East Central Region to wind down after state selects statewide nonprofit; CEO outlines staff supports and transition steps

May Hagen, CEO of Mental Health Disability Services of the East Central Region, told the Johnson County Board of Supervisors on Feb. 12 that the state selected a single statewide nonprofit to serve as the behavioral health Administrative Services Organization and did not award the ASO role by region. "The East Central Region was not selected as the behavioral health administrative services organization for District 7," Hagen said. She added the state has also consolidated the disability access-point procurement and that the region is still awaiting notification on whether it will be designated a Disability Access Point, with the state’s deadline for that notice on Feb. 21.

The announcement means the East Central Region will cease to exist on June 30 unless it is named to a continuing role, Hagen said. "As was passed in House File 2673 last session, the region itself ceases to exist on June thirtieth of this year," she said. Hagen told supervisors the budget the state published for a Disability Access Point is substantially smaller than the budget for running an ASO and that the region must now transition away from its current structure even if it receives a Disability Access Point award.

Hagen framed five priority initiatives the regional governing board approved to guide the next five months, including: supporting an orderly handoff to the new ASO, maintaining service quality through June 30, improving communications to reduce speculation, and supporting the region’s workforce through occupational transitions and mental-health supports. She said the region employs 34 staff across nine counties and emphasized steps to help them find employment and to ease the transition for those who remain until the region sunsets.

To support staff well-being, Hagen said the region secured five no‑cost mental well‑being coaching sessions for employees through Abby’s Center for Community Mental Health and arranged a Feb. 25 resume-and-interview day with HR professionals and an IPERS representative to meet with staff. "The first positive action that I did after we found out the news is I arranged with Abby’s Center for Community Mental Health for all of our staff to be eligible for 5 mental well‑being coaching sessions," Hagen said.

On staff retention pay, Hagen said the regional governing board approved a graduated retention pay plan for employees who remain through monthly milestones, noting the plan is intended as an expression of gratitude rather than a guarantee to keep employees from taking other jobs. She said county payroll offices will need to coordinate payouts and that some counties may need budget amendments this spring to cover the changes.

Hagen also described operational steps the region must complete before June 30, including transferring assets such as vehicles and office equipment that may technically be in county names under the region’s agreements. She said the region is coordinating with county finance offices and the regional attorney to ensure transparent transfers and to address unemployment and other post‑employment obligations.

Supervisors thanked Hagen for the update. Supervisor Green (chair) said the county will remain a partner during the transition; other supervisors praised the region’s focus on staff well‑being and service continuity. Hagen said she would continue to share updates after her upcoming meetings with the Iowa Department of Health and Human Services (HHS).

Why it matters: the change affects a multi‑county behavioral health administrative structure and the continuity of services and staff across nine counties. Even if the region is named a Disability Access Point, the smaller state budget for that role means a reduced operational footprint and additional transition tasks before June 30.

What comes next: HHS will notify applicants about the Disability Access Point award (state deadline identified in the procurement as Feb. 21); the East Central Region will finalize asset transfers, implement the retention-pay schedule approved by its governing board and continue to coordinate with counties and HHS on service handoffs and staffing implications.