In this week’s newsletter, you will find updates on how PIHPs are reshaping Michigan’s behavioral health system despite the reduction from 10 PIHPs to three, with up to two in each region. You will also learn about a transition within the Community Mental Health Association, about the state’s historic investment in opioid response and recovery, and key legislative and policy developments shaping the future of care delivery across Michigan.
Note, we did not share a newsletter last week and so we are combining news from the past two weeks. Pull Up Your Chair & Let’s Start the Conversation.
The Redesign
The Quiet Shift Undermining Michigan’s Behavioral Health System
Providers report new conflicts as PIHPs move to absorb services and restrict referrals
Some PIHPs are beginning to seize provider services and quietly cut off referrals—shifting from managing care to delivering it themselves and hedging their bets as both payer and provider. (See Oakland Community Health Network says it will assume county crisis services as state procurement looms). When the same entity that funds services also competes to provide them, it creates conflicts of interest that undermine trust, reduce access, and destabilize the very network built to help people in crisis. For providers who have delivered these services for decades, it’s deeply concerning to see PIHPs expanding control rather than strengthening partnerships.
Providers across Michigan are already feeling the impact: fewer referrals, delayed authorizations, and reduced rates that force long-standing programs to close. (See Tormented Minds, Broken System: Gaps in mental health care before violence on WOOD TV). These decisions are being made without transparency or public input, often under the banner of “integration” or “efficiency.” The result is predictable—fragmented care, weakened community partnerships, and growing uncertainty about the future of behavioral health in Michigan.
If your organization is experiencing reduced referrals or has concerns about your PIHP absorbing or restricting services, please contact us to share what you’re seeing. Your experiences are vital as we work together to protect accountability, transparency, and conflict-free care across the system.
Dive Deeper
Battle Creek’s SHARE Center faces uncertain future as mental health funding shrinks – Second Wave, Second Wave
Northern Michigan mental health agencies sue state over new plan, Manistee News Advocate
Leadership
COMMUNITY MENTAL HEALTH ASSOCIATION ANNOUNCES NEW CHIEF EXECUTIVE OFFICER
The Community Mental Health Association of Michigan (CMHA) Board of Directors announced last week, the appointment of Alan Bolter as the organization’s incoming Chief Executive Officer, effective November 1, 2025. Bolter will succeed Robert Sheehan, who has successfully led CMHA for the past decade. Sheehan will continue serving as CEO through October 31, 2026, to ensure a seamless transition in leadership.
“We feel fortunate to have selected Alan as the next CEO of CMHA, given his caliber and proven track record. Alan has spent the last 25 years dedicated to public policy and governmental affairs—14 of those years advocating on behalf of CMHA. We are confident he will continue to strengthen our mission of informing, educating, and advocating for mental health across Michigan.”
A distinguished and highly respected lobbyist, Bolter joined the Community Mental Health Association of Michigan in 2009 and has since been recognized multiple times among Michigan’s most effective association lobbyists by the MIRS/EPIC-MRA Michigan Insider’s Survey in 2019, 2021, 2023, and again in 2025. His work has been instrumental in advancing the expansion of CCBHC sites statewide, securing increased wages for direct care workers, and championing key state appropriations that have expanded access to essential behavioral health services throughout Michigan.
Prior to joining CMHA, Bolter spent 12 years in Michigan state government, including roles in the Lieutenant Governor’s office and as Chief of Staff in both chambers of the Legislature.
“Stepping into this new role is a tremendous honor. I deeply believe in the mission of the Community Mental Health Association and feel privileged to work alongside so many dedicated professionals who share our commitment to ensuring consistent, reliable, and affordable healthcare for all Michiganders.”
The Community Mental Health Association of Michigan (CMHA) is a trade association representing Michigan’s public mental health system, which delivers mental health, substance use disorder, and developmental disability services in every community across the state. Source CMHAM.
SUD
Michigan makes historic investment in opioid and substance use
response with more than $131 million included in FY2026 budget
Will fund prevention, harm reduction, treatment and recovery services which have
contributed to a nearly 40% decrease in overdose deaths since 2021
To help save lives and reduce overdose deaths, the recently passed FY2026 state budget includes more than $131 million from the Opioid Healing and Recovery Fund to support substance use disorder prevention, harm reduction, treatment and recovery services. An overview of these investments and how they align with the strategy developed by the Michigan Department of Health and Human Services (MDHHS) in partnership with the Michigan Opioids Task Force was provided during yesterday’s task force meeting.
“We greatly appreciate Governor Whitmer and legislators who were critical to making these investments a reality. We will use these funds to continue investing in programs that further our efforts to save lives by decreasing substance use disorders, expanding treatment options and improving recovery success.”
“Michigan is a leader in addressing opioid addiction, ranking in the top five states in the country for greatest reduction in overdose deaths. Those are not just statistics, they are our neighbors, our family members and our friends whose lives have been saved by the programs and resources our state is providing through these investments.”
“The support of Governor Whitmer and our legislative partners is vital to addressing substance use disorder in Michigan. Their support will allow community organizations, treatment providers and MDHHS to continue building on the successes and improvements Michigan has made in addressing the opioid epidemic.”
This budget will not only continue to save lives through expanding harm reduction and treatment access but will also support efforts to prevent substance use in the first place and provide essential resources for people in recovery. These investments include:
$13.75 million in primary prevention and public education efforts to delay the first use of drug use and increase community awareness and knowledge.
$25.5 million to support harm reduction agencies, diversion, law enforcement training and naloxone distribution. All of which have been shown to save lives and reduce the strain overdoses can have on hospital and health care systems.
$28 million to increase access to quality treatment throughout Michigan.
$37.5 million to expand the availability of recovery housing and recovery support services offered by community organizations.
$27 million in other targeted investments to support best practices, including services offered by peer recovery workers and mobile services, and to ensure good government, fiscal responsibility and data-driven decision making.
More details on these investments, including timelines and how providers can access these funds, will be provided as information becomes available.
Michigan is slated to receive more than $1.8 billion from national opioid settlements by 2040, with half being distributed to the State of Michigan Opioid Healing and Recovery Fund and the other half being distributed directly to county, city and township governments across the state. For more information about SUD resources, visit Michigan.gov/SUD.
Additional information regarding proposed programming under Michigan’s Opioid Healing and Recovery Fund is provided on the opioids settlement website.
Legislation to Watch
Medical Policy Changes - Public Comment Review of Proposed Medicaid Policy (Project #2545-BH) The proposed policy discusses Medicaid Health Plan (MHP) Provider Mental Health Assessment Requirements for Comprehensive Health Care Program (CHCP) Enrollees – as part of the MDHHS Mental Health Framework effort. Comments on this proposed policy are due November 21, 2025. Comments may be forwarded to Amy Kanouse at [email protected]. See proposed policy here.
HB 4667 regarding AI use in healthcare proposes a flat 8 year imprisonment for a felony conviction relating to what could be construed as errors or mistakes when using AI in practice which could also be expanded to billing errors, over/under. Needs review, suggested edits and consult.
State Updates
Press Release: New risk assessment tool at MDHHS state psychiatric hospitals reduces incidents and injuries to patients and staff. Source MDHHS
Press Release: Webber tells committee he was misled, stonewalled by MDHHS following auditor's report on agency's failings
CCBHC
Strengthening Rural Maternal Mental Health - National Governors Association, National Governor’s Association
Other news
Administration Must Restore Some Mental Health Grants, Court Says, New York Times
From Detroit
Detroit needs mental health solutions now, Detroit News
From Grand Rapids
Mental health equity: Changes, challenges, and paving a path forward – Rapid Growth, Rapid Growth
From Lansing
‘Capitol Day’ highlights mental health support for new mothers, infants, WILX
From Other States
Behavioral health leaders reflect on Kansas' statewide rollout of new mental health care model
Events
*Note: Dr. Bagdasarian is the Chief Medical Executive for the State of Michigan
Mentoring
The Michigan Health Council Behavioral Health Career Day won’t be until this spring, but they need your help. This virtual event will connect high school students from across Michigan with professionals, educators, and organizations making a difference in the behavioral health field. They are seeking dynamic presenters and panelists who can help students: Learn about meaningful careers in behavioral health; Explore education and training opportunities; Discover local programs, mentorship, and job pathways; Experience engaging, hands-on, or interactive sessions. If your organization, school, or team is interested in sharing your expertise, we invite you to submit a presentation proposal. Sessions can include career spotlights, panels, live demonstrations, or student-focused workshops. If you have any questions, please reach out to me at Aleysha Czartoszewski [email protected] or contact MHC.
Learn more here: www.mhc.org/bhspeakers, Deadline: November 30, 2025
If you are a nonprofit behavioral health provider in Michigan, and not a member of the MI Care Council, MI Behavioral Health & Wellness Collaborative, or the Michigan Association of Substance Addiction Providers, or just interested in collaboration, please contact [email protected], for more information on the value of membership. If you know of someone who might find this content, please share this link to the newsletter.
Disclaimer: This newsletter is intended for informational purposes only. Sources have been cited where applicable, and while some content may have been drafted with the assistance of AI, all material has been reviewed and edited by humans. We strive for accuracy, but if you believe something is incorrect or misrepresented, please reach out via direct message so we can review and correct the record if necessary.
