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Regional MHDS CEO warns staff may lose jobs as state shifts behavioral health system; asks county for transitional support
Summary
A regional mental-health official told Iowa County supervisors the state ecision to select a single statewide administrative services organization for behavioral health could eliminate regional staff positions when the region ends June 30, and asked counties to support a limited staff retention plan to complete claims and wrap-up work.
A regional executive told the Iowa County Board of Supervisors that state legislation has reorganized mental health and disability services and that the East Central Region was not selected to operate the statewide administrative services organization (ASO), a change that could leave regional staff without positions when the region ceases operations June 30.
The speaker said House File 02/1973 realigned the MHDS system into two streams: behavioral health (including mental health and substance-use services) overseen by an administrative services organization, and aging-and-disability services administered through a disability access point. The region had submitted a bid to serve as an administrative services organization but said the state selected the Iowa Primary Care Association (PCA) instead. The speaker said a separate decision on disability access point designation was pending at the time of the meeting.
The region—xecutive told the board that, without being named the ASO, the region—ffectively ceases to exist on June 30 and that about 34 staff members could lose jobs or retire. The executive described immediate steps the region has taken and proposed to minimize service disruption: offering staff up to five mental well-being coaching sessions, scheduling HR and IPERS sessions, arranging job-search help (resume and interview assistance), and coordinating with Johnson County to act as fiscal agent to wrap up claims and accruals.
The speaker said the state has asked regions to submit a transition plan by April 1 in lieu of the usual annual service-and-budget plan and that guidance from the Department of Health and Human Services (HHS) was expected. The executive said the legislature introduced companion bills that may permit HHS to use an existing incentive fund to help finance the transition at the department's discretion, but that no specific amounts were guaranteed.
On staffing and retirement the executive said one complicating factor is that the incoming ASO reportedly will not be "IPERS-eligible" (IPERS is the Iowa Public Employees' Retirement System), which could affect long-term county employees who were close to meeting retirement thresholds. The region is asking for cooperation from county boards if the region retains a small number of employees to process claims and close out financial obligations after June 30.
Specific county request: the executive asked Iowa County to allow one region staff member, identified in the meeting as Belinda, to remain employed (paid by Johnson County) for a few months to process FY25 accruals and claims; the speaker said Johnson County would be reimbursed by the region and that the county—xpense would be budget-neutral if HHS approves the transition plan. The speaker said declarations to transfer advocate and provider data to the state system had already been signed at the regional level and advised counties that equipment (computers, desks, vehicles) would need disposition decisions if the region closes.
The speaker also said counties will still be required to pay certain commitment costs (transportation and attorney fees) and that counties could choose whether to pay those costs and seek reimbursement from the ASO or have providers bill the ASO directly.
The executive closed by emphasizing the region's priorities during the wind-down: supporting an orderly transition with partners, maintaining service administration integrity, ensuring clear communication to providers and staff, and protecting staff wellbeing through counseling and employment assistance.
No formal board vote on the regional transition or on the request for Belinda was recorded in the meeting transcript; the speaker said any county acceptance of staffing support would require the county to include related contract language in its budget and that final approval would depend on HHS uthorization of transition funding.
