Illi­nois bud­get bat­tle clouds men­tal-healthcare merger

Modern Healthcare - - REGIONAL NEWS - —Adam Ruben­fire

Nashville-based be­hav­ioral healthcare provider Cen­ter­stone has com­pleted its merger with Well­Spring Re­sources, a men­tal-health provider based in Alton, Ill., but lead­ers are con­cerned that the newly com­bined busi­ness will be af­fected by a pro­tracted bud­get bat­tle in the Illi­nois Leg­is­la­ture.

The two closed on a deal Thurs­day af­ter an­nounc­ing in May that they had signed a let­ter of in­tent to merge, in­clud­ing the Prairie Cen­ter, an Ur­bana, Ill.-based sub­stance-abuse treat­ment provider. A deal with Prairie Cen­ter is still pend­ing, ac­cord­ing to Cen­ter­stone CEO David Guth Jr.

Of­fi­cials de­clined to re­lease the value of the deal. But Guth said the merged com­pany could face a fi­nan­cial hit down the line, since Illi­nois law­mak­ers and the gover­nor so far have failed to ap­prove a fis­cal 2016 bud­get. That could threaten state sup­port for men­tal health and sub­stance­abuse treat­ment ser­vices.

“If you don’t have a con­tract in the midst of this, it’s very likely that those ser­vices will not be re­im­bursed,” Guth said. “I hate to cloud ex­cite­ment of our merger, but it’s just the re­al­ity of where the state of Illi­nois’ bud­get is right now.”

Illi­nois Gov. Bruce Rauner has pro­posed an $82 mil­lion cut in men­tal­health ser­vices, ar­gu­ing that the ACA has paved the way for re­duced state fund­ing by ex­pand­ing Med­i­caid and re­quir­ing in­sur­ers to cover men­tal­health ser­vices.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.