Orange County faces funding cuts for mental health services

Orange County Supervisors are confronting the impact of reduced funding for mental health services due to changes in state policy. Following the approval of Proposition 1 last March, the county must now reallocate mental health funds towards homeless services and housing, resulting in a projected loss of over $100 million from the Mental Health Services Act this year compared to earlier estimates from three years ago.

This funding shortage coincides with the upcoming budget proposal set to be released on May 21, which officials have warned will reflect the financial strain from both federal and state cuts, as well as liabilities incurred from the Airport Fire.

A recent meeting highlighted the funding debate when county staff proposed terminating their longstanding contract with Didi Hirsch Mental Health Services, which has provided suicide prevention and counseling programs for over 15 years. The organization currently receives more than $3 million annually to operate a suicide prevention hotline and support services for individuals and families affected by suicide. However, they are unable to secure reimbursement through Medi-Cal, California’s Medicaid program.

In response, county staff suggested shifting these support services to the OC Asian and Pacific Islander Community Alliance (OCAPICA), which is able to bill Medi-Cal for services. This new arrangement would cost $1.6 million per year, leaving just over $500,000 for Didi Hirsch to maintain the suicide hotline.

County Behavioral Health Director Ian Kemmer noted that OCAPICA was chosen due to their capacity to receive immediate reimbursement, alleviating the financial burden on the county. Supervisor Don Wagner acknowledged the financial realities of the situation, stating, “At the end of the day, we’ve got to serve the people.”

Supervisor Vicente Sarmiento pointed out that the funding constraints are a direct consequence of Proposition 1 and emphasized the need for providers to be certified for Medi-Cal reimbursement to ensure sustainability. He remarked, “We have this dilemma where we have two providers that are equally strong, and one is able to immediately bill Medi-Cal for these services.”

Didi Hirsch is currently pursuing Medi-Cal certification in Orange County, but it may take several months before they receive approval. Supervisors did not finalize the contract decision during the meeting, instead requesting a proposal that would allow both organizations to share funding.

Supervisor Katrina Foley called for clearer communication from county staff regarding the necessity of Medi-Cal certification for contractors. She expressed concern about the lack of detailed budget information available to the Supervisors, stating, “We don’t have like the line item, budget, revenue, expected estimates, etc. We don’t have that as part of our review here today.”

As Orange County navigates these funding challenges, the future of mental health services remains uncertain, with officials working to balance fiscal responsibility and the critical need for accessible mental health care in the community.