East Central region outlines closeout plan as Iowa moves to new behavioral health system; counties asked to adopt dissolution resolution with Dec. 31 effective‑

Representatives from the East Central regional behavioral health structure briefed the board on the required closeout work as Iowa transitions to a new statewide behavioral‑health system created by House File 2673 (2024). Staff said the new system goes into effect July 1, 2025, and that regions must submit closeout plans and budgets for the state to process remaining obligations.

Region staff (identified in the meeting as representatives from the regional governing board) described required closeout elements: an estimated budget for July 1–Dec. 31, 2025 to cover outstanding bills and staff costs; a communications plan to notify clients and providers; contract and asset reconciliations; record‑retention plans; and interim audits (a final FY2025 audit plus a short FY2026 audit for July–December because expenditures will exceed $100,000). Staff noted the region had kept personnel and many assets at county level, which simplifies disposition.

Closeout accounting and state support: Staff said they projected a deficit (reportedly about $246,000) that included high-dollar bills to the state mental‑health institute (MHI), estimated at about $258,000; they said the state has indicated it will assist regions with deficits so providers and staff get paid, but county officials should not expect an immediate, fixed commitment and should plan for reconciliation. Staff said providers should submit May and June invoices by Aug. 31 to ensure payment during closeout.

Dissolution resolution and timing: The region’s governing board decided to ask each county to pass a resolution to dissolve the 28E agreement; staff said the governing board set an effective dissolution date (the board referenced December 31 in discussion) and that counties may pass the resolution any time before that effective date. Staff explained that some elements of the region—such as a mental‑health advocate—will continue under a separate 28E; staff said they will return with final 28E language once the state clarifies what the ASO will reimburse for the advocate role.

Operational transition and concerns: Staff said the state-selected administrative services organizations (ASOs) and disability access points (DAPs) will perform functions in the new model; they said the ASO will hire service navigators (four in the district) and that many operational details remain to be finalized, with stakeholder meetings expected in May. County board members and staff expressed concerns about potential service gaps, provider availability and the timeline for notifications; presenters acknowledged the process may be "bumpy" and urged counties to plan communications for clients and providers.

Why it matters: The state-driven reorganization changes how behavioral‑health services are funded and administered; closeout details, claims deadlines and the dissolution of regional agreements have fiscal and service‑delivery impacts for counties and clients.

Attribution: Statements in this article are attributed to the East Central region presenters and to board discussion during the April 22 meeting. The transcript identifies the enabling statute as House File 2673 (2024).