The Genesis Development board of directors made the announcement early this week after notifying employees late last week.
According to a prepared statement, “Today’s ever-changing, increasingly difficult health care environment has created unprecedented operational challenges for our organization.
“As we enter the final quarter of the year, we are facing a budget shortfall, but we are actively pursuing the best path forward,” the statement continued.
The board will transfer mental health services to Zion Recovery, effective Oct. 5. “There are no other plans to share at this time, and we are committed to continuing to provide services, as usual, until further notice,” the board stated.
“Our people – members and staff – continue to be our first priority, and we will continue to communicate with them in the coming weeks, as appropriate.,” the statement concluded.
Genesis Development is a respected leader across Iowa in providing services to persons with disabilities. With its first and main office in Jefferson, Genesis Development has grown since 1973 to 15 offices serving persons in 17 different counties. In the last year, Genesis Development served nearly 5,000 persons with a variety of services. It employs 500 and last year had a budget of $19 million.
Terry Johnson served as executive director for 40 of the agency’s 46 years, retiring at the end of July. He visited several times a year with the Greene County board of supervisors.
After Medicaid was privatized in 2016, his conversations with the supervisors included his frustration with managed care organizations (MCOs). He told of increased staff time required to submit and re-submit claims over and over again until they were finally paid at a lesser rate. The MCOs were often hundreds of thousands of dollars behind in paying claims owed to Genesis, Johnson reported to the supervisors.