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Hidden Costs of Homelessness

Day 3When calculating the civic price of homelessness, communities think about how much it costs to build and maintain shelters; to staff agencies that match available housing and jobs with people experiencing homelessness; and to pay landlords and motel owners for housing that is meant to be transitional. If the community is enlightened, it even factors in the costs of hospitalizing and jailing people who would not need to be in either facility in the first place, if they had somewhere to live.

But there are other, seldom-mentioned categories of expense that taxpayers often don’t even realize have become part of their financial liability. Less than a year ago in Denver, Amy Goodman reported on what has been called an “historic police brutality case”:

Marvin Booker was a homeless street preacher from a prominent family of Southern preachers. In 2010, he was killed by deputies in the booking room of the Denver jail.

It was all on video. The coroner ruled a homicide, the sheriff’s department personnel went totally unpunished, and the citizens of Colorado were handed a bill for $4.65 million to pay compensation and damages to Booker’s family. On the other side of the country, a court told New York City to pay $2.25 million to the mother of a man who was left to die in an oven-like cell at Riker’s Island.

When a hospital does something wrong, the cost of making it right may not come from the tax coffers, but community members pay just the same, as every subsequent patient contributes to cover the deficit. In Southern California, local reporter Sarah Parvini noted:

Over the course of a decade, former patients have been found on Skid Row in hospital gowns or wearing hospital ID bracelets around their wrists. A case of a paraplegic man found crawling with a colostomy bag spurred public outrage and led to investigations as well as criminal charges.

One Los Angeles hospital was fined $200,000 in civil penalties for discharging a patient to nowhere. Sure, they kindly gave the sick homeless person a ride downtown, but still a court took a dim view of such heartless “dumping.” Another local hospital that habitually dropped off patients on Skid Row was ordered to pay $500,000 to homeless service providers, and one suspects that money will not come from the hospital’s profits, but on the backs of future patients.

Also in Los Angeles, the County-USC Medical Center mishandled a homeless woman’s labor and delivery process, resulting in the birth of a severely disabled child who needs institutional care. The story is full of heartbreaking details, not the least of which is a $7.5 million settlement that will come from the pockets of other Californians.

LA’s Skid Row has become less convenient for “patient dumping” for another reason. The city would like to push everyone out of the area, and attempted to start a diaspora by implementing a very aggressive policing program. When a lawsuit was filed by several long-term street people, the power structure agreed to suspend the overnight police sweeps until the city could build 1,250 permanent housing units, which are a long way from becoming reality. Meanwhile, the city (taxpayers) paid for $725,000 worth of the civil rights attorneys’ professional time.

In Dallas, eight years of litigation ended with the city agreeing to pay a quarter million dollars to two organizations with whose feeding of homeless people it had interfered. The story says:

Of the settlement, $166,666.66 will go to Big Heart Ministries and Rip Parker Memorial Homeless Ministry and $83,333.34 will go to the lawyers from National Law Center on Homelessness & Poverty who represented the plaintiffs.

Legal representation costs an awful lot, and cities are paying for prosecutors to go after the violent criminals who beat and kill homeless people, and for their public defenders. The bills for hate crimes land in everyone’s mailboxes. Another incidental budget item is the cost of constantly re-arresting offenders for not reporting to the authorities where they live, because they don’t live anywhere. And the cost of putting out fires that are started accidentally by homeless people trying to cook or just to avoid freezing. Really, listing all these miscellaneous expenses could become a full-time job, and they are all expenses that would not exist if everyone had a place to live.

Reactions?

Source: “In Historic Police Brutality Case, Family of Homeless Denver Pastor Killed
in Custody Awarded $4.6M,” Democracynow.org, 10/17/14
Source: “L.A.’s Homeless Patient Dumping Law Leads to $500,000 Settlement With Hospital,” KCET.org, 05/29/14
Source: “Formerly Homeless Woman Awarded Medical Malpractice Settlement Against L.A. Hospital,” LegalExaminer.com, 11/07/13
Source: “City to Pay $250000 Settlement to Homeless Support Groups,” DallasObserver.com,12/08/14
Image by David Shankbone