As most of you are aware by now, SCAN Long Term Care has left the ALTCS market, and thousands of assisted living residents must be transferred to another Program Contractor. While SCAN will pay through the end of April, AHCCCS requires that all new providers be selected by March 31, 2012. Who should your residents select, and how much will you be reimbursed are two questions all of us who accept ALTCS are asking. None of the reimbursement rates equal our cost of doing business. As the cost of doing business increases, and ALTCS rates decrease, fewer and fewer AL homes are taking ALTCS residents. On top of this, AHCCCS is initiating a $523 application and renewal fee per facility. That means The Terraces pays the same fee as our small 5 - 10 bed facilities. It seems that Assisted Living Homes are being squeezed out of the ALTCS market. And we are. The reasons are many: large facility contracts are easier for Program Contractors to manage, the care of residents appears more stable in AL Centers, there are fewer with whom to negotiate in larger facilities, and AL Homes cost more to program contractors, just to name a few.  

An independent assessment of our ALTCS future will be presented at the AALHA Conference on March 7, 2012. Be prepared to hear the hard truth about Assisted Living Homes and ALTCS. If we, as an industry want to continue to serve the ALTCS community, we need to hear what Gene Dameron has to say at the AALHA 2012 Annual Conference. This is a "must attend" session!

So, where do we go from here? The future is ours to make or break. AALHA has an ALTCS Task Force delving into ALTCS issues. There are things we can do, or not do, that will make or break Assisted Living Homes taking ALTCS residents. Simply stated, we must unite, and we must do a better job of managing our ALTCS residents. We will keep you posted on our progress, both with the SCAN matter, and with ALTCS reimbursement rates in general. We have a great deal of work ahead of us, and we must present a professional and unified front.

The 2012 AALHA Conference theme is "Moving into the Future." Don't be left behind. Attend the conference and learn what the future is for ALTCS in Assisted Living Homes. It is a perfect networking opportunity to start the discussion. See you there!

Gaile Perry Dixon, owner of Dreamcatcher Assisted Living Homes and AALHA Board Member.

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The Mediation started at 11:30 am, and after brief introductions, the mediator split them off into two separate rooms, where they remained until the conclusion.  Initial demand by the plaintiff attorney was $1,000,000 which was the policy limit for the Assisted Living and the defendant's initial offer was $150,000.

At the start, both sides laid out their positions and their strong points. Over the next few hours, the standard mediation dance ensued, with the plaintiff lowering their demand, and the defendant bumping up their offer by increments.

 After approximately 6 hours, it became apparent the magic figure was $500,000. Co-counsel for defense then asked the mediator if he could talk to the plaintiff's attorney alone, and after 15 minutes, they emerged with a firm settlement figure of $485,000. The costs to defend this claim had it gone to court would have been around $50,000; however, by settling through mediation defense was only around $5,000.

As shown by this horrendous case above, MEDIATION, is an effective tool in resolving legal disputes.

For your FREE Guardian Mediation Kit including a DVD explaining mediation and a sample Mediation Agreement , Email Kathi@pcalic.com, visit our website at www.pcalic.com or call 1-800-673-2558.