Looming State Budget Cuts Create New Challenges: Provider Organizations Need Anticipatory Management Strategy & Fresh Tactics

OPEN MINDS The Behavioral Health & Social Service Industry Analyst

Industry Analysis

It is no secret that state budgets are in trouble. With health care in general—and behavioral health and social services in particular— dependent on state financing, I think the ‘end of the recession’ is nowhere in sight, despite the pronouncements of economists. Look for reductions in Medicaid—reduced eligibility, reduced service coverage, reduced provider fees, and more risk-based contracts—and cuts in state-funded services (mental health, addictions, child welfare, juvenile justice, prison health, senior support services . . .