Ottawa County CMH board approves contract and rate changes to shore up residential providers amid budget shortfall

The Ottawa County Community Mental Health board approved amended, renewed and new service contracts and the agency's financial statement after an extended discussion about underfunding of Medicaid-paid residential services and the risk of provider closures.

Dr. Brashears, executive director of Ottawa County CMH, told the board the system is "in crisis" and that some residential providers warned they could close unless reimbursement rates rise. "We must provide services regardless of the funding level," Brashears said, explaining the board's decision to move more costs onto Medicaid funding streams rather than county millage dollars.

The action package included amended and renewed residential service contracts, a set of new service contracts and approval of the financial statement. Finance committee chair Bonnie reported that the committee reviewed requests and concluded the rate increases and contract changes were necessary to preserve placements for the county's most vulnerable residents. The board voted to approve the items by roll call.

Why it matters: board members and local providers said current Medicaid reimbursement rates in Ottawa County are below…