TRAVERSE CITY — The state has abandoned plans to potentially privatize Michigan’s mental health system, a possibility that drew mixed reactions from patients and Northern Michigan officials.
Some experts say they were concerned the proposal would cause providers to focus more on profitability — and some mental health patients say they’re willing to entertain the idea.
“I personally think we don’t need to throw out the system,” said Brian Babbit, CEO of North Country Community Mental Health. “I think there’s room for improvement in the system.”
The management of Michigan’s behavioral health system costs close to 5 billion dollars every year. That’s about 15 percent of MDHHS’s entire budget.
Kate Dahlstrom, president of Grand Traverse’s National Alliance on Mental Illness, says that the drop in available inpatient beds has made it more difficult to receive care.
“In the ‘60s, we had almost 22,000 in Michigan, and now the state finances, almost 700 — that is, that’s basically malpractice, in my mind,” she said. “They’re relying on general hospitals to have psychiatric units”
A spokesperson for the department says in a statement that MDHHS rescinded the plan to re-evaluate their approach.
“Michigan’s behavioral health delivery framework has remained largely unchanged since the late 1990s, despite significant changes in health care delivery, financing, integration expectations and federal oversight,” she said. “This requires the department to assess whether the current structure is positioned to meet today’s demands and future needs.”
MDHHS is continuing to look forward — but Northern Michigan providers say they’re not convinced the state has a strategy.
“There’s been no indication that I’m aware of what the department’s plans are,” Babbit said. “But I do think that those would be coming forward”
Mental health advocates argue that Michigan’s state-contracted system has generally run more efficiently than private facilities.
“I think the administrative cost of the public system is considerably less than what you typically see in the managed care arena,” Babbit said. “So it would have taken a fair amount of money right off the top that would no longer be available for services.”
The proposal also raised concerns that private operators could become more focused on profit.
But Norma Eby, a former patient of Traverse City State Hospital, says she supports more public involvement in mental healthcare.
Eby was institutionalized from 1972 to 73 in the children’s and adult wings. She associates a drop in state hospital access with an increase in untreated mental illness.
“I basically am an advocate for starting new state hospitals,” she said. “I was disappointed to see that the decision by the state to withdraw their proposal.”