Governor Tim Pawlenty today announced $109 million in new and redirected government investments to transform the way the state provides mental health services and improve mental health care and treatment for children and adults.

"Our current mental health care system needs improvement and this initiative will deliver significant advancements in access, quality and accountability," Governor Pawlenty said.  "Nearly all of us know someone touched by the challenges of mental illness.  Fortunately, the negative stigma surrounding mental illness is breaking down as people recognize it as a health care issue that can be successfully treated.

"Untreated mental illness creates significant and unnecessary human and economic costs, and tackling this challenge is a key part of health care reform," Governor Pawlenty said. 

Currently, more than 25 percent of caregivers in the Minnesota Family Investment Program, our state's welfare system, received a severe mental health diagnosis within the past three years, while 30 percent of children in Minnesota's child welfare system suffer from serious mental health disorders.  Significant transformation of our state's mental health system is needed to create a new fiscal framework that ensures the most effective care is being delivered in a timely and efficient manner.  It is also necessary to provide innovative workforce solutions to ensure an adequate supply of mental health professionals, as well as coordinate caregiving to improve health and social outcomes for Minnesotans. 

Key elements of Governor Pawlenty's mental health care initiative include:
- Adopting a consistent mental health benefit set with proven treatment across all publicly funded health care programs;
- Requiring that mental health care be integrated with other health care services and effectively coordinated with social services and education;
- Simplifying access to treatment, establishing clear lines of accountability, and evaluating performance based on client outcomes; and
- Targeting significant investments in mental health infrastructure, including investing in statewide crisis services, reducing mental health clinician shortages that prevent access to timely treatment, increasing best practices, improving services for specialty populations, and developing performance-based systems of accountability that focus on client outcomes.      

The transformation of mental health services builds on the recommendations of the Minnesota Mental Health Action Group, an unprecedented public-private effort to improve health care in the state.  The proposal addresses issues in the current public health care system, such as the current lack of incentives for early identification and intervention, as well as many opportunities for cost shifting and cost avoidance. In the past, consumers have experienced a fragmented care system with varying levels of access and care coordination.  Health care consumers with mental illness were often forced to become very sick before they received appropriate services.

The proposal is funded with $49.5 million from the Health Care Access Fund and $59 million in redirected investments. 

Adopting a consistent mental health benefit set across DHS programs
($26.8 million; offset by $22.8 million redirected adult mental health grant funds)
The new initiative will create a consistent mental health benefit package, which includes proven treatments.  Participants in Minnesota's publicly funded health care programs (GAMC, MinnesotaCare, PMAP) will have access to an effective mental health benefit set modeled after what currently exists for Medical Assistance, fee-for-service recipients, providing significant progress toward reaching the benefit set recommended by the Minnesota Mental Health Action Group. 

Integrating care systems
($32.5 million; offset by $28.4 million redirected state grant funds)
By creating an integrated payment and service model that improves the coordination between mental health care, physical health care, and social services, the proposal establishes clear accountability for performance based on client outcomes.  It will also help alleviate the potential loss of federal funds.

Shore up children's school-based mental services infrastructure
($17.4 million)
Due to federal regulation changes, a primary funding sources for these services is being diminished.  This investment would pay for these services for uninsured and under-insured children. 

Develop statewide mental health crisis intervention and stabilization infrastructure as a first-line safety net for children and adults
($13.5 million offset by $8.2 million redirected from increase in county share for commitments to state operated hospitals)
Mental health crisis services are provided 24/7/365 in a local community, and are the first line of service for persons who are experiencing a mental health crisis.  This investment would provide critical services in the community to people who would otherwise need hospital level of care.  It helps alleviate the existing shortage of psychiatric bed capacity.

Monitor and track availability of mental health services
($253,000)
A statewide, Web-based system will be developed to monitor and track the availability of mental health services, focusing first on psychiatric acute care capacity. 

Develop and support evidence-based practices
($5.7 million)
Investments in statewide infrastructure and training will focus on the transformation of local treatment capacity to best practices.  The goal is to provide quality care as measured by standardized assessment and performance outcomes, so that the very best type of treatment for each case is ensured. 

Address workforce shortages, including psychiatrists and other critical mental health professionals
($7.5 million)
Today, access to critical mental health services is significantly limited by shortages of qualified professionals.  These funds will create economic incentives supporting recruitment and retention of these professional by providing enhanced reimbursement rates for providers serving a high proportion of public clients.

Develop capacity to address the mental health care needs of specialty populations
($5 million)
State and county government will need to continue to support access to treatment for some serious mental health disorders that are not common enough to be sufficiently supported by other sources.  Examples include eating disorders, co-occurring disorders, culturally specific treatment needs and attachment disorders.  In some cases, these treatment needs are purchased outside of Minnesota.
 
Create a system for measuring mental health service outcomes
($323,000)
A Web-based statewide outcomes evaluation system for mental health services will be designed and implemented to monitor treatment outcomes and improve care.