Adult daycare provider cites costly health care shifts as reason for closing

Posted at 5:35 PM, Mar 19, 2018
and last updated 2018-03-19 17:35:18-04

HENRICO, Va. – After 51 years of service, an adult daycare center will close its doors in April 2018, citing changes at both the state and federal level to programs that support seniors and those with disabilities.

Grace Place Adult Daycare currently provides services for 170 adults over the age of 18, with intellectual and or developmental disabilities and age-related conditions. Their clients have conditions like Cerebral Palsy, Multiple Sclerosis, ALS, autism, Alzheimers, and Parkinson’s disease.

Interim CEO Lynn Seward filed Chapter 11 bankruptcy on March 16.

“Regrettably, with changes at both the state and federal level to programs that support seniors and those with disabilities, A Grace Place is no longer viable,” the organization claimed in the filing. “After serving as a health and social safety net for over 51 years, A Grace Place has decided to close.”

The decision to file was due to what the organization referred to as “an increasing gap between Medicaid reimbursement and the actual cost of care.”

Additionally, the CEO cited a growth in costly regulatory requirements and a shift from a “government-based system of care to a privatized one.”

A privatized model required additional administrative expense, according to the filing.

Of the organization’s 50 employees, 12 are salaried and 38 are hourly.

“At this point in time, I cannot help but appeal to legislators, policymakers, and the public at large, to help the many, many Virginians who rely on government – largely through Medicaid – to provide a safety net of support to those with mental and physical disabilities who cannot afford private care,” the organization said in the filing.

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