Many people know that Richland Opportunities, Inc. (ROI) provides recycling opportunities for much of Richland County. Or area residents may know that ROI provides group homes and an apartment complex for people with developmental disabilities. ROI does all of the above and more. ROI’s mission is to provide services to adults with developmental or intellectual disabilities. This support is provided by staff working with people in their homes, at their place of employment or by providing transportation. However, most people do not understand how ROI is paid to provide this range of services and the need for legislative action.
ROI is a private nonprofit agency that contracts with the State of Montana’s Department of Public Health and Human Services. The contract is paid through a rate reimbursement system for essential services to those with developmental disabilities and every two years as part of the legislative process, the rate of payment is established. This rate is set in House Bill 2, which renders financial support for the Department of Public Health and Human Services. In the 2011 legislative session, Medicaid rates were reduced by 3.2% or back to rates paid in July of 2008. This decrease has had negative impacts on ROI and its services.
Usually when a business has to cut costs, there is an option to reduce employee’s hours. Because ROI’s rate is tied to a specific number of staff hours, ROI cannot decrease the number of staff hours, cut their hours of service or close their facilities. ROI does not have the option of requesting mill levies or increasing tuition to cover shortfalls as schools or higher education do. Though there was a decrease in ROI’s budget, the costs for providing services have risen and these costs have been further hastened by the demands of the local economy. ROI completed a comparison of our current costs versus the costs in July of 2008. The significant percentage of cost increases are overtime hours - 298.83%, staff recruitment—32. 6%, fuel costs – 10%, food costs – 27.9%, housekeeping supplies – 36.94%, gasoline cost - 47.5%, and rentals – 144%
The increased costs have impacted ROI immensely. However, the increase in costs and decrease in budget is only part the whole scenario in Sidney. In October, the Retired Senior Volunteer Program completed a telephone survey of local residents. The survey results estimated the average cost of living in Sidney at $2,939 per month with ROI paying an average wage of $1,666 per month. ROI has increased staff wages by 8% since 2008, but the lack of increase in the rate has lead to a severe hiring disadvantage for ROI. Currently ROI is spending 99% of the money earned through the contact to staff wages and benefits.
Until 2010, ROI was one of the top 10 private employers in Richland County, employing an average staff of 45. At this time, ROI has a workforce of 32, a decrease of 30% of their necessary staffing and this has placed a huge burden on ROI. ROI has paid 550 hours of overtime per month for the last year, in order to receive the full rate that is allowed ,. The decrease in the rate reimbursement has devastating consequences for ROI. When asked about what the community could do, Cindy Eleson, ROI’s executive director responded, “ First let me thank the community for their support. With the community’s assistance in financial donations and gifts in kind, we have been able to enhance the lives of people who we support. Now we need people to contact the legislature. The more people who contact their legislators about ROI and its need, the more likely there will be a positive response. If people need more information, please call me at (406) 488-3341 ext. 4 or email at [email protected].”
Reader Comments(0)