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Provider Organizations Report Severe Hardships Due To COVID-19

By ARRM Admin posted 05-03-2020 23:00

  

Last Friday (May 1), ANCOR released results from a nationwide survey they conducted of provider organizations in April1. The objective of the survey was to quantify the extent to which the COVID-19 pandemic has affected community providers that support people with intellectual and developmental disabilities. ARRM conducted a survey of its general membership in March that asked about similar issues. The results were quite consistent.

A large percentage of provider organizations reported that they have had to close or suspend at least some of their program services due to the COVID-19 pandemic, thereby forfeiting the related revenue. This was slightly more prevalent among ANCOR members, possibly because they represent a higher proportion of day service providers.

A majority of ANCOR member organizations also reported significant staffing-related expenses for things like increased overtime, on-boarding new employees, many with fewer qualifications, and adapting training to fit distancing requirements. ARRM members expressed concerns about added expenses due to increased staffing needs because of the closure of day services, increased program costs to keep clients engaged 24 hours a day, and higher overhead expenses.

Finally, many organizations are concerned about surviving the pandemic. On average, organizations reported having just over a month of cash on hand, which illustrates the need for some type of financial assistance for the industry.

ANCOR Survey
(National)

ARRM Survey
(Minnesota)

Closed/suspended programs

68%

60%

Increased staffing costs

52%

N/A

Cash on hand (months)

1.2

1.4

ANCOR and ARRM are working hard individually and with partners to advocate for financial and regulatory relief so that providers will be able to provide the support needed by the thousands of people they serve through the current pandemic and beyond. For updates and action alerts, look for information on these channels:

1 The ANCOR survey report can be accessed at https://www.ancor.org/sites/default/files/impact_of_covid-19_on_organizations_serving_individuals_with_idd.pdf

--Ken Bence, Director of Research, Analysis and Policy

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