Testimony submitted to the Senate Human Services Committee from
Bruce A. Suardini, CEO, Prairie Center Health Systems, February 24, 2011
My name is Bruce Suardini, CEO of Prairie Center Health Systems, with locations in Urbana, Champaign, and Danville. I am also the Vice President of the Illinois trade association representing substance abuse agencies within the State of Illinois, IADDA. Our agency is a medium-to-large provider of the full continuum of substance abuse services. We serve approximately 5,000 individuals annually. Our services include Prevention programs in schools within three counties, Outpatient, Intensive Outpatient, Residential and Medically Monitored Detoxification. We have 85 employees, and our budget is approximately $4.8 million, of which we have a contract with the Division of Alcoholism and Substance Abuse (DASA) for approximately $2.3 million. Of this amount, $1.345 million is General Revenue Funds (GRF).
Last Friday, February 18th, our IADDA Board was notified by Secretary Saddler of the Department of Human Services that all our contracts with DASA will be amended effective March 15, 2011. The letters were to be sent out Tuesday, February 22nd, notifying agencies of their GRF allocation adjustments and other contract amendments for FY11. We learned that all GRF funding for sate services would be cut 100% or approximately $28 million for the remainder of the year. This action would effectively shut down operations or have significant impact on programs, but would ultimately deny access to care for some 55,000 treatment clients and approximately 229,000 students who receive prevention services.
Our programs would have to immediately discharge clients from care and lay-off approximately 6,000 employees should this occur. In communications with many of our agencies’ CEO’s, they state they have plans to implement this reduction in staff and services immediately.
This decision by the Governor of the State of Illinois has blind-sided our entire system of care. IADDA supported the Governor’s income tax increase proposal, and we supported our fair share of the cuts. However, to eliminate 100% of our funding and to dismantle the system of care to only Medicaid recipients is unconscionable.
Prairie Center Health Systems has put into effect a plan to close our Medically Monitored Detoxification, Residential, and outpatient services. Our Prevention staff will be cut, and we estimate approximately 51 staff positions will be eliminated immediately upon official notice of the contract amendments. The lay-offs will cost the State in unemployment benefits approximately $42,000 per month. Most of our employees will no longer have medical benefits because they will not be able to afford COBRA, and a number of employees will now qualify for Medicaid. What did the State save in the long run?
We also know that for every $1 spent on treatment, we save approximately $9 in healthcare costs and worker productivity. Do the math: $55 million spent on substance abuse now will save the State $495 million in future costs. We also know the impact of the savings to treat people in the community versus sending them to prison. The ratio is approximately 1:5, with the average costs to treat an individual being $4,500 compared to $25,000 to incarcerate. Approximately 60% of our clients come from some sort of corrections background. Without our services, including closures to Drug Courts, it will cost you to build prisons and to hire additional staff, over the anticipated 125 corrections officer positions in the FY12 budget proposal. Do the math.
Let me close by saying that we also know that for every four families in our State, at least 1 has had the experience of a family member in need of substance abuse treatment services. Apply this ratio to the legislative body, as we know some of the members understand recovery. I hope and pray that when the time comes when you or your family need our services, our services are there for you!
