New Mental Health Requirements May Force Some out of Business
Friday, December 11 2009
by Rose Hoban
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People from mental health agencies say new state rules will cause some providers to go out of business.
Previously under mental health reform, the state Division of Mental Health created community support. But the program was abused, wasting hundreds of millions of dollars on poor quality services. The general assembly ordered the program phased out.
Now, organizations are being told they need to hire medical and clinical directors, plus a quality control manager.
John Tote from the Mental Health Association says it's too much for many small and mid-sized programs.
"Right now, there is not a cost model out there that helps to pay for that if you don't already have it in your agency," says Tote. "And certainly with the cuts the general assembly imposed, with the rate cuts from Medicaid, to then be able to have that expense covered is going to be very difficult."
But, Mike Watson from the Division of Mental Health says provider agencies need better quality and better internal oversight to avoid a repeat of the community support debacle.
"What we're trying to do is get people in charge of organizations that have the expertise, that have the licenses that have the professional background to make sure that we do deliver quality services," says Watson.
The changes are slated to be phased in early next year.
