Tensions are rising as the Ingham Community Health Centers struggle to deal with a multi-million-dollar budget deficit.
To close that shortfall, at least one of the county’s 13 facilities will close in the next two months, and staff layoffs are coming. With those cuts in service, some worry that vulnerable populations will lose access to care.
WKAR's Sophia Saliby spoke with Kris Drake, the executive director of the health centers, about the deficit and calls for his resignation.
Interview Highlights
On how the budget shortfall came to be
As with any budget exercise, you base what your targets are going to be, connected with historical activity. And so, this past fiscal year was no exception to that. However, as we navigated the actual fiscal year, we realized that we're not going to be able to meet those budget targets and so we started pivoting to identify solutions to help us shore up a burgeoning budget deficit.
On the possibility of more cuts
We're hoping that this is the only time that we have to contract our staff, our workforce. And we thought long and hard about this. We put a lot of time and effort into solutions that we believed would address the the budget shortfall moving forward. So, we put this budget adjustment plan in place with the intent of not having to repeat this for the foreseeable future.
On his reaction to calls for him to step down
I'm willing to collaborate with all stakeholders to bring about a solution that allows for accessible, affordable, high quality health care to be available in this community for the residents of Ingham County.
Interview Transcript
Sophia Saliby: Tensions are rising as the Ingham Community Health Centers struggle to deal with a multi-million-dollar budget deficit.
To close that shortfall, at least one of the county’s 13 facilities will close in the next two months, and staff layoffs are coming. With those cuts in service, some worry that vulnerable populations will lose access to care.
Kris Drake is the executive director of the health centers, and he joins me now. Thank you for being here.
Kris Drake: Thank you for having me, Sophia.
Saliby: One of the main reasons for this budget shortfall being cited is an overestimation of the number of Medicaid patient visits eligible for reimbursement. Why was there such a disconnect between those expectations and then the actual number of payments?
As we navigated the actual fiscal year, we realized that we're not going to be able to meet those budget targets, and so we started pivoting to identify solutions to help us shore up a burgeoning budget deficit.
Drake: As with any budget exercise, you base what your targets are going to be, connected with historical activity. And so, this past fiscal year was no exception to that.
However, as we navigated the actual fiscal year, we realized that we're not going to be able to meet those budget targets, and so we started pivoting to identify solutions to help us shore up a burgeoning budget deficit.
Saliby: The centers also dealt with a shortfall last year, that time by utilizing county funding. How do you plan to maintain support for the center's mission if financials are continuing to be an issue?
Drake: Well, thank you for that question, Sophia. This is why we are putting in place a budget adjustment plan, as we're calling it, whereby this will allow us to optimize our cost structure and adjust our revenue projections to what we'll be able to realistically achieve fiscal years to come.
We want to make sure that it's understood that we care deeply for the homeless population and individuals who receive their care at the New Hope Community Health Center.
Saliby: Part of that plan came this month with board members deciding to close the New Hope Community Center, along with laying off or relocating more than a dozen employees. That center primarily serves people experiencing homelessness. Is there any kind of concern that this vulnerable population will lose access to care?
Drake: I appreciate that question. It's a very valid question. We want to make sure that it's understood that we care deeply for the homeless population and individuals who receive their care at the New Hope Community Health Center.
Even as we move forward with closing that site, our other health center locations are well equipped to meet their needs. In addition, we are working with our community partners, our fellow safety net healthcare providers, to see if they have the need to serve the population as well.
We recognize that it takes a village to wrap around the most vulnerable populations in any given community and this is no exception. But regardless of the closure, we stand committed to support the homeless population now and for the foreseeable future.
Saliby: Broadly, not just looking at specific populations, how will patient care across the board be impacted in the long run with potential staff layoffs or other cuts that may have to be made down the line?
We put this budget adjustment plan in place with the intent of not having to repeat this for the foreseeable future.
Drake: We're hoping that this is the only time that we have to contract our staff, our workforce. And we thought long and hard about this. We put a lot of time and effort into solutions that we believed would address the budget shortfall moving forward. We put this budget adjustment plan in place with the intent of not having to repeat this for the foreseeable future.
There's a lot of additional interior work that's not related to workforce adjustments that we're going to pursue, and that's all a part of comprehensive approach to make sure that we are around for the foreseeable future and that our care continues to remain high quality in nature.
Saliby: To end our conversation, some union leaders blame the deficit on leadership and are calling for your resignation. What would you say to them, and do you have any plans to step down?
Drake: What I will say, in response to that, is I am a willing partner. I'm willing to collaborate with all stakeholders to bring about a solution that allows for accessible, affordable, high quality health care to be available in this community for the residents of Ingham County. That is my response.
Saliby: Kris Drake is the executive director of the Ingham Community Health Centers. Thank you for joining me.
Drake: Thank you so very much. I really appreciate it.
This conversation has been edited for clarity and conciseness.
