Division of Mental Health and Addiction Services

Beginning January 1, 2017, the Division of Mental Health and Addiction Services (DMHAS) instituted a new approach to funding certain community- based mental health services, known as the Mental Health Fee-for-Service Program (“MH FFS Program”). The MH FFS Program pays provider agencies under contract with the DMHAS to deliver community-based mental health services on a fee-for-service basis.

The MH FFS Program reimburses contracted FFS providers for non-Medicaid eligible consumers and non-Medicaid reimbursable services and is funded primarily from State appropriations. In order to conserve that limited resource, the MH FFS Program is the payer of last resort. As such, payment through the MH FFS Program is prohibited when other sources of payment are available, such as Medicaid, Medicare, charity care, or private insurance.

Contracted provider agencies with eligible FFS program elements transitioned from their current cost-related contracts with installment payments (also known as cost-reimbursement contracts) to a non-cost related contract with fee-for-service payment on July 1, 2017. Community Support Services (CSS) programs have been offered the choice of transitioning to FFS on either July 1, 2017, or remaining cost-based until January 1, 2018, when they will transition to FFS.