Douglas County approves $700,000 one-time supplement for Bert Nash’s TRC

Douglas County’s Board of Commissioners on May 20 approved a one-time supplemental payment not to exceed $700,000 to Bert Nash to cover short-term cash needs at the Treatment & Recovery Center (TRC), a crisis stabilization facility the county helped create.

The vote, taken after a multi-hour briefing and public comment, was unanimous. County staff and Bert Nash officials said the money is intended as a one-time solvency bridge while the organizations implement revenue‑cycle fixes, realign program budgets and review consultant recommendations due at the end of May.

County staff opened the discussion by tracing the request’s history: Bert Nash initially sought $1.25 million during the 2026 budget process, reduced that to $1 million in December, and returned to ask for $700,000. Staff described the request as tied to how CCBHC (Certified Community Behavioral Health Clinic) revenues are allocated across Bert Nash programs and to unanticipated shortfalls in fee‑for‑service cash collections.

"In the first 5 months of this year, TRC provided care to 681 distinct individuals in a mental health crisis," said Kirsten Watkins, CEO of Bert Nash, citing utilization data she said supports the center’s community role. Watkins and Bert Nash finance staff described steps already taken — program‑level budgeting, EHR and revenue‑cycle management improvements, and consultant work — and said the smaller, $700,000 ask reflects updated data for 2026.

Bert Nash’s presenter explained the core financial squeeze: fee‑for‑service revenue on paper can be substantially larger than the cash that actually arrives, and current collections were running well below early projections. "Of the almost million we expected, we're getting about a third of that," the presenter said when describing TRC cash receipts; that shortfall, they said, drives the requested supplemental.

Commissioners pressed Bert Nash and county staff on staffing, contract terms, and longer‑term risk. A county staff member confirmed an addendum will be required to modify the TRC operating agreement if the supplemental is approved, and Bert Nash said the organization intends the $700,000 to be one‑time: if the payment is made, the 2027 supplemental request would be withdrawn. Staff also cautioned that state funding and the PPS (prospective payment system) rate are unknown and could change future needs.

Public comment included a cautionary note from a resident who urged the commission to await the final consultant report before disbursing funds. County staff and Bert Nash replied that an interim report had been shared, the final report is due May 30, and invoices will be reimbursed monthly on actuals rather than provided as an unconditional lump sum.

The commission’s motion authorized the county to pay up to $700,000 as a one-time supplemental for TRC solvency, with monthly invoicing and a service‑agreement amendment to document the terms. Commissioners and staff said they expected the consultant’s final recommendations, the refined program budgets and ongoing RCM improvements to reduce the chance of a recurring gap.

What happens next: staff will prepare the contract amendment and invoice process documentation; the consultant’s final report and the 2027 budget cycle will inform longer‑term decisions about TRC funding and the operator contract renewal.