ELM CITY CENTER

1314 West Walnut, Jacksonville, Illinois 62650

Off: 217-245-9504 Fax: 217-245-2350

Email: ecc@elmcity.org Web page: www.elmcity.org

Work and Independence for people with disabilities.

April 2003

To All Parents, Families, Friends, Staff, and Guardians of Elm City Consumers,

Some updates on what is happening that can effect your family member or consumer working at Elm City. There are a number of legislative issues coming up that I would like you to write your state reps about. I will get to that soon.

•  HIPAA – Health Insurance Portability and Accountability Act of 1996 was an attempt to simplify the use and solidify confidentiality of personal health information. Computers have made many things easier, but software complexity, hacking, incompatibilities of systems, and lawsuits required a change in how personal information is used. The result is HIPAA. Basically, it requires that providers become obsessive about privacy. Elm City is not a medical program like a hospital/physician practice, but we handle many items of information that are medical issues. As a result, we are required to follow HIPAA rules. The three major documents for HIPAA are:

  • Notice of Privacy Practices

  • Rights of Consumers

  • Protected Health Information

You will see very similar documents every time you go to your doctor or go to the hospital

Elm City has followed the confidentiality rules of Illinois for many years. In almost every situation the Illinois laws are stricter that HIPAA. You do not have to do anything. We have chosen to inform you about these rules for the person you are responsible for at Elm City. This issue can get complicated because many of the people attending our programs have assigned guardians and legally cannot make their own decisions. Please read these guidelines. For the most part they simply describe what can or cannot be done with the information. We are functioning the same as we always have. As we have annual reviews we will be updating the forms and paperwork that we need to. If you have any questions about HIPAA (trust me it can be complicated) feel free to call me. For Elm City, HIPAA comes down to a simple statement “zip your lip, get permission, and know where information is going”.

• DO THE RIGHT THING COALITION - Last year there was a very successful group effort by many people to influence the Illinois Legislature. Do The Right Thing is made up of United Cerebral Palsy of Illinois, Illinois Association of Rehab Facilities, Institute on Public Policy, ARC of Illinois, Don Moss and Associates, and Family Support Network. The purpose is to continue a coordinate effort with the Legislature this year. There is much more about this on our web page at www.elmcity.org. So what can you do? Write a letter or meet with your local legislative representative/senator and express your feelings about the importance of community services. It is important that they hear from you. The size of the financial pie is smaller and more groups (schools, prisons, roads, universities, community agencies) are all asking for more money. In Morgan County the local legislative people are:

• SPRINGFIELD RALLY – On May 7, 2003 there will be a large rally in Springfield to lobby the state reps and keep them up on the importance of what we do. Senator DeMuzio and Rep Watson have done an excellent job working for community services throughout their areas. If you cannot come to Springfield, send them a letter of support. It is all part of politics.

• A QUICK UPDATE ON ELM CITY CENTER:

  • STATE PAYMENTS ARE SLOW – No news there. Our cash flow has been OK (at best) because of the success we have had in working with EMI and Pactiv. Production accounts for almost half of our income. Many community agencies are largely (85%+) funded by the state and they are feeling the crunch of continued expenses while their main customer (the State of Illinois) does not or cannot pay its bills. Revenue to the state is off by almost $5 billion dollars. On average payments are 90-120 days behind when they used to be under 45 days. A larger number of agencies are openly talking about closing programs and services or simply going out of business. Elm City has no plans to close any programs. There is no good solution until the states revenue increases. Blagojevich is looking at bonds and loans (which must be repaid someday), Medicaid match money, and other options to pay bills. Speaker Madigan is really pushing legislation to make sure agencies are paid first, which in turn has not thrilled the nursing home world because they are not included.
  • GOVERNOR’S CUTS – The governor’s budget for next year (starting July 2003) has an across the board cut for all community agencies of 1%-1.25% depending on who is talking. To Elm City it means a cut of slightly under $19,000.
  • HEALTH INSURANCE – Is there a company that has a good answer for health insurance? We are seeing a 21% increase for Elm City for Blue Cross/Blue Shield coverage. This is an $18,000 jump. Staff increases have been double that depending on coverage they chose.
  • WORKER COMP – Comp is going up 45% to about $39,000 and this increase is low compared to other similar groups. Two years ago we paid $13,000.
  • MINIMUM WAGE – The bill has passed the Senate and is moving to the House. We pay consumers working at Elm City commensurate wages, under US DOL guidelines, that are based on similar jobs in the community and their ability to work. However it will cost us $54,000 in increased salaries to the consumers and temporary workers we use to get our jobs done. Salary compression effects what we can afford to pay our staff.

 Add these costs up and before we step out the door for a new fiscal year in July 2003, we are already $100,000 in the hole. That is a 3% cut for us. Add in other operating costs and Elm City is looking at a 5% cut before we do anything. I realize there is no easy solution. Social services have the same basic issues that thousands of Illinois companies have on a daily basis. 

Thanks for your help and everything you have done.

Tom Frederick

President/CEO

An equal opportunity employer.

Revised - 1/15/08