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Michigan mental health privatization plan sparks concern from local providers

Oakland County commissioners formally oppose the plan while Macomb County prepares similar action as service providers worry about patients falling through the cracks.
Michigan mental health privatization plan sparks concern from local providers
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WARREN, Mich. (WXYZ) — The Michigan Department of Health and Human Services plans to privatize community mental health programs across the state, sparking concerns from service providers and local officials who worry the change could disrupt critical care for vulnerable residents.

Watch Randy Wimbley's video report:

Michigan mental health privatization plan sparks concern from local providers

William Kent credits the Crossroads Clubhouse in Warren with saving his life after a severe mental health crisis.

"When I got out of the hospital, I felt like a burnt out light bulb. I was completely broken," Kent said. "For a good chunk of a year after that, I was alone, I was isolated, I was trapped in my room with no one to talk to, not even my parents."

The Crossroads Clubhouse provided Kent with the support he desperately needed.

"It's the best thing that ever happened. It just means so much. It solved my boredom, it solved my loneliness. It gives me something to get up and do every day," Kent said.

Crossroads Clubhouse is among many community mental health service providers questioning their future as MDHHS moves forward with plans to privatize programs currently funded through Medicaid and state and federal dollars.

"It's going to lead to delays, services being denied, more paperwork," Kent said.

Bruce Dunton, program supervisor at Crossroads, fears serious consequences if the state's plan proceeds.

"My biggest fear is that this is such a huge change in the system. Too many people are going to fall through the cracks. You're going to have a significant increase in recidivism, people cycling in and out of the hospital. I think there's going to be a huge cost to the citizens," Dunton said.

Watch our full interview with Bruce Dunton in the video player below:

Web extra: Bruce Dunton with Crossroads Clubhouse talks about MDHHS plan to privatize mental health programs

Critics worry private organizations may prioritize profits over patient care.

MDHHS defends the plan, saying it will address issues in community mental health programs including service quality, accountability and efficiency — problems they claim to have identified through a survey of Medicaid beneficiaries and their families.

"The proposed bidding process is designed to mitigate these issues by establishing a more streamlined, transparent and equitable behavioral health framework," Lynn Sutfin, an MDHHS spokesperson, said in a statement.

Local governments are pushing back against the state's initiative. The Oakland County Board of Commissioners recently passed a resolution opposing the plan and urging Gov. Gretchen Whitmer, MDHHS and the Legislature to abandon it.

Macomb County lawmakers from both political parties plan to follow suit with similar opposition.

"Here in Macomb, we're doing the right thing: we're serving our people, everything here is local, we have local partnerships, we have fantastic partnerships and we don't want to lose any of that. This proposal would hurt that," said Phil Kraft, a Republican Macomb County commissioner.

"This is not a partisan issue; this is a people issue and we want to make sure the residents of Macomb County receive the care they deserve," said Michael J. Howard, a Democratic Macomb County commissioner.

The Detroit Wayne Integrated Health Network, which serves approximately 123,000 children and adults, emphasized their commitment to the community in a statement: "We understand the immense responsibility we have been given and we go above and beyond in supporting the people we serve and the hundreds of Providers in our System of Care."

MDHHS plans to request bids to run community mental health service programs this summer, with a target service start date of October next year.

You can read the full MDHHS statement below:

"The Michigan Department of Health and Human Services (MDHHS) is changing to a competitive procurement process for the state’s Prepaid Inpatient Health Plan (PIHP) contracts to help ensure Michigan Medicaid beneficiaries have access to behavioral health care services when and where they need them.

"MDHHS proposed the competitive bidding process to address issues within the current PIHP system that compromise service quality, accountability and efficiency. Informed by extensive feedback collected [michigan.gov] through a recent survey of Medicaid beneficiaries and their families, advocacy groups, community-based organizations and other partners, MDHHS identified several issues in the 10-region structure – fragmentation, service inconsistency, and limited accountability.

"The proposed bidding process is designed to mitigate these issues by establishing a more streamlined, transparent and equitable behavioral health framework that better serves Michigan residents and address conflicts of interest that exist within the current system."