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Ottawa County CMH board warns of Medicaid revenue shortfall as state RFP and regional reorganization loom
Summary
Board leaders and providers told the Community Mental Health of Ottawa County board that a pending MDHHS RFP and court decisions could change who manages Medicaid benefits and that region-wide Medicaid revenue projections are down roughly $2.8 million, worsening a FY2025 deficit and threatening provider stability.
Community Mental Health of Ottawa County leaders told the board on Nov. 21 that a pending state Request for Proposals (RFP) and a related court process could reshape how Medicaid benefits are managed in Michigan and that the agency faces a substantial budget shortfall for fiscal 2025.
Michael, the agency's chief executive, told the board a December court ruling and the state's RFP timeline may result in a change to how many PHP/PIHP entities run regional Medicaid services and whether CMHs retain a co-management role or become contracted providers. He said the state has the authority to set the number of PHPs and that any selection would subsequently be reviewed by the Centers for Medicare & Medicaid Services (CMS) for federal approval.
The most immediate financial concern, Michael said, is a regional Medicaid revenue projection that is about $2.8 million lower than previously expected. That reduction increases an anticipated deficit that had been estimated at up to roughly $3 million in a worst-case scenario. Michael said volatility in…
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