ElderHealth Northwest

Resource Constraints and Fundraising

                                

ElderHealth operates within a resource constrained environment with Medicaid reimbursement as the major source of funding. As of June 2009, the reimbursement rate in King County was $57.44 per day for adult day health and averaging $111 per day for supportive living. The supported living homes, licensed as 'boarding homes,' receive a lower reimbursement rate than 'nursing homes.' These rates do not cover the costs of operating the programs and facilities.
 
While Medicaid funding fails to fully cover costs, it also lacks stability. For example, the 2009 state legislative session cut rates for supportive living and home care by 3%, meanwhile cutting adult day health reimbursement for clients living in adult family homes. For ElderHealth, this meant a $2 million dollar budget reduction, amounting to 20% of total operating budget. ElderHealth's 'signature program,' Adult Day Health, remains often overlooked and underappreciated by legislators.
 
In this challenging financial environment, ElderHealth maintains viability by cutting costs in creative ways. ElderHealth uses rental facilities that charge less than market rate (i.e. public housing buildings and religious facilities). ElderHealth also relies on a strong volunteer force, with an average of 200 volunteers per year supporting its sites. This includes AmeriCorps members, service-learning students, college interns, family members and others in the community. As much as possible, ElderHealth uses pro bono services for needs such as printing, legal help, event facilities and supplies. Finally, ElderHealth supports its workers who are technically still low-wage workers with extra care so they remain committed to the organization's vision.

Along with cutting costs, ElderHealth also proactively fundraises, bringing in 10% of its budget from contributions including grants and individual donors. The challenges of fundraising include lack of awareness about adult day health and lack of philanthropic support for elder-focused programs. At the same time, beneficiaries of ElderHealth are incredibly grateful for its services, and generous with their time and money. Furthermore, ElderHealth benefits from a stellar reputation in the community.

ElderHealth spends a bulk of its fundraising time writing grants and educating the public and its support base about the necessary services it provides. This includes email and hard copy newsletters, hosting one-on-one meetings, inviting community members to visit sites or volunteer, and encouraging strong contributors to invite their friends. ElderHealth also hosts an annual breakfast, its main fundraising event. Finally, in challenging economic times, ElderHealth has had success building a broader donor base involving smaller contributions. ElderHealth's vendors such as cleaners, phone providers, landlords, attorneys have been especially eager to donate.


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