HOW THE CLINIC WAS CLOSED
On September 30, 1975, Operation Life Community Health Center entered into its third year of contracting with the Nevada State Welfare Division (NSWD) to provide EPSDT screening to Medicaid eligible youngsters. The contract enabled OLCHC to be reimbursed $32 for every child screened, whether a medical doctor screened the child or not. Two dollars of the $32 reimbursement was earmarked for outreach and transportation.

Staff members of Operation Life were paid from this money and the additional profits that were made from the program, to go into their community to let eligible recipients know that this program was available free of charge to the individual, as was transportation to and from the clinic. Often times they literally went door-to-door treating EPSDT as if it were a candidate for public office. The success of this type of outreach program was evidenced by the percentage of screenings of eligible children. (See earlier statistics)

According to the terms of this latest contract, it was to be in effect from June 15, 1975 until June 14, 1976.

On October 15, 1975, Minor Kelso (Mr. Kelso is chief of Medical Care Services, NSWD) in a letter to the OLCHC R.N., Mattie Blackshear, stated "Your clinic is doing a commendable job of providing examinations and contacting parents for follow-up and re-screening services..." This was to be the last compliment received by OLCHC on its successful program form State Welfare.

From this date on, the State Medicaid program (SAMI...State Aid to the Medically Indigent), EPSDT and especially Operation Life Community Health Center, was doomed by the maze of regulations and bureaucratic red-tape that NSWD, under the direction of Administrator, George Miller, implemented,

SAMI in the RED... 11 Million Dollars (?)

In late 1975 and early '76, State Welfare Director, George Miller, developed a package of severe cutbacks in the state Medicaid program. Cutbacks were being formulated in such vital services as doctor visits, drugs, In-patient and Outpatient Hospitalization, dental, podiatry, eye exams and many other services. The cutbacks were to be implemented in the Spring in order to alleviate a so-called "Medicaid fiscal crisis". However, evidence suggests that Miller used the results of poor budgeting, to scare legislators and the public into adopting his cutback package.