Only Providing Community-Based Care May Not Save States Money
State officials and legislators often hear that Olmstead requires community placements. Such interpretation is not accurate.
In actuality, the Supreme Court, in its landmark Olmstead v. L.C. ruling, embraced the need for a range of services to respond to the varied and unique needs of the entire disability community: “We emphasize that nothing in the ADA or its implementing regulations condones termination of institutional settings for persons unable to handle or benefit from community settings...Nor is there any federal requirement that community-based treatment be imposed on patients who do not desire it.” 119 S. Ct. 2176, 2187 (1999).
A 2003 peer-reviewed study of existing cost comparison literature and related 2009 Update found that community settings for persons with developmental disabilities are not always less expensive than facilities, as some advocates claim. (Walsh, et al., "Cost Comparisons of Community and Institutional Residential Settings: Historical Review of Selected Research, Mental Retardation, Volume 41, Number 2: 103-122, April 2003; See Summary and 2009 Update). Cost savings at the macro level are relatively minor when institutional settings are closed, and if there are any at all, they are likely due to staffing costs when comparing state and private caregivers. For a single copy of the original cost study, or to purchase a quantity of original reprints, contact Tamie Hopp at 877-399-4VOR; or This email address is being protected from spambots. You need JavaScript enabled to view it.