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Funding Crisis Forces Major Rate Increases for Mental Health Services

August 16, 2024 | Cumberland County, Pennsylvania


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Funding Crisis Forces Major Rate Increases for Mental Health Services
During a recent government meeting, officials discussed significant proposed rate increases for various healthcare services in Lancaster County, driven primarily by rising salary, benefit, and operational costs. Providers are requesting increases ranging from 3% to 21% across multiple locations, with specific requests including a 9% increase from one provider and a 20% increase from another. The increases reflect the ongoing financial pressures faced by these facilities, which are essential for drug and alcohol treatment and withdrawal management services.

The meeting also covered nine contracts related to mental health and intellectual disability services, with adjustments reflecting both increases and decreases in funding based on service demands. Notably, the United Cerebral Palsy contract saw a substantial increase of $193,449 due to additional services, while the Arc of Cumberland and Perry County experienced a decrease of $83,082 based on authorized services.

An important proposal was introduced regarding a grant application to the Office of Mental Health and Substance Use Services. This proposal aims to secure funding without reducing bed capacity at Danville State Hospital, despite the state's historical emphasis on bed reduction in similar grants. The request, which could add approximately $480,000 to the county's annual operating budget, is justified by the growing population and demand for services in Cumberland County.

Officials emphasized the need for cost-of-living adjustments in funding, as many programs have not seen increases since their inception, leading to challenges in maintaining service levels amid rising costs. The commissioners expressed support for the grant proposal, highlighting the importance of adapting funding mechanisms to meet the community's evolving needs.

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