April 2025

CBHC Newsroom: April 2025

Federal Funding & Restructuring: Impacts on Colorado

Recent federal actions have introduced significant uncertainty into Colorado’s behavioral healthcare landscape. First, the Substance Abuse and Mental Health Services Administration (SAMHSA) abruptly clawed back $31.5 million in federal ARPA grants designated for critical mental health and substance use prevention, treatment, and recovery services within the state. In response, Colorado’s Attorney General joined 23 other states and the District of Columbia in filing a lawsuit against the U.S. Department of Health & Human Services (HHS), securing a Temporary Restraining Order (TRO). The TRO remains in effect while the judge prepares to issue a further injunction, anticipated later this month or in early May. Consequently, the Behavioral Health Administration has lifted the stop work orders and resumed payments, although reimbursement will not be provided for services delivered between March 27th and April 4th; invoices for work completed after these dates, however, will be processed.

Adding to this instability, HHS has started reducing its workforce by 10,000 employees, building on prior layoffs and resignations. Furthermore, HHS announced a sweeping consolidation of its divisions, reducing them from 28 to 15. This restructuring includes the dismantling of SAMHSA, which will be absorbed into a new Administration for a Healthy America alongside other agencies. The restructuring of SAMHSA raises concerns about its funding and core functions.

All of this unfolds against a backdrop of ongoing uncertainty regarding potential Medicaid cuts.

Despite this challenging environment, CBHC’s members and their dedicated employees continue to rise to the occasion, delivering vitally important services to their clients, even as planning and budgeting for the future become exceptionally difficult. Now more than ever, we urge you to continue reaching out to Colorado’s congressional delegation to help them understand the potentially devastating impacts of Medicaid and SAMHSA cuts on your communities and local economies. Your voice is crucial in advocating for the vital services you provide. To increase awareness, CBHC and our members launched two coordinated social media campaigns across platforms focused on protecting Medicaid and SAMHSA: #ProtectOurCare and #StandWithSAMHSA. We encourage all members and stakeholders to follow and share these campaigns to amplify our message.

CBHC remains committed to keeping our members informed with timely updates and messaging, facilitating their outreach to Colorado’s congressional delegation, and directly communicating with the delegation on behalf of all members. We will continue to support our members and partners in their advocacy throughout this rapidly evolving situation. CBHC’s statement on the impact of these federal developments is available here and our latest letter to the Colorado congressional delegation can be found here.

Legislative Session: Progress and Priorities

With just four weeks remaining in the session, CBHC’s highest priority bill – SB 290, providing stabilization funding for safety net providers – has now been introduced and is moving quickly through the process. At the same time, another high-priority safety net funding bill, HB 1174, continues its own progress. Here’s a brief snapshot of those bills:

HB25-1174 (Reimbursement Requirements for Health Insurers): This bill caps hospital reimbursements from small group health plans and the state employee health plan and allocates the savings to safety net providers and reducing premiums for state employees. It directs 20% of the resulting savings to comprehensive behavioral health safety net providers. This allocation, secured through CBHC’s advocacy, is significant not only for the vital funding it provides but also for formally establishing behavioral health providers as integral components of the healthcare safety net. It’s currently awaiting a second reading vote in the House.
SB25-290 (Stabilization Payments for Safety Net Providers): This bill establishes a new provider stabilization fund financed through a mix of public and private funds. CBHC has been developing this bill since late last year along with our partners in the Save Our Safety Net Coalition in response to the significant increase in uncompensated care resulting from the end of continuous Medicaid eligibility during the COVID public health emergency. It provides immediate funding (effective in the fiscal year beginning July 1) to a wide array of safety net providers: behavioral health, primary care and rural health clinics. The bill passed unanimously out of the Senate Health Committee April 17 and is continuing through the committee process before its anticipated first floor vote later in April.

In addition, we’re pleased to report that SB25-042 (Behavioral Health Crisis Response Recommendations), HB25-1002 (Medical Necessity Determination Insurance Coverage), and HB25-1070 (Electroconvulsive Treatment for Minors), all bills we supported, have become law.

You can follow all the legislation we’re tracking here.

The Long (Bill) and Short (Bills) of the Budget

The Joint Budget Committee (JBC) has wrapped up the proposed budget package for FY 2025-26. At this writing, a conference committee is meeting to reconcile Senate and House budget amendments; we anticipate the governor will sign the completed budget by the end of this month. To get to a balanced budget this year, JBC members used a combination of one-time revenue enhancements, reallocation of cash fund balances, and technical adjustments to TABOR-related revenue classifications. While effective in balancing the budget in the short term, most of these mechanisms do not constitute ongoing revenue sources or permanent modifications to state expenditures, and therefore, the state’s structural deficit persists.

The FY 2025-26 budget package includes the Long Bill (SB25-206), outlining operating appropriations for state departments, and 63 companion bills that authorize necessary statutory changes. These companion bills, some JBC-sponsored and others introduced separately, are essential for balancing the budget.

Within these budget adjustments, a few orbital bills address behavioral health services, though none have a significant adverse impact:

SB25-236: Consolidation of Crisis Response Services – consolidates the telephone crisis line into the 988 hotline, yielding a small one-time savings of $200,000.
SB25-237: Repeal Behavioral Health Voucher Program – Repeals the behavioral health voucher program for rural and agricultural communities, a small initiative that faced administrative challenges. This repeal reduces the Behavioral Health Administration’s funding by $50,000.
SB25-238: Repeal Mental Health Screening Act – Repeals the mental health screening act for grades 6-12. Created in 2022, this program has been used by only a handful of schools statewide.

Importantly, a budget amendment reinstates $5.6M in general funds for the Primary Care Fund, inadvertently removed during the balancing process, which is crucial for Federally Qualified Health Centers, including some CBHC members.

Solving Challenges in Colorado’s Safety Net: Confronting the Misconceptions

Colorado’s health care safety net is in crisis, with growing numbers of uninsured individuals and unsustainable financial burdens placed on providers. In her latest blog, Kara Johnson-Hufford breaks down common misconceptions that hinder real progress—such as the belief that mental and physical health care are separate, or that a single funding stream can solve systemic issues. She emphasizes the need for a comprehensive, sustainable approach to protect and strengthen our state’s vital safety net system.

Read the full blog to learn more about what’s at stake—and how we can move forward together.

CBHC’s Annual Behavioral Health Conference returns this fall!

Join us September 17-20th, 2025 in Breckenridge, Colorado for three days of connection, learning, and inspiration. This year’s theme, “Rooted in Resilience: Transforming Together,” celebrates the strength, adaptability, and innovation within Colorado’s behavioral health community.

The hotel block is now open—reserve your room early to secure your spot!

Stay tuned for registration details, speaker announcements, and more—or visit our website for the latest updates.

We’re proud to share that Mental Health First Aid Colorado (MHFACO) sponsored a table at this year’s Bridge the Divide Conference, supporting efforts to foster collaboration and understanding across sectors in Colorado’s behavioral health landscape. It was a great opportunity to connect with partners, share resources, and highlight the importance of mental health first aid in bridging gaps in care and communication.

Each May, we come together to raise awareness, reduce stigma, and promote the importance of mental well-being for all. This year, we’re especially highlighting:

Children’s Mental Health Awareness Day – May 9
A day to shine a light on the importance of supporting the mental health of children and youth, and to uplift the voices of families and caregivers.

National Prevention Week – May 11–17
A time to focus on the power of prevention—promoting mental health, preventing substance use, and encouraging healthy choices in our communities.

Join us in spreading awareness, sharing resources, and supporting the mental health of all Coloradans throughout the month.

Solvista Health Services
Solvista is hosting a free community forum on mental health and crisis services at 6:30 p.m. on Tuesday, April 29, at the First Presbyterian Church of Salida (7 Poncha Blvd). The event will feature Julie Anderson, Program Director at Solvista Health, and aims to educate attendees about available resources for families. Serving Lake, Chaffee, Fremont, and Custer counties, Solvista provides a range of behavioral health services. All community members are welcome to attend. For more details, you can read the full article here.

Axis Health System
In her recent Durango Telegraph column, Dr. Stacy Reuille-Dupont, founder of Studio B in Durango, highlights the critical role of Medicaid in providing mental health services across Colorado. She warns that proposed Medicaid funding cuts could severely impact access to care, especially in rural areas, leading to increased emergency room visits and higher overall healthcare costs. Dr. Reuille-Dupont notes that Axis Health System, a key regional provider, has already faced staff layoffs due to funding challenges, reducing access to essential mental and physical health services. She emphasizes that nearly 40% of Colorado Medicaid recipients have psychiatric diagnoses, and accessible mental health care is both beneficial and cost-effective. Maintaining robust Medicaid support is vital for individual well-being and the economic stability of communities statewide. Read the full article here.

Valley-Wide Health Systems and San Luis Valley Behavioral Health Group
The LOR Foundation is organizing the San Luis Valley Resource Fair on Sunday, April 27, at the Ski Hi Complex in Monte Vista. This event aims to connect community members with local nonprofits, offering opportunities to learn about free and low-cost services and to explore volunteer roles. Participating organizations include Hope in the Valley, Valley Wide Health Systems, Rio Grande Hospital, CRHDC, Mountain Valley Medicare, San Luis Valley Behavioral Health Group, and Tu Casa, Inc. The fair will run from 11 a.m. to 2 p.m. For more details, contact Ivette Atencio at 719-850-2312. Read the full article here.

Health Solutions
Health Solutions has taken over Mind Springs Health amid ongoing financial challenges. Mind Springs recently closed two facilities: its withdrawal management center in Glenwood Springs and West Springs Hospital in Grand Junction, the only inpatient psychiatric hospital on Colorado’s Western Slope. The closures were attributed to financial strain, regulatory changes, and Medicaid funding uncertainties. The organization will now operate as Health Solutions West, continuing services without interruption and aiming to retain staff and community engagement. CEO Jason Chippeaux emphasized the commitment to providing stable, compassionate care during this transition. Read the full article here.

San Luis Valley Behavioral Health Group
Proposed federal Medicaid cuts threaten to destabilize health care in Colorado’s San Luis Valley, where nearly 40% of Alamosa County residents rely on the program. San Luis Valley Health, serving 50,000 people across six counties, depends on Medicaid for nearly a third of its $140 million annual budget. Hospital leaders warn that reductions could force service cuts and layoffs, impacting both health care access and the local economy. Residents like Julianna Mascarenas, a mother of six and substance use counselor, express concern over the potential loss of essential coverage. Read the full story here.

SummitStone Health Partners
Steffen Essen, a Loveland resident, became the first client at Larimer County’s Longview Behavioral Health Center in December 2023. Struggling with health issues and addiction, he sought sobriety and, a year later, celebrated his one-year sobriety anniversary by sharing his sobriety coin with the SummitStone Health Partners team. His journey highlights the transformative impact of Longview’s crisis and substance-use services, funded by Larimer County’s behavioral health tax initiative. Read the full story here.

Axis Health System
La Plata County Public Health has opened a new 2,500-square-foot clinic within the Axis Health System building in Mercury Village. The facility features three exam rooms, dedicated vaccine and specimen labs, and energy-efficient vaccine refrigerators. Operating Monday through Thursday, it offers expanded hours for vaccine and sexual health appointments. The clinic’s co-location with Axis Health System enhances access to integrated services, including lab work, pharmacy, oral health, behavioral health, and primary care. Director Tracy Anslemo notes the addition of electronic check-in and text message reminders as part of the department’s modernization efforts. Read the full article here.

Clinica Family Health & Wellness
A recent study warns that proposed federal cuts to Medicaid and SNAP could lead to the loss of 14,000 jobs in Colorado and a nearly $1.6 billion reduction in the state’s GDP by 2026. The report from the Commonwealth Fund and George Washington University highlights the potential economic impact, noting that rural hospitals, which are significant employers in their communities, could face closures due to funding shortfalls. State Treasurer Dave Young emphasized the critical role of Medicaid in providing life-sustaining care, especially for individuals with severe disabilities. He cautioned that such cuts would place immense strain on families and healthcare providers. The proposed budget cuts aim to reduce spending by over $1 trillion, with Medicaid and SNAP being primary targets. Read the full article here.

Diversus Health
Diversus Health has expanded its services by opening a new clinic in Security-Widefield, Colorado. The facility aims to enhance access to behavioral health care for the local community. This expansion reflects Diversus Health’s commitment to providing comprehensive mental health services across the region. For more information, visit their official website.

SummitStone Health Partners
Larimer County is launching the Larimer Integrated Network of Care (LINC), a grant-funded data-sharing initiative designed to expedite mental health crisis response. The project enables authorized professionals—such as law enforcement, emergency responders, and behavioral health providers—to securely share essential information in real time, facilitating quicker connections to support networks like family, case managers, or therapists. By streamlining coordination across agencies, LINC aims to de-escalate crises more effectively and reduce reliance on emergency services. The initiative is supported by the Larimer County Behavioral Health Services Impact Fund grant and involves collaboration between the Larimer County Sheriff’s Office, SummitStone Health Partners, and county departments of Community Justice Alternatives and Human Services. For more details, read the full article here.

Clinica Family Health & Wellness
A recent report from the Boulder County Coroner’s Office reveals a 30% decrease in fentanyl-related deaths, from 38 in 2023 to 27 in 2024. This decline reflects a coordinated community response, including increased naloxone distribution, public education on fentanyl risks, and enhanced law enforcement collaboration. The Boulder County Fentanyl Prevention Group, formed in 2022, plays a pivotal role in these efforts, comprising local agencies such as Boulder County Public Health, law enforcement, and educational institutions. Despite this progress, public health officials emphasize the need for continued vigilance and collaboration to address the evolving challenges of substance use and prevent future overdose deaths. Read the full article here.

Servicios de la Raza
State and local leaders met at the Regional Talent Summit in Pueblo on April 2, 2025, to develop workforce and broadband plans across Southern Colorado’s 13 counties, unveiling grants such as $1.4 million for CSU‑Pueblo nursing education, $3.5 million for tech job creation, and $900,000 from Servicios de la Raza to address regional talent gaps. Read the full article here.

MindSprings Health (now Health Solutions West)
Dr. Jayasree Nandagopal, MD, DFAACAP, FAPA, a child and adolescent psychiatrist at Mind Springs Health, has been honored with inclusion in Marquis Who’s Who for her two decades of leadership in clinical care, research, and medical education—recognizing her board certifications, Distinguished Fellow award from the AACAP, and pioneering use of telemedicine to expand access to mental health services in remote and underserved Colorado communities. Read the full press release here.