YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

December 23, 2003

Report No. 2003-120

Operation costs could be reduced for the state’s habilitation centers housing residents with developmental disabilities

Currently, Missouri residents with developmental disabilities can be placed in one of the division’s six habilitation centers or into contractor-operated facilities in their own communities.  During fiscal year 2002, the cost of serving the 1,284 residents of state-operated campus facilities was $113.4 million.  Due to state budget cuts, the Division of Mental Retardation and Developmental Disabilities needs to assess its programs.  The following highlights the findings:

State operated on-campus residential services should have operating costs examined

If the division decides to close one facility, about $5 to $6.9 million (about $2 to $2.7 million in state funds and $3 to $4.2 million in federal funds) in annual operating costs could be saved.  Habilitation center officials said renovations at four of the five remaining facilities could add a sufficient number of Medicaid certified beds to accommodate residents from the closed facility.  (See page 3)

Division officials have initiated actions to streamline center operations

Division officials said they have begun a phased approach in deliberate stages to streamlining and reorganizing the habilitation center system.  However, the division officials had no written plan to show how or when overall reorganization would take place or the most cost beneficial approach to reorganization.  (See page 5)

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