County’s mental health consortium gamble pays off

Pennsylvania

The [Wilkes-Barre] Times-Leader

In 2006, four adjoining Pennsylvania counties decided to share management of mental health and addiction treatment monies for low-income residents on Medical Assistance (a fixed allocation of state and federal funding). Together, they were able to spend the full $100 million more efficiently, and have so far generated a $4.5 million savings which has been dedicated to new programming. (If, instead, expenses had exceeded the pooled amount, taxpayers in the participating counties would have had to pay for the difference.) Some savings were made through bulk purchasing power, and others by addressing health concerns before they escalated, said James Gallagher, chief executive officer of the Northeast Behavioral Health Care Consortium, the multi-county nonprofit created to manage the funding. For instance, clinical teams were assigned to schools to help children with mental health and substance abuse problems, reducing referrals to more expensive facilities. New programs funded by the surplus include community-based teams of medical professionals and support workers to help high-need clients avoid hospitalization, and support services allowing more clients to live independently.

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