UPDATED: See below.
Friday afternoon the blog Beyond VSH published the story that once again the feds have denied certification of Vermont State Hospital. The details are that the hospital has been decertified by CMS, the federal Centers for Medicare and Medicaid Services, almost continuously since 1993, which means that the state isn't eligible to get Medicare or Medicaid payment for the patients there. In cash terms for the budget, this decision blows an $8 million hole in the budget out of the VSH operating costs of about $23 million a year.
This is kind of a big problem, because budget writers – both in the administration of Gov. James Douglas and in the Legislature – assumed that the hospital would regain certification and be eligible for Medicaid and Medicare money in fiscal year 2011 which begins in July. Yes, we were banking on that money to make our budget next year.
It should also be a political problem for the Douglas administration because of the way they slow-walked the news to the Legislature.
The administration got the news late Thursday afternoon. Early Friday afternoon, in the course of his testimony in Senate Approps, Mental Health Commisioner Michael Hartman mentioned the loss of certification, but made no broader announcement of the decision from CMS.
A little later, around 3:00, the House was debating final passage of the budget, still with no announcement of the denial of certification until it came out on the floor.
So in other words, the Douglas Administration had the information for twenty-four hours and said nothing to the House, or to the Appropriations Committee, even though they knew this news would affect the budget that was going to be on the floor the very next day.
UPDATE: It's even worse than it sounds.
Hard to believe, but GMD has heard from Rep. Anne Donohue that the Administration's tactics went beyond just being dilatory on releasing the information. Thursday evening, after the state had the letter from CMS denying recertification, the House Democratic Caucus met to talk about voting on the budget.
Douglas's Administration Secretary Neale Lundeville and Finance Commissioner Jim Reardon came to the Democratic caucus to support Shap Smith on not delaying the budget vote. Did the caucus hear a word from Lunderville and Reardon about the decertification? Nope. They left that for the chance to sandbag Martha Heath on the floor Friday.
There's other coverage of the certification news, and why they didn't get certified, and it's definitely worth reading, but today I have a couple of other questions.
First, what the hell were they thinking? They knew they had a decision from the feds that was going to add $8 million to the state budget shortfall and they didn't go to the House, which was debating the budget, or to the House Appropriations Committee, which was presenting the budget on the floor of the House. Did they think that it just wouldn't come up? Did they really think they could slide this one by? They had to know that it woud come up before the Senate got the bill, so they'd have to deal with it anyway. Can't anybody here play this game?
Second, when is this going to start costing Douglas? The Hospital has been decertified almost continuously since 2003, or almost the entire time that Douglas has been governor, and his administration has essentially done nothing about it. At least, nothing but waste time, come up with unrealistic and unfeasible plans, and we're no closer to a replacement for VSH than we were seven years ago. You walk around the State House and legislators of all parties are openly scornful of the idea that the administration has any kind of plan to do anything, anytime.
And the cost to Vermont's taxpayers? It's hard to say, but a rough estimate of $50-80 million is probably in the ballpark. Any ideas what else we could be doing with that money if we hadn't had to take it out of the General Fund to patch the State Hospital budget?
If the total lack of leadership isn't entirely the responsibility of Douglas and his appointees, whose fault is it? As much as any other issue, Douglas owns this one. yet as far as I can tell, Douglas has been able to get away with treating this whole disaster as though he is as much a spectator as anyone else. Could the truth really be as simple as what I heard a Democratic representative say recently? People just don't care enough about VSH and the people it serves for it to make a difference?
And my last question: What are the Democratic candidates for governor going to do about it? They all spoke at a debate on mental health and substance abuse issues last Monday night (not sure if an empty chair was provided for Dubie), but we didn't have this news then. I wasn't at the debate, but I understand that nobody had a particularly compelling proposal for how they'll deal with the crisis that will still be sitting on their desk next January. It seems that this is an opportunity to demonstrate a reality-based understanding of our situation, compassion for the people who are locked up in the current facility, and a vision for the future. Those all seem like good things for a Democratic governor, don't they?