Michigan lawmakers hear pleas to expand psychiatric beds, workforce in Northern Michigan

The Michigan House Oversight Subcommittee on Public Health and Food Security heard multiple hours of testimony Wednesday about a shortage of inpatient psychiatric beds and related services in Northern Michigan, with witnesses urging state action to expand bed capacity, bolster the behavioral health workforce and restore community crisis response teams.

The testimony came as Chair Bierlein said the hearing was planned as the committee's final formal session on the psychiatric bed shortage and that the committee's office intends to compile a comprehensive report with policy and legislative recommendations based on the testimony received. Representative Sernigloo moved to approve the minutes of the committee's July 1 meeting; hearing no objection, the minutes were approved.

Why it matters: Witnesses described a patchwork system that forces families to travel long distances for inpatient care, results in people being boarded in emergency departments for days, and places substantial demand on jails and law enforcement when inpatient options are unavailable. Several testifiers said rural Northern Michigan faces capacity and workforce shortages that make short hospital stays ineffective and increase the likelihood of repeated crises.

Toni Stanfield, a psychologist and co‑founder of Before, During, and After Incarceration (BDAI), said there are currently only 32 adult psychiatric beds available north of Grand Rapids and that jails are acting as de facto psychiatric holding facilities because of the shortage and because Medicaid does not reimburse for many psychiatric services delivered during incarceration. "Our jails have become the de facto psychiatric holding facilities, a role that they were never designed or trained to fulfill," Stanfield said. She urged a regional investment in inpatient psychiatric beds and development of collaborative county–state models and stabilization units similar to examples in Bexar County, Texas, and Maricopa County, Arizona.

Sarah Lee Sullivan, a Traverse City resident and community advocate, described regional capacity gaps using figures she attributed to Michigan Department of Health and Human Services (MDHHS) designations. She told the committee that Health Service Area 7, an 18‑county region in Northern Michigan, averages roughly 10 adult psychiatric beds per 100,000 residents — well below the number MDHHS recommends — and that the area has zero inpatient psychiatric beds for children where MDHHS recommends 16. “When someone suffers a mental health crisis, emergency departments become the primary option,” Sullivan said, adding that EDs are not designed for psychiatric care and frequently board patients for days or longer.

Megan Morrissey, clinical supervisor of the behavioral health department at Child and Family Services of Northwestern Michigan, described workforce and service reductions that she said will worsen capacity problems. Morrissey said Northern Lakes Community Mental Health (Northern Lakes CMH) laid off nearly 40 people and that the FAST mobile crisis team for children had been dissolved at short notice. She said that without the FAST team, families often must go to already overburdened emergency departments and that many children who present at EDs do not meet current hospitalization criteria but still need timely assessment and community‑based response.

Several other witnesses described similar family experiences and local strain. Judy Barrett, past president of NAMI Grand Traverse, recounted years of repeatedly transporting a family member across the state for inpatient care and the lack of step‑down services. Tom Bussemera, a long‑time jail chaplain and BDAI co‑founder, described jail conditions and cited a Wayne State University behavioral health survey that found about 38–40 percent of a jail population were prescribed psychotropic medications, illustrating unmet clinical need among incarcerated people.

Kate Dahlstrom, president of NAMI Grand Traverse, offered a regional proposal: a small Northern Michigan mental health campus combining inpatient beds, residential follow‑up care and complementary therapies. Dahlstrom said Munson Medical Center has a 17‑bed adult psychiatric unit and cited other local numbers; she proposed campus features including 10–12 adult inpatient beds, 8–10 youth beds, a few high‑acuity beds and residential step‑down services to reduce readmissions.

Dr. Felicia Brabeck, a clinical psychologist and former member of the Michigan House, framed the shortage as part of a longer erosion of the behavioral health continuum of care, with gaps in intensive outpatient, partial hospitalization and inpatient services. Brabeck called for investments in both clinical capacity and workforce supports, including licensure and training changes lawmakers have considered in prior sessions.

Discussion vs. formal action: The hearing produced direction but no binding policy decisions. Chair Bierlein stated the committee will continue stakeholder meetings and prepare a report with recommendations. The only recorded formal action at the meeting was the approval of July 1 minutes on a motion by Representative Sernigloo; the committee did not vote on legislation.

Clarifying details provided during testimony included the count of adult beds north of Grand Rapids (32, as stated by Stanfield), claims about mobile crisis team cuts and layoffs at Northern Lakes CMH (Morrissey said nearly 40 layoffs and dissolution of the FAST team), and regional bed‑per‑population figures offered for MDHHS Health Service Area 7 (Sullivan said ~10 adult beds per 100,000 and 0 child inpatient beds where MDHHS recommends 16). Speakers recommended actions ranging from funding new inpatient and step‑down capacity, creating county‑state partnership stabilization units, expanding crisis response and mobile teams, to workforce incentives and scholarships.

The committee heard repeated testimony that a lack of parity and standardization in insurance reimbursement contributes to short hospital stays and limited follow‑up. Several witnesses urged state legislative action on reimbursement standards and workforce licensing to increase the number of practicing clinicians capable of filling inpatient and community roles.

What's next: Chair Bierlein said staff will use the testimony to produce a comprehensive report with policy and legislative recommendations; committee members and witnesses indicated follow‑up work will include investigating specific funding and organizational causes for recent local service reductions. No deadlines or votes on specific bills were announced at the hearing.

Votes at a glance: Representative Sernigloo moved to approve the minutes of the July 1 meeting; hearing no objection, the minutes were approved without recorded roll‑call votes.

Sources: witness testimony before the House Oversight Subcommittee on Public Health and Food Security, October 25, 2025 (virtual hearing).