Ottawa County CMH proposes residential rate increases amid funding deficits

The Ottawa County CMHOC Board Meeting on April 25, 2025, spotlighted urgent discussions surrounding proposed rate increases for residential service providers. The need for these adjustments stems from rising care demands for residents, prompting a call for a new rate structure to be implemented in the next fiscal year.

During the meeting, officials highlighted that the current rates for residential providers are inadequate, with some providers facing operational challenges due to insufficient funding. The proposed changes aim to address the staffing and care needs of residents, with rates potentially increasing from $200 to $300 per day. This comes as other community mental health centers in the region are reportedly cutting their rates, raising concerns about the sustainability of local providers.

One significant point of contention was the proposed increase in the case management and treatment planning rate for Arbor Circle, which would rise from $85 to $91 per unit. This adjustment is expected to impact the budget by approximately $17,000 annually, serving a limited number of young adults.

Board members expressed concerns about the timing of these rate increases, especially in light of a projected $4 million deficit. Some members questioned whether it was prudent to raise costs when the financial future remains uncertain. However, CMH officials defended the necessity of the increases, emphasizing that without them, many residential providers could face closure, leading to a crisis in care availability.

The discussion underscored the delicate balance between ensuring adequate funding for essential services and managing the financial realities of the CMH budget. As the board prepares for future meetings, they will need to navigate these challenges carefully, weighing the immediate needs of providers against the long-term financial health of the organization.