The Oklahoma Department of Mental Health and Substance Abuse Services is requesting an additional $6.2 million from the legislature this fiscal year to continue offering services through July.
The request comes after the state canceled funding contracts with three Certified Behavioral Health Clinics in Tulsa last Friday. The cancellations fueled fears about a potential lapse in care and caused stress among service providers and their clients.
Mental Health Department Commissioner Allie Friesen acknowledged confusion in a written statement late Friday afternoon and made assurances no services would be forced to stop.
She said the termination letters sent to GRAND Mental Health, CREOKS and Family & Children's Services were not connected to the department's recently revealed $43 million budget shortfall or its efforts to pare down partner agency contracts.
"This issue is entirely unrelated to funding gaps or contract optimization," Friesen wrote. "Our commitment to delivering high-quality behavioral health services remains strong as we work toward lasting solutions and operational excellence."
In a press release announcing the request for supplemental state funding, the department said extra money will allow for "continued delivery of essential behavioral health services across the state."
The department also said it completed a "top-to-bottom" review of its revenue streams, expenditures and operational efficiencies.
Whether the department gets the $6.2 million is up to the state legislature. If granted, the department said it will use the money fill gaps for the following expenses:
- $6,677,361 – IT and software upgrades
- $9,035,399 – Title XIX Medicaid match (March–June 2025)
- $35,489,000 – Enhanced Tier Payments for service providers (3 quarters)
- $4,201,764 – Value-Based Payments for service providers (3 quarters)
Immediately following the department's ask, Gov. Kevin Stitt said he plans to appoint a special investigator to examine the agency. He said the investigation was prompted by "disturbing discoveries with the previous leadership's finances and contracting practices."
Before Stitt appointed Friesen to head the department in January 2024, it was run by Carrie Slatton Hodges for four years. She had served under her predecessor, Terri White, for more than a decade.
Friesen said the department welcomes the investigation and will fully cooperate. The special investigator will have access to everything except protected health information and is expected to regularly update the Governor's office of its findings.
The department is already the subject of a special state audit, also requested by Stitt, and is also under review by the Legislative Office of Fiscal Transparency (LOFT) – the special commission set up by the legislators to investigate public spending.
This report was produced by the Oklahoma Public Media Exchange, a collaboration of public media organizations. Help support collaborative journalism by donating at the link at the top of this webpage.
