Council hears North Star Center plan for regional behavioral-health hub; funding options discussed

Representatives seeking to develop the North Star Center told the Sedro-Woolley City Council they plan a regional behavioral-health facility with crisis stabilization, acute detox and co-occurring treatment beds and asked the council for direction on whether and how to contribute operating-startup funds.

Presenters said the completed facility would include three 16-bed units: crisis stabilization, acute detox (withdrawal management) and co-occurring behavioral-health treatment, for a total of 48 beds on the campus. Monica (last name provided in the packet) described the clinical need: local first responders currently have limited places to take people in crisis; inpatient treatment often requires sending people to distant counties. George (the project's financial lead) told the council annual operating costs are modeled at about $12 million, with a notable ramp-up and staffing requirement in the first year.

The project team described multiple potential funding sources and contracting approaches. They said Pioneer Human Services (the planned operator) and local partners have sought state and legislative start-up support and that the project has already received a modest direct appropriation (presenters cited $300,000) to help with startup costs. The presenters asked whether the city would prefer a direct grant to the operator or an interlocal agreement with the county as the contracting vehicle; they noted that using the county can simplify administration but that direct contracting gives cities more direct oversight.

Council members and the police chief asked how the beds would be prioritized and how law-enforcement drop-offs would work. Presenters said the facility would aim to give first responders rapid drop-off for people in crisis and to keep turn-away rates low, but they cautioned that short-term crisis beds are an unknown at start-up and that no jurisdiction can be guaranteed a dedicated daily allotment of beds. Staff said detox and crisis stays are expected to be short (hours to days), which enables turnover; co-occurring treatment stays are longer.

Questions from council included whether other counties or cities would use the beds, whether involuntary-treatment (ITA) capacity could be expanded and how insurance and billing would cover services. Presenters said the facility will bill Medicaid/Apple Health and managed-care organizations where possible and that the Behavioral Health Administrative Service Organization (BHASO) will be involved for uninsured patients after state carve-outs take effect. They also outlined accountability options: the city's funding could be made a reimbursable expense with reporting, or the city could contract through the county under an interlocal agreement to limit administrative burden across jurisdictions.

Council members asked the county to prepare an interlocal agreement and staff noted an ILA had been circulated to council by email for later action. Presenters said they are available to return with a more detailed budget or to meet during a council work session if the council wants more granular financial information before deciding.