Service provider voices concerns after notified ODMHSAS is not renewing funding

NORMAN, Okla. (KFOR) - The Virtue Center in Norman celebrated 53 years of serving the community this week.

They said that after receiving a notice that some of their contracts with the Oklahoma Department of Mental Health and Substance Abuse Services will not be renewed. They said they were worry about the looming impact.

More than 300 contracts with the Oklahoma Department of Mental Health and Substance Abuse Services are on the chopping block.

The agency said it was working to "balance its budget." They are facing a $30 million deficit, the result of overspending and mismanagement, according to an audit report.

Oklahoma service providers who have contracts with the agency received a notice stating the funding will be reduced or not renewed.

Now, programs Oklahomans rely on are bracing for impact.

"It's great to clean house, but what's the vision? What are we going to do in the meantime to help people? And long term, what is the vision?" said Teresa Collado, Executive Director for The Virtue Center.

The Virtue Center is one of more than 300 contracts with the state agency that now face non-renewal. Collado says they are losing vital funding for programs that their patients use daily.

"The state of Oklahoma, I would say, because it's been underfunded, treatment has been underfunded for so many years. Now, it's like the perfect storm, with everything that's going on, it's going to impact our ability to make it more accessible for people during a time when people really need a lot of help," said Collado.

The Virtue Center in Norman provides a variety of services for mental health and addiction needs.

"This morning we had a young couple with a beautiful little girl that they had lost custody of because of their addiction and mental health issues," said Collado.

Collado said that through The Virtue Center, the couple was able to get the help they needed to regain custody of their daughter.

"That's what recovery is about, getting people back on their feet, bringing families together, helping people to be great employees and contributing to our great state of Oklahoma," said Collado.

She said success stories like these could shrink as looming state cuts, on top of federal cuts, apply pressure.

"Right now, it's business as usual," said Collado. "But as we find out more about the Medicaid cuts that are coming down the pike, we will have to say no to people coming for help or refer them to other places. But then, where do we refer them if there's not funding available for agencies?"

ODMHSAS did not comment any further other than this is the first step in their process to get to a balanced budget.

In a recent press release, the Interim Commissioner, Greg Slavonic, reflected on the first 90 days.

The agency has long provided more services than its budget could support. Our hearts were bigger than our wallet. Now, we are aligning spending with available resources while maintaining essential services.

Interim Commissioner, Greg Slavonic

The press release goes on to discuss the line-by-line review process that led to over 300 contracts not being renewed.

In his first 90 days, Slavonic directed an intensive line-by-line review process of nearly 800 contracts. Some contract line items were reduced or not renewed because they were non-essential, redundant or the funding stream had expired, but patient access to core clinical services has not been affected. The agency also eliminated 23 executive positions, generating $3.5 million in annual savings. Vendors were given a 90-day extension before final decisions were made.  

ODMHSAS

Slavonic said in the press release that his team was implementing recommendations from Cindy Byrd and the LOFT report. Adding, they were "making good progress."

In the press release, Cindy Byrd says she is pleased to see the agency cooperating.

State agencies can only be effective if they are financially sound. It is encouraging to see these reforms because it means ODMHSAS can now put greater focus on providing services to Oklahomans. I will always applaud any state agency that takes our audit reports seriously, implements our recommendations, and protects the taxpayers.

Cindy Bird, State Auditor and Inspector

The agency said it has hired a Chief Financial Officer.