Financial Reallignment

August 01, 2017

VNPP, among other associations, was invited to participate in a discussion with Interim Commissioner Dr. Jack Barber about the financial realignment of the state hospital system. A report, in response to s mandate from the General Assembly, is due by December 1st.

The option being considered is to move the vast majority of the funding from the state facilities to the CSBs (through a formula that has not yet been determined) to allow them to purchase services – acute inpatient, public or private, or alternative services.  If properly planned, funded and implemented the census of the state facilities (currently at nearly 100%) would be significantly reduced.

There are a multitude of potential problem areas:

  • would sufficient funds be available to build up and maintain community services,

  • will state hospitals be able financially to give up enough funding to make the program viable and still be able to retain staff and capacity to allow CSBs to purchase beds when needed,

  • will the funding be sustainable, and

  • will supports provided for either diversion or to help removed a barrier to discharge be sustainable for specific individuals over a long enough to period of time, etc.


VNPP will provide additional comments and will track this initiative.  The presentation is available here