SUD providers warn outpatient rate study findings require funding to avoid program closures

Substance use disorder treatment providers told the Senate Human Services Committee that an outpatient rate study released to the Legislature found SUD outpatient rates are out of date and many need substantial increases, and they urged the committee to include rate adjustments in the budget.

Brian Zervis, executive director of MARCH (a statewide association of substance use disorder programs and professionals), said an analysis presented in January shows eight of nine SUD outpatient rates need increases, with an average increase of 68%. He told the committee that in the last three years Minnesota has seen a net reduction of about 47 SUD programs statewide and that closures have disproportionately affected Greater Minnesota — “Over 40% of those are closures in Greater Minnesota.”

Why it matters: Witnesses argued that adequate SUD outpatient rates are a cost-effective investment because treatment reduces downstream expenditures in public safety, child protection, and emergency health care. Zervis asked lawmakers to consider available unallocated funds in the governor’s proposal and to pursue a balanced approach that addresses both regulation and rate adequacy.

Ending: Providers asked the committee to work SUD rate adjustments into fiscal planning; the committee acknowledged the request and said it would review the rate study as part of budgeting.