The state's Adult Mental Health Division, which serves about 16,000 patients each year, is cutting reimbursements to contractors to try to make up a projected shortfall of about $24 million in the current fiscal year.

The cuts are expected to make up only about half the shortfall, meaning the Department of Health plans to continue searching for ways to trim spending.

State Health Director Chiyome Fukino said she is hopeful there will not be a decline in services and that the department will monitor mental health care.

“;We believe we can continue to deliver even with fewer dollars,”; Fukino said.

Fukino outlined the new measures yesterday to about 50 service provider representatives at a meeting at the Queen's Medical Center.

“;We're going to work with our providers, we're going to look at all of our service arrays and we're going evaluate what works and what doesn't work,”; she said.

The new restrictions include a cap on reimbursements to mental health service providers for case management services that can be billed monthly. Contractors would be limited to billing just 31/2 hours of case management per patient per month, compared with three hours per day.

  “;That was based on looking at the utilization of all of the providers and looking at outcomes,”; Fukino said. “;We found that still can be a good starting place.”;

She said service providers who are unable to work within that cap can appeal, and those would be decided on a case-by-case basis.

State Health Department Orders Cutbacks

 

The department provides help in the community and say that the cutbacks can be made without hurting the patients.

 

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“;We're not going to just say you can just bill as much as you want,”; she said.

The division's other main change will be to move patients with private insurance to their own health plans and off of state-provided services.

The two moves, which are set to start Jan. 1, are expected to save $10.2 million and $2.4 million, respectively, in the current fiscal year.

Fukino added her department is willing to discuss all potential solutions with service providers.

“;This is not something that is engraved in stone,”; Fukino told service providers. “;It is a reasonable action we believe the department must take.

“;We are counting on your cooperation.”;

Emmanuel Kintu, a mental health service provider at Kalihi Palama Health Center, was encouraged by the meeting with Fukino.

“;It tells us that we do have to do some belt tightening,”; he said. “;It tells us that we may have an ear open as to suggestions that are going to come from the community and that we have to be open about the reality that we're going to have reductions in funding and just try to work together as a community to find appropriate solutions.”;

More budget cuts are possible.

Gov. Linda Lingle has asked all state agencies to propose departmental cuts of up to 20 percent as her administration crafts the biennium budget that she will present to the Legislature next month.

The state is facing a budget shortfall of more than $1 billion.

“;With the size of the shortfall we have, we're having to re-examine everything that we do,”; Lingle said earlier this week. “;That means across every department and every program, but there have been no final decisions made.”;