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About Just out. (Portland, OR) 1983-2013 | View Entire Issue (Oct. 6, 2000)
24 6 2000 * — K i t i* |f E N lJ F a llin g m We'd like to see the queer community come back and volunteer and support us with donations so we can continue to do this good work. — Juav Watson " m ÉÈ * H I W mm Nonprofit filially collapses, but services remain intact by Jonathan Kipp Photos by Marty Davis m® et it be known that Phoenix Rising Foundation no longer exists. By vote of the hoard of directors, the troubled entity has been dissolved. But like the mythical bird that inspired its name, its legacy will last forever. The nonprofit, once a beacon of hope and help for sexual minorities— particularly low- income folks in need of mental health services and youth desperate for understanding and sup port— was formed in 1979. Its mission was to promote the common interests and well-being of lesbian, gay, bisexual and transgendered peo ple through mental health, education and other support services. In addition to providing counseling and programs for teens, the organi zation reached out to senior citizens. Phoenix Risings money troubles have been widely reported in recent years. But the sting from this announcement is no less painful. “Personally, Pm sad to see the institution gone," says M atthew Nelson, Equity Founda tion executive director and a former Phoenix Rising board of directors member. “Every time we lose an organization, there is a piece o f our identity that gets lost.” Still, the news about the change is not all bad. The organization, so dear to Portland gay leaders and the community in general, might be gone, but the services available for sexual minorities remain intact and possibly are stronger than ever. What happened? s managed care systems infiltrated the mental and general health care business, small service providers like Phoenix Rising had an increasingly difficult time surviving. T he nonprofit was forced to sacrifice full A autonomy and accept help from a larger and more stable organiza tion: Network Behav ioral HealthCare Inc. T h e infrastructure and overhead required to support a managed care therapy program were too complicated, says Judy Watson, who served as Phoenix Risings executive director during its final months. She also works as vice president in charge of operations at Network. A t the center o f the slow collapse was an outdated sliding-scale fee schedule that Phoenix Rising made available to its low- income clients. Although some private prac *# f tice mental health practitioners still offer a sliding scale to clients, most clinics no longer can afford to do that. Also contributing to Phoenix Risings finan cial woes was the public’s lack of confidence in its management, which resulted in dwindling donor support. The organization’s fall from grace came when former executive director Allanya Guenther stumbled upon what she called “a financial malfeasance.” In July 1998, Phoenix Rising owed $125,000 to the Internal Revenue Service and others, and an additional $40,000 was unaccounted for. The chief financial officer was suspected of embezzlement, and police were alerted. A full investigation followed. Guenther and the board of directors were exonerated of any wrongdoing. But Dale Hunter was indicted for white-collar crimes committed at Phoenix Rising, according to a spokesperson from the Portland Police Bureau’s fraud division. He has an outstanding warrant for his arrest, but authorities have "Every time we lose been unable to locate an organization, there is a piece him. T he embezzlement of our identity that gets lost. and financial misman agement weren’t the Matthew Nelson only problems, howev er. The foundation was averaging a $13,000-a- month deficit during fiscal year 1999. T h e average fee collected— about $51 — didn’t come close to covering the $ 9 0 cost of providing those services. “Phoenix Rising sim ply cannot generate the cost o f doing busi ness,” G uenther said in the Jan. 22, 1999, edi tion o f Ju st O ut. Som e community members felt betrayed because o f the organization’s predicament, while others were angered about the board’s delay in notifying the public about the mounting debts and financial misconduct. A merger followed, and the services o f Phoenix Rising were soon under the umbrella o f N et work Behavioral H ealthCare Inc. Initially, the network handled billing and financial management. Phoenix Rising loyalists insisted the organization would survive as they fought for stabilization and for donors to return with contributions. Despite the assistance, the foundation still con tinued to lose money. The fees that low-income clients could afford did not cover staff expenses. In addition, Phoenix Rising’s clinicians weren’t trained to handle the complicated billing paperwork required of managed care health orga nizations. As a result, by November 1999 all counseling services were folded into Network and renamed Helios Counseling Services. Even with the support o f N etwork, Phoenix Rising continued to face a projected deficit o f $ 4 0 ,0 0 0 during fiscal year 2001. “It became apparent that costs associated with W i'n Mi M Kcaftw ym'tt ata h ad. eA h Aik Make Bender Properties your real estate home. Put your feet up and relax! Details are our business. You won’t lift a finger as we attend to every aspect of buying or selling your home-even the lit tle chores that others sweep under the rug. And successful? When it comes to fresh marketing or resourceful hunting, our enterpris ing agents really clean house. Complete service and client educa tion are always our priority. 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