COMPASS HEALTH 4526 Federal Avenue Everett, WA 98203
News Release
Contact: Maryann Gillis
(425) 349-8122 direct
Proposal to Cut State Community Mental Health Budget
Would Shift Cost to More Expensive Settings
(Everett) Feb. 8, 2002 – People with mental illnesses are turned away from services every day in Washington and the state legislature is now debating actions that would deny services to even more.
Governor Gary Locke has proposed a 3 percent ratable reduction in state funding ($4.65 million) to the Regional Support Networks (RSNs), the quasi-governmental bodies that direct the flow of Medicaid mental health dollars to communities. Because the federal government matches these dollars, this cut would mean a total loss of $9.3 million to Washington’s public mental health system.
"The sad truth in Washington is that there are more people with mental illnesses in our communities than can be served," said Jess Jamieson, president and CEO of Compass Health, which, with more than 12,000 clients throughout Snohomish County, is one of the largest community mental health providers in Washington.
"Currently, we have to turn away an average of 360 people with significant mental health issues each year because we are down to the bare bones of our capacity. As such, we are only able to serve those who have the most critical needs. Governor Locke’s proposal to cut 3 percent of state funding to community mental health services would create a $936,883 budget shortfall for Compass Health, requiring us to cut service to 827 more people and reduce intensity of services to hundreds more."
The Washington Community Mental Health Council estimates the statewide effect of the proposal would mean 8,271 people would be cut off from outpatient services – a 6.9 percent drop statewide.
"There’s no fat left to trim in the community mental health system," said Jamieson. "State and federal dollars have already been reduced. Our United Way funding was cut 35 percent at Compass Health last year and we’re experiencing another 19 percent cut this year."
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Cost Shifting
According to a fact sheet issued by the council in January, "Individuals cut off from services will not disappear from our communities, but will surface in more expensive settings such as jails and hospital emergency rooms. Over time, the costs for serving people in these settings will exceed the ‘savings’ from the ratable reduction," the council noted. "It is more cost-effective to maintain people in community settings and a better clinical model. In fact, it costs less than half as much to provide community mental health care as it does to pay jail or hospital costs," reported the council.
Here is a sample of cost-shifting comparisons based on state averages:
Compass Health joins other behavioral health providers in Washington in opposing further cuts to state mental health funding for direct client services. Alternatives proposed include examining new state revenue streams, accessing rainy day funds and streamlining administrative inefficiencies across all government agencies.
Said Jamieson, "We elect our state legislators to represent us. Part of that representation should be to ensure responsible budgeting that doesn’t shift costs to more expensive settings. Another is to represent all citizens equally, including people with mental illness."
Compass Health, a non-profit agency, has been serving children, families and adults in northwest Washington since its origins as Luther Child Center in 1901. For more information about Compass Health and the services it offers, visit www.compasshealth.org .