Oklahoma Considers Privatizing State Mental Health Facilities to Boost Service Expansion

by Shreeya

The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is considering privatizing four of its state-run behavioral health centers.

On Friday, the agency issued a request for proposals seeking private providers to operate Certified Community Behavioral Health Clinics (CCBHCs) in certain areas, taking over from state-run facilities.

The move has raised concerns about the future of current state employees and the ability to fully fund existing services, according to some providers.

“The request for proposal is an initial fact-finding step to explore options and assess whether a private operator could enhance technology, modernize facilities, and support long-term workforce needs,” the agency said in a news release.

The RFP focuses on CCBHCs in Lawton, McAlester, Norman, and Fort Supply. The award grants the right to operate a CCBHC in a specific area. These federally certified clinics provide mental health and substance abuse treatment to all, regardless of ability to pay, and offer 24/7 crisis response, according to ODMHSAS.

“ODMHSAS is exploring whether partnering with a private provider could improve technology, expand workforce capacity, and provide more consistent statewide services. No decisions have been made,” said Maria Chaverri, a department spokesperson.

The RFP also covers Logan and Oklahoma counties, which are being reopened to meet rising demand and population growth.

Winning bidders must interview all willing incumbent staff during a designated overlap period and use existing state-run facilities, the RFP states.

Joy Sloan, president of the Alliance of Mental Health Providers of Oklahoma and CEO of the Muskogee CCBHC, said the proposal could push state-operated centers out of business.

“Current certified clinics will likely bid to expand their service areas and take over the state-run facilities,” Sloan said. She also raised concerns about underfunding, noting that the state has delayed payments for millions of dollars in services.

Sloan added that employees at state-run centers could face uncertainty about job security if privatization occurs.

ODMHSAS will accept proposals through Jan. 17.

The department, facing financial challenges this year, is reviewing hundreds of contracts. Reports from the State Auditor and Inspector and the Legislative Office for Fiscal Transparency have documented patterns of overspending. Officials have said savings from contract reviews will be disclosed only after the review is complete.

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