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Mental health provider warns patients of state health department changes
MMental health

Mental health provider warns patients of state health department changes

  • July 26, 2025

JACKSON, Mich. (WILX) – Community mental health organization LifeWays is warning patients about incoming changes to the way that behavioral health care is delivered in Michigan.

In a townhall style forum on Friday, LifeWays leadership shared their concerns about a new Michigan Department of Health and Human Services plan to adjust the system of care for patients using Medicaid.

For decades, mental and behavioral health care has been handled by organizations working at the community level, like LifeWays, which serves people in Jackson and Hillsdale counties.

LifeWays CEO Maribeth Leonard is afraid that’s going to change once the state health department opens up a bidding pool for behavioral health providers to compete for contract to treat Medicaid patients.

“The current structure allows for governance, where the individuals that are served are a part of that board and a part of that decision making about what the needs are at a local level,” Leonard said. “I think losing their voice in that, and they’re the ones impacted by the decisions being made, is very concerning to me.”

Right now, Michigan offers 10 programs for people on Medicaid to get behavioral health services at little or no cost. The state’s program would reduce that number, leaving only three open contracts to cover the entire state.

Jackson resident Henry Banks said it on Leonard’s townhall to get more information about what this change might mean for his loved ones who use behavioral health services in the area. He’s concerned it’s going to make their care less local.

“LifeWays has been here for a quite a while and they’ve built a reputation, a relationship with the community,” he told News 10. “It’s going to affect a lot of people, especially those with severe mental handicaps.”

In a statement, the Michigan Department of Health and Human Services said it’s “changing to a competitive procurement process for the state’s Prepaid Inpatient Health Plan (PIHP) contracts to help ensure Michigan Medicaid beneficiaries have access to behavioral health care services when and where they need them.”

A department official tells News 10 the decision was made after receiving extensive feedback collected from Medicaid patients across the state.

Community Mental Health Association Associate Director Alan Bolter said there are gaps in the current behavioral health care system that need to be filled, but he thinks a better solution to the problem is out there; more importantly, he said, one that does not potentially lead to privatization of care.

“There needs to be more crisis-based services, what people will do in crisis. They want to look at making sure that individual’s rights are protected,” Bolter told News 10. “I don’t necessarily believe they’re being addressed by the proposal the state is pushing for.”

The state health department is expected to release more information about what the new contract procurement process will look like for providers in the coming weeks.

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