Springdale-based behavioral health provider Arisa Health said Friday (May 8) that it will close some of its Arkansas locations and no longer be the state-contracted provider for mobile crisis, forensic restoration services, and services for those who are incarcerated.
The existing contracts end on June 30, and the nonprofit declined to submit a bid to renew them.
Tim Hudson, chief philanthropy and marketing officer for Arisa Health, said it will close 26 outpatient clinics on June 30 when the contracts end. As of July 7, about 65 employee positions will be eliminated. According to a news release, 13 Arisa Health outpatient clinics, which currently handle more than 70% of its clients, will remain open and serve as service hubs for the 41 Arkansas counties that it serves.
The release shows that Arisa Health is the designated Community Mental Health Center (CMHC) in 41 Arkansas counties and has relied on state and federal money to provide mandated, comprehensive services to uninsured, underinsured, and Medicaid recipients, regardless of their ability to pay.
The nonprofit has absorbed funding gaps to maintain access to care, but the level of supplemental support required in the most recent contract cycle “has grown exponentially and is no longer sustainable.”
The request for bids for the new CMHC contract included an annual reduction of $4.4 million in total funding and “did not address the core issues raised,” the release shows. “These issues include insufficient rates, lack of code parity for CMHCs, adjustments for inflation and population growth and the ongoing workforce shortage driven by wage inflation. It is simply not possible to recruit and retain a behavioral health workforce without allowing for even a modest increase in compensation in response to rising inflation…”
After more than 55 years serving Arkansas communities as part of the statewide network of CMHCs, Arisa Health has decided not to submit a bid for the new CMHC contract. While the CMHC services have been a core part of Arisa’s identity, they represent only a portion of the organization’s comprehensive behavioral health services, which Arisa Health will continue to serve and grow through additional state programs, as well as care for Medicaid clients, including PASSE members, and other vulnerable populations.”
According to the release, “This decision was not made lightly. It affects clients, Arisa staff, and communities served for decades.” The nonprofit made “strong efforts to communicate to state officials the funding required to continue operating quality programs that meet state-mandated deliverables…”
Arisa Health’s 1,100 employees serve nearly 65,000 Arkansans, providing licensed mental health, medical, certified substance abuse, and paraprofessional services in 41 Arkansas counties. The nonprofit has administrative, paraprofessional, licensed mental health, and certified substance abuse staff, peer specialists, physicians/prescribers, and nursing staff.
Arisa Health will contact clients whose services are tied to CMHC funding to inform them of the changes. Once new CMHC providers are selected for each region, Arisa Health will work with them to support a smooth transition and help clients maintain access to care.
“No matter how the landscape shifts, our promise to the citizens of Arkansas does not,” Arisa Health CEO Laura Tyler said. “Arisa will continue to provide the highest quality of care to those who need it most, and we will only deliver services that reflect our strategic plan, our vision and our values. This moment requires clarity and conviction, and we are choosing a path forward that protects our mission, our team, our communities and the clients we serve.”
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