Ohios Behavioral Health Businesses Neil Tilow Talbert House - - PowerPoint PPT Presentation

Economic Recovery for Ohio’s Behavioral Health Businesses

Neil Tilow Talbert House President/CEO

A Quick Look at the Numbers

• Talbert House

– Mission is empowering children, adults and families to live healthy, safe and productive lives – Operates within five service lines: Addictions, Community Care, Community Corrections, Housing and Mental Health – Served over 24,200 clients face to face with an additional 80,200 receiving prevention and hotline services with almost 800 case managers, counselors, nurses and doctors providing care to our clients

• Talbert House’s behavioral health revenue loss equals $700,000 in Q4.

– $150,000 in additional PPE costs – 7 weeks cash on hand – Over 500 employees and therefore not eligible for federal stimulus funding

• This equals a 20% revenue loss for Talbert House.

– Other providers across Ohio are not this “lucky.”

BH Association Member Surveys

• The Ohio Council conducted

a survey of members from 03/30-04/2/2020.

• 125 member organizations

responded, which represents almost 80% of membership.

• 85% of members have less

than 500 employees

• The Ohio Association of

Recovery Providers conducted a survey of members from 4/9- 4/13/2020.

• 35 member organizations

responded to this survey, which represents 83% of membership.

Overall service delivery and revenue remains 21% – 50% below budgeted amounts even with the transition to telehealth.

• 100% of survey participants are accepting new outpatient admissions

and 70% are accepting admissions for all services.

• 78% are providing most services by telehealth, 50% have maintained

usual office hours, and 40% are continuing community and home- based care as needed.

• 57% have suspended all in-person group counseling services, 36%

have suspended IOP/PHP and/or Day Treatment, and 7% have suspended residential treatment admissions. Note: All while the opioid epidemic continues to impact Ohio

Operations

The total number of anticipated layoffs based on current

• perating status is expected to almost double to 1664

FTEs in the coming weeks.

• 57 organizations reported already laying off or furloughing staff.
• A total of 869.18 FTEs have already been laid off or furloughed. This is

an increase of over 400 additional staff laid off or furloughed since an initial report on 3/20/2020.

• Administrative staff, school-based clinicians, and office-based clinicians

were to most likely to be laid off.

Staffing

Using all available cash management strategies, including loans and lines of credit, over 52% of survey respondents indicated they will run out of funding options within the next 4 payroll cycles.

• 9 organizations reported they can only cover their current payroll expenses

and another 16 organizations have 1-2 payrolls.

• Over 53% of organizations report they have less than 45 days cash on
• hand. Over 68% report having less than 60 days cash on hand. Layoffs and

furloughs reduce expenses and are extending available cash flow.

Financial Impact

A Look At Solutions

Five Common Sense Solutions for Short and Long Term Recovery for Behavioral Health Businesses

Recommendation #1

• Require Ohio Medicaid to invoke the authority granted to it in

HB 197, by authorizing increased reimbursement rates to behavioral health providers as recognized “COVID-19 providers”

– Cost neutral for the State using the recent 6.5% increase in Ohio’s FMAP – Accomplished very quickly with an emergency rule filing by Ohio Medicaid – Provides a rapid influx of funding to allow for continued service delivery and access to care during the pandemic

Recommendation #2

• Continue expanded access, modalities and Medicaid

reimbursement for telehealth after the emergency passes

– 78% of providers and their clients have transitioned to telehealth successfully over the last three weeks – Organizations have made significant investments in technology and training, which should not go to waste – Telehealth will be an even more viable option when Ohio is open for business and patients can access wifi hot spots more readily

Recommendation #3

• Pass HB 580 (Patton, Liston) to require commercial insurance

coverage of telehealth services

– This would impact about 14% of Ohio’s population, which is not covered by an ERISA plan, Medicaid or Medicare – Talbert House’s payor mix is less than 5% commercial insurance

Recommendation #4

• Require Medicaid Managed Care Plans to reimburse behavioral

healthcare providers immediately on receipt of claims, with a reconciliation process on the back end

– Ohio Medicaid data shows that 90.6% of all “clean claims” are paid by the Managed Care – Plans currently have 30 days to pay claims, resulting in a significant delay in cash flow for providers – On average, Talbert House receives payment from the MCO Plans 55 days after claim submission

Recommendation #5

• Pass HB 365 (G. Manning) to allow for a more rapid workforce

expansion once the pandemic is over

– Revises the requirements to qualify for a chemical dependency counselor II license by recognizing experience in the field or academic preparation – Ohio’s behavioral health businesses have had a consistent workforce shortage problem during the ongoing opioid epidemic; HB 365 will help – Passed unanimously out of the House Health Committee on January 15, 2020

Final Thoughts

Behavioral Healthcare is Healthcare. We are essential to Ohio’s healthcare system.

• Our employees are an often invisible first responders and front line that get

people into treatment and keep them in recovery.

• When we succeed, we are doing our part to reduce emergency room, other

hospital and physician utilization.

• When we succeed, your communities are safer.
• Behavioral health businesses need your help today and into the future to

continue as valuable healthcare partners in your communities.

Thank you for your service and for the

• pportunity to present

today. Please contact me with any follow up questions: Neil F. Tilow President/CEO 2600 Victory Parkway Cincinnati, OH 45206 513-751-7747 x 1001 Neil.Tilow@TalbertHouse.org