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State hospitals accredited, but civil-commitment costs and longer stays strain psychiatric hospitalization budget

2321323 · January 20, 2025
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Summary

Officials told the legislature that all three state psychiatric hospitals are now accredited and billing Medicaid, reducing general-fund needs, but civil-commitment expenditures and an increase in long stays beyond 60 days have driven supplemental requests and higher state costs.

All three state psychiatric hospitals have received accreditation, Department of Health and Welfare Director Alex Adams told the Joint Finance-Appropriations Committee, allowing hospitals to bill Medicaid for eligible patients and produce federal receipts that reduce general-fund costs.

Adams said State Hospital West has billed $1.6 million and received $1.3 million in Medicaid receipts since accreditation. He said State Hospital North was the most recent to receive accreditation.

Despite accreditation gains, officials asked the committee for a one-time general‑fund supplemental of $2,600,000 to cover increased civil‑commitment expenditures for fiscal…

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