Board hears about fears of mental services shakeup
IRON MOUNTAIN — The future of community mental health services in Michigan will be drawing more attention as funding and service delivery models are debated.
At a county board meeting Monday, Commissioner Victoria Jakel urged constituents to contact lawmakers with their concerns. The Michigan Department of Health and Human Services is moving toward a system that may lead to unnecessary privatization, she said.
Jakel, a county representative on the Northpointe Behavioral Healthcare System Board, said CEO Mandy Padget believes the change could make access to care unaffordable for many clients.
“She wants to come and discuss it,” Jakel told the county board.
Michigan’s Medicaid-funded behavioral health system includes 10 regional Prepaid Inpatient Health Plans that manage funding. NorthCare Network is the regional PIHP for the Upper Peninsula.
Northpointe, which serves Dickinson, Iron and Menominee counties, is among the community mental health service programs under NorthCare’s umbrella. There are also a number of substance use disorder service providers across the U.P.
Objections have been raised as MDHHS launches a competitive procurement process for the state’s PIHP contracts. The state plans to issue a request for proposals for PIHPs this summer, with the goal of a service start date of Oct. 1, 2026.
The Michigan Association of Counties says this will potentially shift oversight from locally governed, county-based entities to private for-profit or nonprofit health plans.
“Such a change could undermine service access and quality, erode local governance and reduce transparency,” MAC Executive Director Stephan Currie said in May 15 letter to Gov. Gretchen Whitmer. MAC wants to emphasize other reforms, including bolstering the mental health workforce, increasing funding for services and reducing administrative burdens.
Critics of the current system support such reforms but add it’s a conflict of interest when a single organization acts as both the funder and provider of care. Dan Cherrin, executive director of the independent providers group MI Care Council, says this leads to fragmentation and inefficiencies.
“When the same entity sets the rules, delivers care and controls the money, there’s little incentive for transparency — or accountability,” Cherrin said in an April 21 commentary for Michigan Advance.
Meanwhile, the One Big Beautiful Bill Act before the U.S. Senate that includes Medicaid funding cuts faces opposition from the National Alliance on Mental Illness. NAMI says it will cause millions to lose their health coverage, including many with mental health conditions.
In other action Monday, the county board:
— Reappointed Dr. Sarah Venditti and Jason Asselin, both of Breitung Township, to three-year terms on the Fumee Lake Commission. Julie Wodenka’s resignation from the commission was accepted with regret.
— During citizens’ time, heard Liz Murray of Iron Mountain urge a stronger county effort to work with lawmakers to secure federal aid through budget earmarks. In another matter, Murray said a phone number, and not only an email contact, should be prominently posted on the Dickinson Area Economic Development Alliance website.
— Received a request from Virginia Feleppa of Iron Mountain to hold two regular board meetings per month, as had been the practice for decades. Beginning this month a regular meeting is scheduled only on the second Monday. Meanwhile, the board has tentatively scheduled a special meeting June 16 that includes a closed session to discuss contract negotiations.
— Also heard Feleppa say a forester should be included in any discussions about timber harvests from county property. During a May 27 meeting, the board consented to having Bousley and Chairman Dan Harrington begin an assessment of properties for potential cuttings.
— Learned from Bousley that a lightning strike at Ford Airport damaged lights and other equipment that can be replaced under claims submitted through the Michigan Municipal Risk Management Authority.
— Approved posting and hiring a deputy equalization director, due to the pending retirement of Lori Gregory.