Arisa Health to Exit Arkansas State Contract Following $4.4 Million Funding Cut
Access to critical mental health services across 41 Arkansas counties is facing a significant shift. Arisa Health, a provider that has served the state for more than 55 years, announced it will not renew its state contract as a Community Mental Health Center (CMHC) when the current agreement expires on June 30.
The decision comes after the organization determined that the financial requirements to maintain mandated services were no longer sustainable. Specifically, Arisa Health cited a loss of approximately $4.4 million in funding as the primary driver for its exit from the state contract.
- Contract End Date: June 30.
- Funding Gap: Approximately $4.4 million in lost state funding.
- Service Impact: Mobile crisis services, forensic restoration services, and care for incarcerated individuals will cease.
- Remaining Care: 13 outpatient clinics will remain open.
- Reach: Affects 41 counties across north, central, and eastern Arkansas.
The Financial Strain on Community Mental Health
As a designated Community Mental Health Center, Arisa Health has historically provided comprehensive, mandated services to vulnerable populations, including those who are uninsured, underinsured, or enrolled in Medicaid. These services are often provided regardless of a patient’s ability to pay.
According to a press release from the organization, Arisa Health previously absorbed funding gaps to ensure patients maintained access to care. However, the company stated that the level of supplemental support required during the most recent contract cycle grew to a point where it was no longer sustainable.
Which Services are Ending?
The transition away from the CMHC contract means that Arisa Health will stop providing several specialized services. The most immediate losses include:
- Mobile Crisis Services: Rapid-response mental health support for individuals in acute distress.
- Forensic Restoration Services: Legal and clinical services provided to ensure individuals are competent to stand trial.
- Incarcerated Care: Mental health services provided to individuals within the correctional system.
While some locations will close, the provider confirmed that 13 outpatient clinics will stay open to continue serving the community.
Geographic Impact and Affected Populations
The service reductions will impact 41 counties. This includes Craighead, Pulaski, Lonoke, Faulkner, White, Perry, Prairie, Yell, and Pope counties, as well as significant portions of eastern, central, and northern Arkansas.
For many in these regions, the CMHC model is the primary safety net for psychiatric care. The loss of mobile crisis and forensic services creates a potential gap in how the state handles mental health emergencies and legal proceedings involving mentally ill defendants.
A Strategic Shift in Care
Despite the contract exit, Arisa Health leadership maintains that the organization will continue to serve Arkansans through a more focused strategic approach.
“No matter how the landscape shifts, our promise to the citizens of Arkansas does not. Arisa will continue to provide the highest quality of care to those who need it most, and we will only deliver services that reflect our strategic plan, our vision, and our values,” said Laura H. Tyler, LPC, Ph.D., CEO of Arisa Health.
Dr. Tyler emphasized that the decision was not made lightly, noting its impact on clients, staff, and the communities the organization has served for decades. By stepping away from the state contract, the organization aims to protect its mission and team while aligning its services with a sustainable business model.
Frequently Asked Questions
What happens to patients after June 30?
While 13 outpatient clinics will remain open, patients utilizing mobile crisis, forensic, or incarcerated services will lose access to those specific Arisa Health programs. Patients are encouraged to contact their providers to determine how their care plan will be affected.
Why did Arisa Health decide not to bid for a new contract?
The organization cited a $4.4 million funding cut and an unsustainable increase in the amount of supplemental support needed to maintain mandated services for uninsured and Medicaid populations.
Which counties are most affected?
The impact spans 41 counties, with specific mentions including Pulaski, Craighead, Lonoke, Faulkner, White, Perry, Prairie, Yell, and Pope.