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COOs and community mental health leaders warn of funding squeeze and capacity gaps
Summary
Coordinated care organizations and community mental health program leaders told the House committee that recent investments increased utilization but that CCOs face unsustainable costs, crisis stabilization centers lack operational funding, and predatory telehealth and transition risks threaten community providers' viability.
Representatives from Oregon's coordinated care organizations and community mental health programs used the committee's informational hearing to describe how recent investments have driven utilization while exposing funding and operational strains across the safety net.
Jeremiah Rigsby of CareOregon said CCOs receive global budgets from OHA and have reinvested pandemic-era and CCO funds (CareOregon cited roughly $150 million) into workforce retention and community clinics. Those investments, combined with state appropriations, produced a reported 30–40% rise in behavioral health utilization. Rigsby said CCOs'medical-loss ratios climbed well above targets (he reported figures up to about 120%),…
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