WE CARE: DISTRICT'S FAILURE TO PAY JEOPARDIZES HOUSING FOR MENTALLY
WASHINGTON, D.C.--May 9, 1995--
We Care Projects, Inc., a critical
supplier of care and medical services to the profoundly mentally retarded in
the District of Columbia, announced that it has filed for protection under
Chapter 11 of the bankruptcy laws. The firm is currently owed more than
$3,000,000 by the D.C. Government Medicaid.
Charles Dorsey, the President of We Care Projects, Inc., a D.C. non-profit
corporation, said the firm maintains eight facilities in the District, and
employs 300 people, most of whom are District residents. "Our residents are
profoundly retarded adults, most with a mental age under nine months," Dorsey
Dorsey explained that We Care has received substantial praise for its 24
hour residential care of the profoundly mentally retarded, but that the firm
found it impossible to satisfy its major bond holders. He said We Care owes
the bond holders $10,000,000 for the construction of its facilities and could
no longer pay the bond holders and at the same time to carry on its day-to-day
obligations for the critical care of its residents.
"We just had to choose between those whose very existence is in our hands,
and the bond holders in Chicago," Dorsey said.
We Care and several other residential care facilities were set up after
Senior United States District Court Judge John H. Pratt ordered the District
to remedy the severe problems of the poor care then being provided at Forest
Haven for many mentally retarded residents.
"Even that part of our reimbursement which is being paid by the District has
not been adjusted for inflation or the cost increases we have had since we
started operations in 1991," Mr. Dorsey said, "We have done a good job caring
for our residents, but we cannot continue, if the District Medicaid fails to
pay its fair share of costs for their care." According to Dorsey, District
Medicaid has failed to pay a large part of the actual operating costs of the
facilities since 1992.
"Our residents must have 24 hour care. Even in its present economic
difficulties, the District cannot abandon those who most need its care,"
The case was filed in the D.C. Bankruptcy Court by attorney Thomas J.
Stanton, who specializes in reorganizations of nonprofit firms.
CONTACT: Charles Dorsey, 202-723-9424, or Thomas J. Stanton, 202-342-3342,
both for We Care Projects