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State hospitals accredited but rising civil‑commitment costs prompt supplemental request, DHW says
Summary
Department officials said all three state psychiatric hospitals have received accreditation and are beginning Medicaid billing, but civil‑commitment costs — shifted to the state by 2022 law — have increased and the department asked for a $2.6 million one‑time supplemental to cover mental‑hold and commitment expenses.
Department of Health and Welfare officials told the Joint Finance‑Appropriations Committee that all three state psychiatric hospitals have achieved accreditation and are beginning Medicaid billing, producing some federal receipts, but civil‑commitment costs have risen and the department asked for a one‑time supplemental.
Alex Williamson, legislative services analyst, told the committee the department's 2026 request includes a one‑time supplemental of $2,600,000 from the General Fund to cover increased civil‑commitment expenditures. The request follows a 2022 law — Senate Bill 1327 — that shifted responsibility for those costs to the state.
Director Alex Adams said the accreditation outcome has allowed hospitals to bill Medicaid and recapture federal…
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