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Osawatomie State Hospital seeks funding for nursing shortfall, psychologists and renovations
Summary
Osawatomie State Hospital officials told the Committee on Social Services Budget they requested $11 million for agency nursing staff and sought two psychologist positions to reduce competency wait lists; the hospital continues renovations and gradual recertification of CMS‑certified beds.
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OSAWATOMIE, Kan. — During a Committee on Social Services Budget presentation, Osawatomie State Hospital officials described requests to cover nursing staff shortfalls, to hire two psychologists for inpatient evaluations and to continue renovations that restored certified beds at the campus.
Dayton Lamondian, senior fiscal analyst, summarized the Osawatomie FY2025 approved budget of about $57.4 million (including $45.5 million SGF) and the agency’s request of roughly $75.7 million for FY2026. He said Osawatomie requested $11 million to address agency nursing‑staff needs — roughly half of the hospital’s contractual nursing budget — and that the Legislative Budget Committee did not recommend the enhancement while the governor included it in the executive recommendation.
Why it matters: Osawatomie is the eastern‑third counterpart to Larned State Hospital. The facility was decertified by the Centers for Medicare & Medicaid Services (CMS) years earlier and has been pursuing renovations and recertification of beds; certified acute beds on campus are now operating under the Adair Acute Care unit.
Psychologists and operations
Lamondian noted the hospital reported employing four psychologists and a department director who together serve about 159 patients on the Osawatomie campus. The agency requested funding for two additional psychologists (two FTEs and $250,000) to increase evaluation capacity because staff could not focus on court‑related evaluations due to other duties; the governor recommended funding this item while the LBC did not.
Other items discussed
- 24/7 shift differential: Osawatomie’s revised estimate includes an amount transferred from the department to continue the permanent shift differential approved by last year’s appropriations action.
- Staffing and renovations: Lamondian described other increases attributable to filling positions (registered nurses, MHDDTs) and to renewing capital projects such as building repairs, pharmaceuticals and replacement equipment.
Hospital testimony and community context
Ashley Byram, superintendent at Osawatomie, described operational improvements after renovations (now more private rooms on the acute unit), the effect of recruitment and retention bonuses (vacancy rate fell from 39% to 31.8% after bonuses were implemented) and reduced weekly agency nursing costs after bonuses were offered. Byram said average weekly agency nursing expenditures dropped from about $355,000 to about $277,000 in the latest month cited.
Ending
Hospital officials urged continued investments in staffing and clinician capacity to reduce wait lists, maintain CMS certification progress and ensure safe care. The committee will consider those requests in the Appropriations process.

