SAMHSA222s Weekly Financing News Pulse: State and Local Edition
October 13, 2010
10/13/2010
1
SAMHSA222s Weekly Financing News Pulse: State and Local Edition
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ichigan Missouri New York
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ebraska Ohio South
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SAMHSA222s Weekly Financing News Pulse: State and Local Edition
October 13, 2010
10/13/2010
2
Around the States: State and Local Behavioral Health
Financing News California
Governor Signs $87.5 Billion Budget, Cuts
Mental
Healt
h Funding
: On October 8,
Governor Arnold
Schwarzenegger
(R) signed the $87.5 billion FY2011
budget
approved by the
Californ
ia Senate
earlier
that day. The budget
eliminates
$937 million
in
health and human services spending, including $84
million
using
a
hospital Medicaid rate freeze and $187 million by enrolling elderly and disabled
individuals into managed care health programs. Governor Schwarzenegger used a line
-
item veto to
eliminate $133 million originally budget
ed
for mental health services for special education students
( California Healthline, 10/11 ; The Wall Street Journal, 10/9 ).
SAMHSA Awards $1.5 Million to Riverside County Drug Court
: The U.S. Substance Abuse and Mental
Health Services Administration
(SAMHSA) awarded a four
-
year $1.5 million grant to Riverside County222s
drug court, the Family Preservation Court. The grant will fund an expansion of the court, including in
-
home visits by child welfare workers and nurses, an expansion of the program222s educational materials,
and increased use of peer support groups for individuals at risk of losing custody of their children. The
court will focus on youth affected by methamphetamine abuse. Cour
t officials estimate the grant will
allow them to work with 1,438 children and 575 parents ( The Valley News, 10/5 ).
SAMHSA and BJA Award $2.25 Million to Monterey County Drug Courts
:
SAMHSA222s Center
for
Substance Abuse Treatment
(CSAT) and the
U.S. Department of Justice222s
(DOJ)
Bureau of Justice
Assistance
(BJA) awarded the Monterey County Health Department222s Behavioral Health Bureau two
three-
year grants totaling $2.25 million to enhance the county222s
juvenile and adult drug courts. The
grants will fund training,
increased program capacity, and improved services
.
The
juvenile court
,
Hope
for Youth/Esperanza para los J
o
venes
,
received $975,000. The program
serves 14 to 18 year olds
and
t
he grant will
allow the program to expand its capacity from 20 to 64
youths
.
The
county222s adult drug
court
received $1.27 million
to implement the Motivational Interviewing and Seeking Safety substance
abuse treatment program, which county officials estimate will serv
e 231 individuals over three years
( The Salinas Californian, 10/12 ).
Florida
New
Clinic
Off
ers
Treatment for Anxiety and Depression to Low
-
Income Uninsured Orange County
Residents
: On October 7, a clinic opened in Orlando
offering anxiety and depression treatment
to
uninsured Orange County residents earn
ing
up to 125 percent of the federal pover
ty level (FPL). The
Outlook Clinic is a collaboration
between Orange County, Florida Hospital, and the Mental Health
Association of Florida. The Orange County government is financing the building and utility costs while
Florida Hospital provides
the $260,000 annual operating cost under a Community Health Impact Council
Grant. The clinic will offer holistic care that includes pairing patients with primary care physicians
and
offering
discounted
or free
medication. Clinic officials estimate they will treat 300 patients by January
2011
( Orlando Sentinel, 10/7 ).
SAMHSA222s Weekly Financing News Pulse: State and Local Edition
October 13, 2010
10/13/2010
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Kansas
Kansas Salvation Army Increasing Rates for Substance Abuse Treatment
: Citing inc
reased
state
compliance
costs
, the Kansas Salvation Army is raising it
s
rates for individual
substance abuse treatment
by over 400 percent. Under the change, the rates will increase from
approximately $105 to
$483
per
person
per week. Salvation Army officials say the increase is the result of compliance with a state law
requiring
stricter
qualifications for
substance abuse counselors ( WDAF, 10/8 ).
Louisiana
VA Medical Center in Pineville Expanding Psychiatric Facility to Offer PTSD Treatment
: The Veterans
Affairs Medical Center in P
ineville is expanding its psychiatric facility to include a unit offering treatment
for post
-
traumatic stress disorder (PTSD). VA officials say the $3.8 million expansion
will be complete in
approximately one year ( The Town Talk, 10/10 ).
Massachusetts
AG222s Office Approves Deal to Sell Hospital System to Private Equity Firm, Maintains
MH/SUD Se
rvices
:
On October 6,
Massachusetts Attorney General Martha Coakley (D) approved a plan to sell Caritas
Christi Health Care, a system of six Catholic charitable hospitals, to the New York private equity firm
,
Cerberus Capital Management of New York. Outlined in a report
by Attorney General Coakley222s office,
the deal would place the hospitals under the management of a Cerberus holding company, Steward
Healthcare System LLC
.
In exchange,
Cerberus
will pay $495 million of Caritas222 debt and
make
$400
million in capital improvements to the hospitals over four years. As part of the deal, Cerberus must
maintain the hospitals222 inpatient psychiatric and detoxification beds, though they are currently losing
money. In addition, Cerberus cannot close any of the hospitals for at le
ast three years. The
Supreme
Judicial Court of Massachusetts
must approve
the deal and Cerberus
must
obtain hospital licenses from
the
Massachusetts Public Health Council
.
Cerberus and Caritas officials hope to finalize the deal by
October 31 ( The Boston Globe, 10/7 ; Kaiser Health News, 10/7 ; The Boston Globe, 10/12 ; Kaiser Health News, 10/12 ).
Senate Preliminarily Approves $420 Million Supplemental Budget, Includes Medicaid Funding
: On
October 8, the
Massachusetts Senate
preliminarily approved a $420 million supplemental budget, which
would spend $203 million in one
-
time fe
deral Medicaid funds on Medicaid services. The original $27.6
billion budget signed by Governor Deval Patrick (D) on June 30 projected that Medicaid enrollment
would rise 3 percent
; however, actual enrollment has risen 5 percent. Both the Senate and the
Massachusetts House
must give final approval to the bill
before it heads to the governor
( The Boston Globe, 10/9 ).
Michigan
Richmond Township Allows SHRC to Open Women222s Substance Abuse Treatment Center
: On October
8, a U.S. District Court Judge approved a settlement under which Richmond Township will pay Sacred
Heart Rehabilitation Center (SHRC) $600,000 and allow SHRC to open
a women222s substance abuse
treatment center at its Stoddard Road facility. SHRC sued for $3 million in 2008, alleging that the
township
was discriminat
ing against them
by
refusing to rezone
their
Stoddard Road facility
. The
SAMHSA222s Weekly Financing News Pulse: State and Local Edition
October 13, 2010
10/13/2010
4
rezoning would
allow
SHRC
to
relocate
the
ir
Clearview Women222s Treatment Center from Port Huron
to
Stoddard Road. Under the agreement, the township will pay for SHRC222s legal fees and SHRC can open
the women222s treatment center ( The Times Herald, 10/12 ).
Missouri
St. Louis County Mental Health Crisis Hotline Begins
: St. Louis County has begun a hotline to help
youth
an
d their families access help during a mental health cris
es
. The Youth Connection Helpline
will dispatch
youth outreach workers to alleviate a crisis and connect families with behavioral health services. The
non-
profit organizations Youth In Need and Behavioral Health Response developed the service, which is
funded through the St. Louis County Children222s Services Fund. The fund is financed through a portion of
the county222s sales tax and currently provides
$35 million to 44 non
-
profits and government agencies for
behavioral health services ( Behavioral Health Central, 10/7 ).
New York
New York City Council Cuts
Non-P
rofit222s Children222s Mental Health Services
Budget by
44 Percent
:
During the week ending October 1
, t
he New York City Council cut the
non
-
profit University Settlement222s
funding for a children222s mental health program by 44 percent
.
T
he cut reduces
funding
levels
from
$356,261 in FY2010 to $200,000 in FY2011. The program, Butterflies, provides mental health services to
children under five years old
. University Settlement officials say the cut will reduce monthly program
capacity from 550 children and families
to 50. University Settlement officials add that the cuts are
particularly damaging because they come amidst
the fiscal year that began on July 1, so the program has
already spent a disproportionate share of the total funding it will have for
the remainder of
FY2011 ( T
he New York Times, 10/6 ).
Bankruptcy Court Approves Deal to Sell St. Vincent222s Behavioral Health Operations
: On October 7, a
bankruptcy court approved a deal to sell St. Vincent Catholic Medical Center222s behavioral health
operation to St. Joseph222s Medica
l Center. The sale is part of a larger sale of the Catholic hospital, which
held
$700 million in debt
when it closed
in April. Several state agencies must approve
the deal
before it
becomes final, including the New York State Department of Health
(DOH
) and the
New York State
Offices
of
Mental Health
(OMH)
and
Alcoholism and Substance Abuse Services
(OASAS) ( The Wall Street Journal, 10/8 ).
N
ebraska
CenterPointe Youth Behavioral Health Facility Closing
: Citing underutilization and a change in Medicaid
payment policies, the 12
-
bed CenterPoint youth behavioral health facility will close by
November 1.
CenterPointe offers behavioral health treatment to youth with co
-
occurring disorders. CenterPointe
officials say the unit has been under capacity for several months. In addition, Nebraska222s Medicaid
program is altering its residential substance abuse treatment
payments
to comply with federal law
. For
Medicaid to cover the full cost of treatment
and
room
and board,
federal
policy
requires
that
psychiatric
residential treatment facilities be under the supervision of a physician
. Nebraska currently has no such
facilities
and previously paid for services that did not meet those criteria. Under the law,
Medicaid can
pay for treatment in other facilities but may
not fund
room and board ( Omaha World
-
Herald, 10/8 ).
SAMHSA222s Weekly Financing News Pulse: State and Local Edition
October 13, 2010
10/13/2010
5
Ohio
VA Awards New Vision Outreach $421,000 to Construct Transitional Housing for Veterans with
Substance Abuse Issues
: The U.S. Department of Veterans Affairs
(VA) awarded New Vision Outreach a
$421,000 grant to c
onstruct a 24
-
bed transitional housing facility for veterans with substance abuse
issues. The facility will provide veterans the
housing and support services necessary to find employment
and obtain a long-
term permanent residence. The grant will fund 65 percent of the project, with the
remaining $230,000 coming
from a bank loan. The award is part of $41.9 million that
the VA awarded to
programs in 40 states to build housing for homeless veterans under the Homeless Provider Grant and
Per Diem Program
( Chillicothe Gazette, 10/11 ).
South Carolina
Self Regional Hospital Closing Behavioral Health Unit
: Citing a psychiatrist shortage, Self Regional
Hospital will close its 34
-
bed inpatient behavioral health unit by 2011. Two of the unit222s three
psychiatrists
plan to leave
and Self Regional Hospital has been unable to find new psychiatrists to
replace them. Hosp
ital officials say they will refer patients to local hospitals for inpatient behavioral
health care ( Greenwood Today, 10/7 ).
Utah
Update: Salt Lake County Officials Reject VMH Challenge to Behavioral Health Contract Award: On
October 5, Salt Lake County officials rejected Valley Mental Health222s (VMH) challenge to the county222s
recent
behavioral health administration contract
award
. The county awarded
OptumHe
alth
an 18
-
month $55 million behavioral health administration contract; however, VMH officials argued that
OptumHealth is not properly equipped to guarantee adequate services
. VMH administered behavioral
health services in Salt Lake, Summit, and Tooele counties for the previous 23 years. County officials are
negotiating with VMH officials to extend VMH222s contract through June 2011 to allow for a proper
transition of services ( The Salt Lake Tribune, 10/5 ).
Virginia
Update: Eastern State Hospital222s Hancock Geriatric Psychiatric Treatment Center Loses Medicaid
Funding
: Because
Eastern State Hospital222s Hancock Geriatric Treatment Center failed to recertify
with
the
Centers for Medicare & Medicaid Services
(CMS)
by October 12, the center is no longer eligible for
Medicaid funding. CMS
revoked the center222s certification following several inspections that uncovered
staffing and safety issues. The 150
-
bed center provi
des psychiatric care to seniors. State officials say
they are working to resolve the issues and estimate that
they will apply for recertification in the 40 days.
Virginia will pay $1.14
million
monthly to operate the center until CMS recertifies it ( AP via WJTV, 10/12 ).
West Virginia
Study Finds Substance Abuse Costs West Virginia Welfare System $95 Million Annually
: A study
by the
West Virginia Partnership to Promote Community Well-
Being and the West Virginia Prevention Resource
Center found that substance abuse costs West Virginia
222s welfare s
ystem
$95 million annually. The
annual cost includes $41 million for the child and adult welfare system, $29 million for Temporary
SAMHSA222s Weekly Financing News Pulse: State and Local Edition
October 13, 2010
10/13/2010
6
Assistance for Needy Families (TANF)
and related programs
, and $24 million
for the Supplemental
Nutrition Assistance Program
.
The authors also determined that the largest contributing cost
factor was
helping children living with individuals with substance abuse problems. If current trends continue, the
study projects that substance abuse will cost the state222s welfare system
$
346 million in 2017. The study
is the fourth in a series examining the financial impact of substance abuse on West Virginia. P
revious
studies examined substance abuse cost
s for
the
school
,
health
,
and criminal justice systems ( The Charleston Gazette, 10/9 ; Charleston Daily Mail, 10/10 ).
W
isconsin
Public Policy Forum Recommends Transformation of Mental Health Services at MCMHC
: On October 6,
the Public Policy Forum released a report
recommending a transformation of mental health services in
Milwaukee County. The report exami
nes
services at the Milwaukee County Mental Health Complex
(MCMHC) and proposes significantly reducing inpatient capacity
,
eliminating the MCMHC222s four 24
-
bed
inpatient psychiatric units and replacing them with a single
16-
bed unit. In addition, the authors suggest
privatizing most inpatient services through deals with local hospitals while expanding outpatient
services
through
community agencies. The report projects that the transformation will
take five years
and suggests that
,
though
potentiall
y costly
in the short
-
term
,
it may reduce
long
-
term
costs
by focusing
on prevention and community
-
based care. The Public Policy Forum222s proposal is in opposition
to a
proposal by county officials to build a new complex to replace the MCMHC, estimated to c
ost $400
million ( Milwaukee Journal Sentinel, 10/6 ).
