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Memo ponders Rhode Island budget cuts
(November 2005 Issue)

By Elinor Nelson

An internal memo from CEO Richard Freeman of Rhode Island's state-run Eleanor Slater Hospital to the state's Department of Mental Health, Retardation and Hospitals, written and leaked to the press in August, outlined a potential $12 million in savings from "hospital size reduction and outsourcing" and unnerved some in the mental health community. However, it's too soon to tell if the suggested cuts will find their way into the next state budget.

Freeman, who declined to comment on the memo, had written it in response to a call from the state budget office to all state agencies, for a ten percent across the board budget cut. The memo outlined various programs and personnel cutbacks that could generate the $12 million savings.

Joseph Monteiro, president of Local 1350, AFSCME, Council 94, which represents many of the employees at Eleanor Slater, states that he would find the proposed cuts "worrisome," but for now views the memo as a response to a budget exercise. He labels some of the memo's suggestions as "fairytales" because of enforceable labor contracts, while others "may or may not pick up momentum as we go through the budget process."

Eleanor Slater Hospital was created in the mid-1990's, consolidating three state hospitals then known as the Institute for Mental Health, the General Hospital and Zambarano Memorial Hospital. According to Reed Cosper, J.D., Rhode Island's mental health advocate, the consolidation allowed the state to qualify for millions of dollars of Medicaid funding for treating the mentally ill.

The hospital has 490 beds but is currently at about 360-bed capacity, with about 80 psychiatric patients, says Monteiro. And, he says, there are approximately 40 people waitlisted for long-term care, some of whom are being treated for mental illness. The wait list is tied to staffing levels.

Freeman's memo suggests savings via "reducing patient flow," "aggressively discharging patients," and "possible closing of admissions." He talks of "reducing psychiatric capacity from 96 to 72," outsourcing dietary and laundry services and reorganizing nursing, administrative and medical services.

Roberta Hawkins, executive director of the Alliance for Better Long Term Care, a Rhode Island-based nonprofit organization, says that if implemented, the cuts would "dramatically upset" the state hospital system. Even now, she says, nursing homes are overwhelmed with patients who should rightly be receiving full-time psychiatric services at Eleanor Slater. Some patients are overmedicated in nursing homes, she adds, just so that they can be treated. "The state hospital doesn't keep those who can live in less restrictive environments," Hawkins says. "The people left there really need to be there."

Cosper concurs. In 1975, he says, there were 3,900 mentally ill inpatients in Rhode Island's state hospitals. "Long term care doesn't mean institutionalization like it used to," he says. "It's not like they are here forever. They are not warehoused." While Cosper doesn't recommend returning to 1975's high levels of institutionalization, he is distressed by the current shortage of long term beds, and offers four dire predictions for consequences of insufficient care for the mentally ill. First, he says, acute beds fill with stable long term care patients. Secondly, nursing homes fill with mentally ill adults under the age of 50. Next, mentally ill people may go to jail. And finally, sometimes mentally ill people die.

Cutting ten percent from all state agencies is not a realistic goal, says Monteiro. "It's not a fair process when you're not prioritizing which citizens need your help the most." The ten percent reduction "is not inspiring or responsible" when it is taken from "the people who are most vulnerable."