The Michigan Department of Health and Human Services is proposing to open oversight of Community Mental Health Agencies to private corporations. Under this plan, outside companies — many based beyond Michigan — could “bid” on the work currently carried out by the state’s ten Regional Entities. These Regional Entities play a critical role: they receive state funding, allocate it to 46 Community Mental Health agencies, and attempt to provide oversight.

Turning this responsibility over to private insurers would shift control of Michigan’s behavioral health dollars from locally accountable boards to corporations driven by profit, not community well-being. Unlike the current system, which is mission-driven and rooted in serving the most vulnerable, privatization would mean:

— Reduced access to care. Vulnerable populations, particularly those with complex needs, could face fewer services, longer wait times, lower quality of care, and higher staff turnover.

— Fragmented services. Cost-cutting would be prioritized over continuity and coordination.

— Higher administrative costs. Regional Entities operate with just 3% overhead. Private companies often take 15% or more for administrative costs — a loss of $300 million to $500 million annually for services statewide.

— Loss of local control. Regional Entities are staffed locally and governed by boards with direct representation from the Community Mental Health agencies’ counties. That accountability and representation would disappear.

— Erosion of transparency. Decisions could move behind closed doors since private insurers are not bound by Michigan’s Open Meetings Act or Freedom of Information Act.

This proposal isn’t about improving care — it’s about replacing local, community-based oversight with national conglomerates. In reality, it is a poorly veiled money grab. Changing insurers in this way does not deliver better care. Mental health services are not a commodity; they are a lifeline.

We urge all citizens to support the protection of Michigan’s public behavioral health system and reject privatization. Our communities deserve care that is compassionate, coordinated, transparent, and accountable — not dictated by profit margins.

Dan McKinney, CEO

Hiawatha Behavioral Health

Manistique

Courtney Grant, Interim CEO

Hiawatha Behavioral Health

St. Ignace