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Ottawa County CMH board warns of deepening Medicaid revenue shortfall as state PHP restructuring looms
Summary
Ottawa County CMH executive staff told the board Nov. 21 that a pending state restructuring of Medicaid PHPs and revised revenue projections could widen a FY deficit; the board discussed forecasting flaws, cost controls, and a possible push for a needs-based regional funding model.
Ottawa County — Executive staff told the Ottawa County Community Mental Health board on Nov. 21 that an ongoing state restructuring of Medicaid prepaid health plans (PHPs) and new regional revenue estimates threaten to deepen a fiscal shortfall and could change the county organization's role in managing Medicaid benefits.
Michael, speaking for agency leadership, said a two-day court hearing in early December (Dec. 8–9) and an anticipated ruling around Dec. 10 could affect the Michigan Department of Health and Human Services' RFP process and the state's plan for how regions and PHPs are configured. He said the core question remaining is whether local CMHs will continue to co-manage Medicaid benefits or be reduced to service-provider roles under the new structure.
The more immediate concern shared with the board was a…
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