Snort-worthy: NYS makes EI providers prove financial hardship before they will pay.
Here is some follow-up information for parents who are wondering why their children are on a waiting list for the NY State Early Intervention Program. As indicated in earlier posts, there are fewer providers available to deliver services because many have left the early intervention system. The program has directly contributed to a systematic destruction of small businesses operated by therapy providers around the state. Those who remain are large agencies who are now beginning to be cash-strapped and others who happen to have a level of uncommon/savvy navigation skills that allows them to operate amidst the NY State-generated chaos. Most early intervention providers have not seen payments since mid to late March and based on current projections they are only now beginning to trickle out partial payments for services that were delivered in the beginning of April.
If you read through the blog you will find a series of entries describing the disastrous implementation of a centralized billing system and absolute mismanagement of the early intervention program. We received this email gem today, asking providers to write a letter begging for payment if they can prove financial hardship. Here is the begging template that they want providers to use:
SAMPLE LETTER ONLY: PROVIDER MUST SUBMIT ON OWN LETTERHEADDateMs Deborah Martins/Mr.Anil ThomasNew York State Department of HealthMedicaid Financial ManagementCorning Tower - Room 2739Empire State PlazaAlbany, New York 12237-0016Faxed Letter Date _________ to 518-473-8786Original Mailed Overnight on ____________MMIS PROVIDER I.D. ________________Dear Ms Martins/Mr Thomas:We are requesting an accelerated early release of the system check(s) and remittances dated ____________ and the amount(s) of $ _______________________. The check(s) and remittances were scheduled to be released on _____________________ (date), and we are requesting approval of its release on _____________________ (date). If approved, we will have the check and remittances (CHOOSE ONE)_______ EFT_______ Pick-Up in Menands New York or_______ Federal Express,
or_______ First Class mail.As a result of Medicaid billing problems, we cannot wait for the scheduled release date of the check for the following reason(s):1. Explain the Medicaid Billing Problem, AND2. Cash flow or cash flow narrative which clearly shows why you cannot wait for the check to be released on the scheduled date.As required, attached is a copy of a letter from our bank or financial institution which indicates we have been denied a line of credit, or, we have exhausted our current line of credit (i.e. relatively new line of credit or a “ceiling” extension on a previous line of credit) and that we are ineligible for any further assistance.Sincerely,xxxxxxxxxxxxxxxxxxxxxx
In order for early intervention professionals to be paid they are now requiring a cash flow statement submitted with the request for early release of payment that proves financial hardship. They state that Medicaid Financial Management will only make payments early if there is a valid and substantiated need for the payment.
So here is my question back to NY State: Can I demand a cash flow statement and begging letter from you in order for me to send in my payroll taxes and quarterly income tax payments??