State loan to cover caregiver bills

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When Community Health Partners (CHP) closed at the end of 2012, care providers across Western Wisconsin were stuck with unpaid invoices for services provided in November and December.

According to Clark Schroeder, administrator of St. Croix Industries in New Richmond, many group homes and other facilities serving people with disabilities and the frail elderly were put in a financial bind.

“A lot of organizations had to take out loans to make payroll,” Schroeder told the St. Croix County Health and Human Services Board at its meeting.

Early this month, the Wisconsin Department of Health Services announced it would provide a $6 million loan to pay the bills owed by the bankrupt Managed Care Organization (MCO).

CHP managed the care for 2,700 frail elderly clients and people with disabilities under the state’s Family Care program in St. Croix, Pierce, Dunn, Eau Claire and Chippewa counties.

Since its bankruptcy, CHP is being run by an attorney and a third-party administrator as final bills are paid.

For more please read the March 13 print version of the Herald.

Tags: news, business, health, wisconsin