In 2021, 206 Developmental Disability service providers went out of business. 

If you have seen our billboard, then you know we are serious about getting our story heard.

St. Coletta of Wisconsin is one of the oldest service providers for individuals with developmental disabilities in the state. We care for almost 400 individuals and employ another 440 people, most of whom are in direct care roles as Direct Support Professionals (DSPs).

Roughly 75% of the people we serve are funded through the Family Care system, which is compromised of State and Federal Medicaid/Medicare dollars. 

Annually, the funding dollars move through the state and into the Managed Care Organizations (MCOs) that are contracted with Wisconsin DHS to disseminate funds to service providers, like St. Coletta of Wisconsin.  Capitated rates are set by an actuarial firm each year as a guide for rates but MCO’s are given power to negotiate any way they chose. 

Often times, each individual contract has to be negotiated and renegotiated when acuity and needs change. Many times, contracts don’t allow us to break even and we lose millions of dollars on care. Left to fundraise the difference. This amount is around $3 Million annually.

What troubles us, is the ability for the MCO’s to retain huge profits that collaboratively exceed $100 million annually of tax payer money just for being the conduit for funds. They do not perform any care functions like medication passing, toileting, transportation, etc. all these services are done at the service provider and are performed for BELOW cost.

Executive tier leadership at the MCO’s can make in the upwards of $300-500k annually and these expenses come out of the bottom line prior to reporting their huge profits. Where is the justice in all this? While it may be allowed per their contracts to keep these dollars, we have to ask- is this ethical?