Payment problems for nonprofits
There are continuing problems for Alaska Native health care nonprofits not being paid for costs related to services offered by the federal Indian Health Service and Bureau of Indian Affairs. Cook Inlet Tribal Council, which offers substance-abuse treatment, is suing the government to collect overdue payments and won a round in court when a federal judge ruled the denial of payment for overhead expenses is contrary to law. CITC says it is allowed only $12,000 annually for overhead costs, like utilities, and that this is well below its actual costs, which in 2014 were $465,000, for example. If CITC cannot be paid its fixed facility costs these must be paid by diverting funds from treatment programs. Ultimately a settlement in the range of several million dollars is likely, attorneys for CITC said.