The Wasco County Board of Commissioners unanimously approved a letter on Jan. 7 urging PacificSource Coordinated Care Organization to reverse a roughly 30% reduction in behavioral health funding for local services, according to reporting by Columbia Gorge News.
Al Barton, executive director of Mid-Columbia Center for Living (MCCFL), told commissioners that the organization’s negotiations with PacificSource would render at least three intensive programs unsustainable, despite their legal requirement. These include clinical teams that function as standing emergency services for severe mental health crises. Barton compared the funding model to fire departments: “We don’t pay the fire station by how many fires they put out.” He warned that if MCCFL’s programs shrink or disappear, costs would shift to jails, emergency rooms, and law enforcement instead.
PacificSource’s Financial Struggles
PacificSource, a Springfield-based nonprofit, has faced mounting financial pressures. The insurer pulled out of Washington State in 2024 and laid off 300 employees last October, representing a sixth of its workforce. According to the Lund Report, PacificSource’s Coordinated Care Organization covers 356,000 Oregonians through the Oregon Health Plan, coordinating physical health, behavioral health, and dental care across the state.
The contract timeline presents urgency: the existing agreement could end March 21, according to Barton. He told commissioners that PacificSource had sent a message indicating there would be no counteroffer, stating “This is the deal.” When asked if another provider could immediately step in, Barton said no, explaining: “It’s taken us years to build the infrastructure and recruitment and build the staffing.”
County’s Authority and Recommendations
The commissioners’ letter invoked Wasco County’s status as the Local Mental Health Authority, responsible for coordinating with PacificSource to ensure local services are developed and implemented. The letter specifically expressed concern that people could enter the justice system “without true criminal conduct” if programs such as Assertive Community Treatment for adults and Youth Wraparound are not properly funded. Barton urged two escalations: aligning with other counties contracting with PacificSource and pressing the Oregon Health Authority for intervention. Commissioner Phil Brady expressed skepticism about the letter’s effectiveness, while supporting its approval, calling it “some other piece of paper on his desk.”
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.columbiagorgenews.com/news/pacificsource-to-cut-behavioral-health-funding-by-30/article_94772d1b-cb07-4588-96a0-5b34913be5aa.html