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For Immediate Release:
April 15, 2003

Contact:  Tamie Hopp, Director
605-399-1624

NEW RESEARCH SHATTERS MYTHS ABOUT COSTS OF CARING FOR THE MENTALLY RETARDED/DEVELOPMENTALLY DISABLED

Rolling Meadows, IL—The widely held belief by policymakers that it always costs less to care for people with mental retardation and developmental disabilities in group homes than in institutional settings is not true, according to a new peer-reviewed study published today in Mental Retardation, a journal by the American Association on Mental Retardation.

Nancy Ward, president of Voice of the Retarded, the national organization that commissioned the study, said, “This should be an eye-opener in terms of how we care for people with mental retardation and developmental disabilities. The bottom line is that, when all factors are taken into account, large savings are not possible when states close institutions and shift residents to group homes."

“This study should help federal and state officials avoid decisions based on faulty cost assumptions that could result in lower quality care for the most fragile citizens among us,” Ward said.

“At a time when all states are faced with enormous fiscal challenges, we often hear about making sure that a ‘safety net ‘ is in place for the most vulnerable.  Facts are now available to make smart decisions about how best to care for them,” she added.

According to Ward, for many years there has been contentious national debate over whether people with mental retardation and developmental disabilities should be cared for in larger state facilities (institutions) or group home settings.

“The reality is that we need both,” she said. “Some people do very well in group homes. Others require the services of a more comprehensive center. As VOR has always advocated, choice and service based on individual needs is the right way to guide placement decisions.”

Nationally, the trend has favored smaller settings for people with developmental disabilities, often because of dated perceptions about the conditions inside so-called “institutions” and perceived cost savings. Community settings for 15 or fewer residents now number nearly 120,000 nationwide. In the early years of deinstitutionalization, many less-disabled people faired very well in less intensive care settings. Moving these individuals from large centers made sense. It saved money and they enjoyed a higher quality of life.

But Ward argues that the movement of people from large centers to community programs in more recent years has gone too far with a “one size fits all” approach. It fails to take into account the range of conditions and requirements of people with mental retardation/developmental disabilities. Some individuals require very intensive care that cannot be provided safely in most group homes and similar settings.

 “The haste to deinstitutionalize because of old stereotypes about these facilities and perceived cost savings has denied a great many people with severe and profound mental retardation who may also have medical complexities or severe behaviors from the close, specialized care that the large facilities are better able to provide,” says Ward.

“There is the pervasive belief that placement in the community is always cheaper,” says Ward. “But, the tragic result is a woefully under-funded community system that is not prepared to care for the complex needs of those now residing in larger, specialized facilities.”

“Once you convince the taxpayers that there are going to be big savings and the larger facilities are closed down,” Ward added, “it’s next to impossible to bring them back, even when the evidence shows that the decisions were misguided. Now, we have peer-reviewed evidence to prevent such bad fiscal decisions from being made in the first place.”

“Perceptions sometimes die hard, but today we begin to change the paradigm by shedding light on the facts. This research gives policymakers the data they need to take an honest look at costs. Anticipated cost savings are no longer a valid argument for not adequately funding a full range of care settings for people with mental retardation,” said Tamie Hopp, the group’s Executive Director.

According to Hopp, the research was conducted by Developmental Disabilities Health Alliance (DDHA), with funding support from VOR.  The findings were based on a literature review of selected studies that have compared the cost of care in various settings.

Kevin Walsh, Director of Quality Management and Research at DDHA and lead researcher for the project said, “Literature review is a time-honored method of determining ‘the big picture.’  It can give policymakers an understanding of critical factors to be considered in comparing costs across settings. That’s what they need to make informed decisions.”

Walsh and his colleagues detailed several factors that impact cost comparisons, and noted that these factors are often overlooked in existing research.  They are:

Hopp said that VOR is the only national organization that does not take sides in the institution versus group home policy debates.  The organization supports both and believes that all options should be available so individuals can be placed in the setting that is best for their circumstances.

“Taxpayers are not told that it is people with the most profound mental retardation, who often also have medical conditions that require intense medical supervision and emergency care, who are not cared for adequately when moved to group homes run by low-bid contractors,” Hopp added. “Taxpayers don’t save money, and the quality of care goes downhill.”

For more information and a copy of the study, contact Tamie Hopp, VOR Executive Director, 605-399-1624; vor@compuserve.com.

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VOR is a national organization advocating on behalf of individuals with mental retardation and their families. VOR is the only national organization advocating for a full range of residential and support options for people with mental retardation, including Medicaid-certified Intermediate Care Facilities for the Mentally Retarded (ICFs/MR) and home and community-based care.

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877-399-4VOR ph. * 847-258-5273 fax * tamie327@hotmail.com