In 2013 and 2014 Florida stopped paying institutions and caregivers for services they provided to the aged and disabled. Now Florida hands over their budgeted dollars to corporations who pay the same institutions and caregivers, less about 20% for overhead and profit. The name of the system is the Statewide Medicaid Managed Care Long Term Care. Whew....
Does anyone really believe today that a private industry has such brilliant analytical skills, technology, and strategies that they can increase the well-being of our vulnerable population if we will just give them 1/5 of the pie? I don't believe it.
It didn't turn out well for ALF operators and residents when the direct payment to facilities went down overnight from $1200 to $1100 each month. If an ALF with 15 residents loses revenue of $1500 a month then caregivers hours get cut. That is direct care that is not provided. It is out of the system. It is not made up somewhere else. It has been eliminated. Care not given!
But across town in an office park a start up managed care company signs a lease, hires contract negotiators, care managers, and marketing personnel. It is a beautiful business plan with predictable monthly income. One fiifth of everything!