Finance committee flags $9M Ottawa County Medicaid deficit, highlights $2.5M SAMHSA grant for crisis diversion

The finance committee told the board the authority faces a projected $9 million Medicaid deficit for Ottawa County and nearly $16 million across the Lakeshore region, driven by utilization and revenue-estimate differences. Committee members said some of the reported increase stemmed from a reporting omission for substance-abuse Medicaid expenditures; after correcting reporting and using recent monthly trends, the local worst-case estimate could fall to about $7 million, the director said.

At the same meeting, the committee reported receipt of a $2,500,000 SAMHSA behavioral health early diversion grant over five years that will fund five new staff positions and a walk-in center to address emergent needs. Committee members urged preparing a deficit-reduction plan and using the director's upcoming needs analysis to inform regional advocacy and actuarial work the LRE plans to commission.