One of the greatest frustrations for adult day care center operations in some areas is the time it takes to get a person Medicaid approved. This means a person needs your services for months before Medicaid approves them and authorizes the reimbursement of services. In some cases a retroactive payment may be possible and in others it may be a financial loss.
In any event its hard to say no to someone who needs you but who may not qualify for enrollment into a public reimbursement source, i.e. Medicaid waiver, for weeks or months. The answer for many is a “Participant Sponsorship Campaign”. This is when non-profit programs or for-profit programs with non-profit affiliates solicit donations from the community including from both small and large companies and use these funds to finance the attendance of those who cannot afford to come until the center can be reimbursed by another means. $20.00 monthly from 500 neighbors and $150.00 per month from 100 companies in your area produces $25,000.00 monthly and if your average reimbursement is $1,000.0 per month, you are allowed to serve 25 people at a time as you wait to be reimbursed by other sources.
Of course this is applicable for those centers who have established a foundation for this purpose, have tax exempt status from the Internal Revenue Service and are recognized as a charity and authorized to solicit donations by your state attorney general. Additionally the campaign needs to be professionally developed and it must communicate a real message of giving.
Perhaps the best one-word description for such an effort is “innovation”. We have to decide in any business how to solve problems, how to rise to challenges and how to thrive in our endeavors. We just described one such solution. Now will you start using it?
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