Park County officials flag large state mental hospital invoices after loss of Medicaid accreditation

County staff told the Park County Board of County Commissioners on Feb. 3 that a set of invoices from the DPHHS state mental hospital covering treatment from November 2022 through November 2025 may impose substantial costs on the county.

Erica told the board that the county had paid about $150,000 to related invoices last spring and that the new batch of invoices represents a significant increase. "Since the state hospital lost their Medicaid, accreditation, that's why we're getting these big bills," she said in the meeting, linking the accreditation loss to the increase in county charges.

Staff said the county attorney's office has received the details and will review the invoices. Commissioners noted discrepancies in some bills — examples discussed included multiple-day stays with high per-day charges — and asked the attorney's office to determine which invoices the county is obligated to pay, whether older invoices can be limited, and what Medicare/Medicaid rates should apply.

Kristen urged commissioners to raise the matter with contacts at the upcoming Mako convention and suggested speaking with Karen Alley there; commissioners said they would discuss the issue with other counties and with state contacts to explore whether intergovernmental remedies or policy fixes are possible.

Why it matters: County staff said the county's general fund is already stretched and that unexpected, retroactive bills from the state hospital are creating budgetary pressure. Commissioners and staff assigned follow-up to county attorneys and finance directors to determine legal obligations and possible paths for relief.

Next steps: County attorneys will review invoice details and report back; commissioners said they will raise the issue with peers and state contacts at the Mako convention to seek broader solutions.