The Richmond Register

Local News

August 10, 2012

Health department layoffs delayed

Home health agency posts loss for 2011-12

RICHMOND — Despite ending the fiscal year in the red because of the deficit incurred by its home-health agency, recent resignations and retirements will allow the Madison County Health Department to delay planned layoffs and staff time reductions.

The deficit will be offset by dipping into a $3 million reserve created from surpluses in previous years, officials said.

In June, the Board of Health approved a $12.8 million budget for the 2012-13 fiscal year that included laying off three employees and reducing the hours of six staff members. The changes were expected to be made in July.

Health Director Nancy Crewe told the board Wednesday night that six staff members have resigned and two people have retired since June’s meeting.

One of the resignations was Debbie Kerr, nurse supervisor for the Richmond and Berea locations. A current staff member, Dora Shepherd, will be promoted to Kerr’s position while also continuing her duties of supervising the Access staff.

Because of the employee turn-over and resulting attrition, Crewe said the staff reductions will be postponed, and the agency’s financial situation would be monitored on a “month-to-month basis.”

Chief Financial Officer David Reed said that while health department services posted a $176,000 surplus for Fiscal Year 2011-12, which ended June 30, the board’s home health agency, MEPCO, posted a $611,000 loss. This left the overall agency in the red with expenditures exceeding revenue by more than $434,000.

The state’s decision to have managed care organizations (MCOs) handle Medicaid reimbursements in order to reduce costs is one of the reasons behind the financial loss, Reed said. The switch from state employees making reimbursement decisions to having three private MCOs take over the responsibility occurred in November, months after the health board approved  the 2011-12 budget based on revenue projections calculated earlier.

Reimbursement rates for MEPCO services have declined, Reed said.

His presentation showed Medicare revenue was $629,000 less than what was budgeted for 2012, and Medicaid revenue was down $209,000 from what was budgeted.

Insurance revenue also was down $268,000 from what was projected for the fiscal year.

Dr. John Johnstone, board vice chair, warned that Medicare and Medicaid reimbursements will continue to decline, and the health department needed to plan accordingly.

In the FY 2012-13 budget, the health department adjusted its expected Medicaid reimbursement down by 21 percent compared to the previous year.

Reed said the $434,000 overall loss was offset using surplus funds held in reserve from previous years. The reserve totals about $3 million, Reed told the board.

With the $3 million in reserve, plus another $4.3 million kept in reserve, primarily for capital projects, the health board has a contingency fund of about $7.3 million, Reed said.

“That is a sizable war chest to cushion us,” Reed said.

Also during the meeting, Crewe told the board that because of dwindling public health funds, Kentucky health departments are discussing instituting policies that prohibit people from receiving certain services away from their home jurisdictions.

Crewe said while this hasn’t been brought up in Madison County, the Kentucky Health Department Association will be coming out with some recommendations about the issue.

Sarah Hogsed can be reached at or 624-6694.

Text Only
Local News
  • 4-20 Shoulders-B.jpg Eggs fly at park

    Easter has probably never been so “eggstravagant” in Richmond as it was Saturday during the annual Eggstravaganza in Irvine-McDowell Park.
    For the first time, thousands of eggs were dropped, appropriately by an “eggbeater”-type helicopter, in addition to thousands of eggs already scattered on the grass below. Together, they numbered about 10,000, according to Erin Moore, Richmond Parks and Recreation director.

    April 20, 2014 12 Photos

  • City awaits funds for Water Street project

    Richmond city officials are still awaiting word on grant funding from the Federal Emergency Management Agency for the Water Street drainage project.
    However, Mayor Jim Barnes said he is confident the money should come through by May 1.

    April 20, 2014

  • Kitcarson1.jpg Elementary schools built in ‘60s getting upgrades

    Renovation of three Madison County elementary schools built in Richmond during the 1960s will start this summer.
    The county school board voted Thursday to continue with the second phase of state paperwork required for the projects.
    With a target completion date of August 2015, renovations and alterations at Daniel Boone, Kit Carson and White Hall elementary schools are estimated to cost almost $12 million.

    April 20, 2014 9 Photos

  • KY 52 link to I-75 to be discussed May 13

    While a proposed link from Nicholasville to Exit 95 on Interstate 75 north of Richmond has garnered attention and organized opposition, the state also is developing plans to link I-75 to another community to the west.

    April 20, 2014

  • May 30 last school day for students

    After 16 snows days and two weather delays this winter, the Madison County School Board decided Thursday to end the school year on Friday, May 30.

    April 19, 2014

  • 4-19 TechExtra1.jpg Students showcase projects in Technology Extravaganza

    Madison County School students showed off just how tech savvy they can be during the district’s sixth annual Technology Extravaganza on Thursday at Madison Central High School. After the showcase, more than 350 students were honored for their work.

    April 19, 2014 7 Photos

  • 4-19 SchoolBoardJesseWard.jpg Ward honored for service; tech center named after him

    Retired Madison County educator Jesse Ward was recognized Thursday for his many years of service. To honor him, Superintendent Elmer Thomas announced the board’s decision to rename the district’s technology training center on North Second Street in Richmond the Jesse P. Ward Technology and Training Center.

    April 19, 2014 1 Photo

  • 4-19 Brian Smith.jpg Berea man indicted on 24 child porn counts

    A Madison grand jury has indicted a Berea man on 24 counts related to child pornography.

    Brian J. Smith, 26, is charged with four counts of distribution and 20 counts of possession of matter portraying sexual performances by a minor.

    April 19, 2014 1 Photo

  • 4-19 Gregory Powell.jpg Police apprehend burglary suspect

    An observant witness was able to help Richmond police catch a burglary suspect shortly after a break-in Thursday afternoon on Savanna Drive off Berea Road.

    April 19, 2014 1 Photo

  • 4-18 PackTrack1a.jpg Walkers, runners of every age ‘Pack the Track’

    Waco Elementary and Model Laboratory schools students raised more than $8,000 (and counting) for the annual Pack the Track event at Eastern Kentucky University’s Tom Samuels Track Thursday, said Kim DeCoste of the Madison County Diabetes Coalition.

    April 18, 2014 14 Photos

AP Video
Raw: More Than 100,000 Gather for Easter Sunday Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Deadly Avalanche Sweeps Slopes of Mount Everest
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide

Should Richmond rezone the southwest corner of Main Street and Tates Creek Avenue to B-1 (Neighborhood Business) with restrictions to allow construction of a financial services office?

     View Results