Kandiyohi County Board Faces Medicaid Cuts, Woodland Centers Struggles with Revenue Loss
- Meeting Overview:
During the recent Kandiyohi County Board of Commissioners meeting, significant concern centered around the financial challenges impacting Woodland Centers due to reduced Medicaid services. The board addressed the consequences of a notable decrease in Medicaid coverage, which has led to substantial revenue losses for the mental health service provider. This shortfall has forced Woodland Centers to reduce staffing levels, particularly among contracted telehealth psychiatry and therapy employees from Novatel. The board discussed strategic collaboration among county directors to maintain service viability without compromising fiscal responsibility, acknowledging the critical role of Woodland Centers in the community.
Dr. Ashley Chos, Chief Executive Officer of Woodland Centers, provided an overview of the organization’s operations and challenges. She highlighted that the reduction in Medicaid services in mid-2024 prompted a decrease in revenue while demand for services continued to rise. This situation necessitated staff reductions, affecting both contracted and internal employees, including care coordinators and nurses. Dr. Chos noted that the change in payer mix, rather than contractual obligations, drove these cuts. The board expressed concern about the potential for clients to “fall through the cracks” due to these changes, although efforts are ongoing to transition affected clients to other providers.
The importance of Woodland Centers’ services was underscored by Board members, who emphasized the county’s responsibility as a mental health authority to meet community needs. Discussions explored the need for strategic collaboration to navigate financial strains and ensure taxpayer dollars are effectively utilized. The urgency of maintaining service accessibility was highlighted, with an acknowledgment of the broader financial challenges faced by service providers across the state.
A related discussion focused on Woodland Centers’ introduction of an urgent care model, which allows clients to access services without requiring in-home visits. This model has proven effective, with 704 urgent care services reported in the last year. Law enforcement referrals to the urgent care service further validate its community impact. Details on staffing changes at Woodland Centers revealed a reduction from approximately 250 to 225 employees, with retention rates improving significantly, attributed to efforts in enhancing workplace culture and communication.
Financial concerns were compounded by a decrease in Medicaid coverage, traditionally accounting for around 70% of services but now representing only 61%. Dr. Chos expressed concern over the significant revenue loss and the potential impact on service accessibility, as individuals may resort to emergency services if unable to access necessary care. The discussion also touched on the modality of service delivery, with approximately 70% of services provided face-to-face in 2024, though telehealth remains an option for certain programs.
Moving beyond Woodland Centers, the board addressed child welfare services and proclaimed April as Child Abuse Prevention Month. Caroline Khan, Health and Human Services Director, read the proclamation, emphasizing the societal responsibility to protect children’s well-being. The board unanimously approved the proclamation, recognizing the challenging work of child protection staff and the complexities they face. Updates from the children’s services department revealed a significant caseload and ongoing efforts to minimize trauma to families while ensuring safety.
Additionally, the meeting highlighted the Hawk Creek Watershed Project Update, presented by Heidi Roundhurst. The project operates under a joint powers agreement among Chippewa, Kandiyohi, and Renville counties, focusing on water quality initiatives. The organization has secured nearly $18 million through federal funding, emphasizing the importance of local control over water quality efforts. Roundhurst discussed the watershed’s monitoring activities, collaboration with the Minnesota Pollution Control Agency, and ongoing challenges in addressing water quality impairments.
Among infrastructure discussions, potential upgrades to the Highway 12 bypass in downtown Wilmer received support. The board recognized the initiative as timely, especially given prospective crossing closures at 7th and 10th Streets Southwest. Plans for the community engagement process were detailed, aiming to establish a family resource center supported by a $96,000 grant from the Sour Family Foundation. The initiative seeks to gather input from 10,000 community members over nine months, focusing on sustainable resource center development.
Kelsey Baker
County Council Officials:
Steve Gardner, Duane Anderson, George Corky Berg, Dale Anderson, Roger Imdieke
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Meeting Type:
County Council
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Committee:
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Meeting Date:
04/01/2025
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Recording Published:
04/01/2025
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Duration:
150 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Kandiyohi County
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Towns:
Arctander Township, Atwater, Blomkest, Burbank Township, Colfax Township, Dovre Township, East Lake Lillian Township, Edwards Township, Fahlun Township, Gennessee Township, Green Lake Township, Harrison Township, Holland Township, Irving Township, Kandiyohi, Kandiyohi Township, Lake Andrew Township, Lake Elizabeth Township, Lake Lillian, Lake Lillian Township, Mamre Township, New London, New London Township, Norway Lake Township, Pennock, Prinsburg, Raymond, Regal, Roseland Township, Roseville Township, Spicer, St. Johns Township, Sunburg, Whitefield Township, Willmar, Willmar Township
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