who have exhibited outstanding efforts in the fight against privatization.

"We want to recognize the special contributions our members make to fight privatization all over the state," said committee member Mary Lou Vasilev. "Just as PEF rewards members for providing quality services to the public, we feel it is just as important to acknowledge quality service in the fight to defend public services from privatization."

The deadline to nominate members for the 1999 award is September 1 (See nomination form). Contact the Privatization Committee for additional nomination forms or call Mary Lou Vasilev (315) 473-5018 for more information.

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