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Committee renews blanket approval enabling $1.3 billion in mental‑health direct‑care contracts

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Summary

The Contract Review Committee renewed a blanket approval that allows the Alabama Department of Mental Health to manage direct‑care contracts totaling about $1.3 billion to community providers, a move the department says prevents service lapses for people receiving mental‑health, substance‑use and developmental‑disability care.

The Contract Review Committee on [date not specified] renewed a blanket approval letter that allows the Alabama Department of Mental Health (ADMH) to continue managing direct‑care contracts to community providers that total about $1.3 billion, department officials told the committee.

ADMH chief of staff Collier Tynes Dixon said the department’s total budget is $1.57 billion and that approximately $1.3 billion — about 86% of ADMH’s budget — goes to community programs. Dixon told the committee the department currently certifies 3,194 active programs and that those programs served “over 130,000 people” in fiscal 2024. He said direct‑care contracts are numerous and complex, and that many provider organizations are…

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