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Connections CSP got biggest PPP payout in Delaware, but remains in the red

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Connections CSP has seen the biggest payday in Delaware from the federal Payroll Protection Program (PPP). But the state’s largest nonprofit says it’s still in the red because of the pandemic.

Connections got $10 million from the PPP to help cover what its CEO says is a $4 million monthly payroll. Connections also got $2.5 million in federal CARES Act funding to manage losses in Medicare and Medicaid billing. It’s also applying for another $4.3 million more of Delaware’s CARES Act funds.

Connections President and CEO Dr. Bill Northey says if those dollars come in it would cancel out Connections’ loss.

“We’re probably about $3 million under to date,” said Northey. “Now if that other money comes in that might make us whole up till now, but for now the numbers I saw we were under.”

Northey says the nonprofit has seen a drop in methadone clients since the start of the pandemic and fewer billable hours in its outpatient programs. He says there’s also been COVID outbreaks in its residential programs

“That has huge implications for staffing—staff have to quarantine,” said Northey. “For being able to create ways to keep people safe. We were installing shower curtains as extra protection between rooms.”

Northey says Connections had to lay off some of its workforce in the spring and has since not been replacing those who have quit or retired.

Connections lost its contract as the medical provider in the state’s prison system earlier this year but has recently secured a contract with the Delaware Department of Substance Abuse and Mental Health to add transitional housing for recovery in the state.

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