Cost of Caring Fund
ABC Recovery Center has created a fund that will help sustain the ongoing needs of the organization that do not get compensated through reimbursements. This fund’s name, “The Cost of Caring”, will be used to encourage giving for non-specific projects.
“The Cost of Caring” would be utilized to fund:
ABC’s doctor/patient visits – $250,000 annually
Uncompensated pharmacy costs – $15,000 annually
Uncompensated care/charity care – $235,000 annually
Gap funding from service reimbursements that don’t fully cover treatment – $13,550,000 annually*
Total needed to compensate for all care that isn’t reimbursed – $14,050,000 annually
Last year, ABC Recovery Center had almost $19 million in billable client revenue. The monies realized after receiving the reimbursements for these billable services was just over $5.65 million.
As with most multi-disciplinary care models, which afford the client the greatest opportunities for wellness, full reimbursements aren’t made whether from the commercial insurer or government agency. Taking care of the whole client, meeting their physical addiction as well as their mental and emotional needs takes multi-disciplinary caregivers working in tandem with each other in order to provide the most successful outcomes.
Additionally, ABC Recovery Center does an extraordinary job of providing a significant safety net for anyone who needs it. Social justice is part of our commitment to care. If the underserved are not provided opportunities to have their significant healthcare needs addressed, the issues for this demographic exacerbate. It resolves itself in joblessness, homelessness, and more significant mental health conditions.
Addiction involves complex interactions among an individual’s brain circuits, genetics, the environment, and their life experiences. Racism disproportionately shapes the environment and life experiences of Black, Hispanic/Latinx, Asian, Pacific Islander, Native American, and other racially oppressed and disenfranchised people (hereinafter collectively referred to as Black, Indigenous, People of Color (BIPOC), adversely influencing both their risk of developing addiction and their access to evidence-based addiction treatment services.
From the Recovery Research Institute, in 2007, the direct and indirect costs of illicit drug use (excluding alcohol) totaled almost $200 billion. These numbers include costs associated with crime, healthcare, and loss in productivity due to drug use.
Here is the cost-to-benefit of early intervention:
Every $1 in treatment saves $4 in healthcare costs
Every $1 in treatment saves $7 in law enforcement and other criminal justice
Medicaid cost reduction:
$185-$192 per member per month after receiving a brief intervention
$238-$269 per member per month in costs associated with inpatient hospitalization from emergency department admissions.
Cost shouldn’t be the primary consideration when it comes to the human services that can be the difference between life and death.
That’s the reason for the creation of the Cost of Caring fund. So that care can be administered fully and completely to anyone who needs it.
*This total does not include the costs associated with Transitional Living, which would bring these number higher
