A faith-based, tax-exempt charity paid by the state to help some of New Mexico’s most vulnerable residents now plans to abandon more than half its clients in Rio Arriba and neighboring counties June 30, due to the region’s unprofitability.
Mosaic, which is based in Omaha, Neb., reported in its 2006 tax filings — the most recent available for the company — annual revenues of $194 million. However, Mosaic told the state Health Department it cannot afford to continue serving Northern New Mexico and plans to drop 41 of its 75 developmentally disabled clients in Rio Arriba, Santa Fe, Taos, Los Alamos, San Miguel, Colfax, Union and Harding counties, Department spokeswoman Deborah Busemeyer said.
“We didn’t choose this,” Busemeyer said of Mosaic’s plans. “Mosaic decided to end service in an area that was unprofitable. They told us they’re not making enough money in that area (of the state).”
Mosaic will also curtail most services for its remaining 34 clients in Northern New Mexico, eliminating job coaching, employment assistance, social skills development and transportation assistance.
The state pays Mosaic $5 million a year to operate 13 group homes in Northern New Mexico, including two houses in Española and one in Ojo Caliente, Mosaic Regional Executive Director Rick Klotz said. All three Rio Arriba County group homes — and 10 more in Santa Fe — will be closed unless there is “an 11th hour miracle,” Klotz said.
Mosaic plans now to provide only “host home” services in the region, in which the state pays Mosaic to have people open their homes to clients, Klotz said.
“It would take $1.4 million over the next two years to keep (providing services in the region),” Klotz said. “We’ve put $2 million of our own money into services.”
Klotz said he met with state Health Secretary Alfredo Vigil Jan. 22 to ask for the money but never heard back.
“We met with Vigil and his compadres and said we need $1.4 million more over two years or to amend our contract,” Klotz said. “His press release Monday was the first we’d heard.”
The Department will ensure that support services are provided by another company by June 30, when Mosaic will cut services, Busemeyer said.
“Persons of Worth”
A company mission statement filed with tax documents states, “Mosaic is a faith-based organization serving people with developmental disabilities so that all may realize God’s gift of wholeness of life. We are guided by the principal that ‘every individual is a person of worth.’”
Persons of particular worth to Mosaic include Chief Executive Officer David Jacox, who receives $494,727 a year in compensation and benefits, President Linda Timmons, who earns more than $276,000 annually, and Senior Vice President Cynthia Schroeder, who takes home $271,663 a year, according to tax documents. Three other Mosaic senior vice presidents earn between $157,673 and $258,388. tax documents show.
Less fortunate were dozens of Mosaic clients. State Health Department investigators confirmed at least 79 cases of abuse, neglect and exploitation of Mosaic clients between 2003 and 2006, Department documents show.
A public records request was filed Tuesday with the Department for copies of state investigators’ reports. None of the reports are available at the Department’s web site due to a possible “glitch,” according to Busemeyer.
Timmons and other executives at Mosaic’s Omaha office were unavailable for comment Monday but Klotz fiercely denied allegations of client abuse, neglect or exploitation.
“I’m not aware of any such allegations,” Klotz said. “Absolutely not. There have been no state investigations whatsoever.”
Informed of documents indicating state investigators had confirmed numerous such cases, Klotz said that he meant Mosaic’s not faced any “serious and true” neglect charges.
“If the state investigates and finds a (music) CD is missing, they make a finding of neglect,” Klotz said. “So (cases on) the public web site can be very minor. We’ve had absolutely no serious charges.”
But former Mosaic employee Yvonne Trujillo, of Española, said she witnessed neglect and exploitation of Española clients. She was eventually fired by Mosaic.
One client Trujillo claimed to have seen physically abused by Mosaic employees was a blind and deaf Española man, Alfredo Cordova. Cordova was struck in the head by an employee, Trujillo said. She could not remember the employee’s name.
“There have been incidents but Mosaic took steps to correct them,” Cordova’s mother Leslee said. “They ranged from serious to minor. I’ve spoken to state investigators. I have spoken to state investigators often. A lot of things were not substantiated. I asked for some investigations myself, as a parent.”
Leslee Cordova said she did not want to discuss details of allegations of abuse.
Klotz categorically denied Trujillo’s allegations of client abuse, neglect or exploitation.
Despite state-confirmed allegations of client mistreatment, the state has treated Mosaic like a struggling charity, offering to waive accreditation requirements and helping the company bill Medicaid for services, Busemeyer confirmed Monday.
“We (also) reimbursed them for remodeling or construction of clients’ homes when they took over from (ResCare of New Mexico) in 2006,” Busemeyer said. “I don’t know how much they were paid.”
Klotz refused to say whether or not Mosaic’s New Mexico program is accredited, meaning staff has been properly trained and tested.
“That has nothing to do with our (financial) request (to the state),” Klotz said. “I’m not going to touch on that — and that’s not a denial or a confirmation. There’s just no reason to talk about it.”
Klotz then hung up.
Lobbying Effort
Mosaic’s Española office took van-loads of clients to Santa Fe Feb. 4 to lobby state legislators for more money for the company, Mosaic employee Juan Ortiz, Chimayó, said.
“We loaded up all our clients to make it look good and went to the Round House to ask for more money,” Ortiz said. “Mosaic Santa Fe is closing also, so they took clients too. We had 20 to 30 staff there and at least 50 to 60 clients. The rotunda was full.”
Ortiz said was hired by Mosaic in July 2008.
“Not even a year and I’m out of a job again,” Ortiz said. “I was laid off from (Los Alamos National Laboratory) last year. It’s a bad time.”