More Good News for D&A Funding

January 12, 2004

PCPA and other members of the D&A Coalition met on January 8 with Deputy Secretary Joan Erney, Office of Mental Health and Substance Abuse Services (OMHSAS). Ms. Erney provided an update on the current budget situation. There is some more good news to report.

  1. The attempt to move HealthChoices clients to Fee-for-Service will definitely not occur this year. However, there is considerable work that must be done to assure that the move does not occur next year. PCPA will alert members when advocacy efforts are needed.
  2. The InterGovernmental Transfer (IGT) funding is being restored at 100%. In addition, IGT will be increased by $4.7 million to fill the 10% gap in the BHSI funding that only received 90% in the approved budget. Important note: there is much more flexibility with the use of IGT than there is for BHSI or Act 152. For example, IGT allows for program funding.
  3. OMHSAS strongly supports the use of restoration funding to cover some of the costs that were not covered since July 1. Appropriate documentation will be important. This is an excellent opportunity for providers to recoup some of the losses that were incurred. In addition, OMHSAS supports the counties backfilling rates that were reduced.
  4. OMHSAS has also stated their support for counties working together to meet the statewide needs that exist. Due to the late arrival of this funding it is imperative that all stakeholders work together to get the funding to areas that demonstrate need. Again, appropriate documentation/utilization data will be crucial.
  5. Work continues on the removal of the lag time in HealthChoices for drug and alcohol services. OMHSAS is hopeful that it will be activated soon.
  6. The coalition will be asking OMHSAS and the Bureau of Drug and Alcohol Programs to increase flexibility of BHSI by changing the eligibility criteria. There is also a strong push to encourage the appropriate use of the Pennsylvania Client Placement Criteria (PCPC) especially as it relates to length of stay criteria.

In an effort to make changes for improvement, the coalition discussed the need to study how the system reacted during the budget crisis. However, Ms. Erney emphasized the need for all stakeholders to work together to help stabilize the system. OMHSAS and coalition members stated the need for significant system rebuilding; however, stabilization rules the day.

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