Oklahoma City — The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is requesting $6.2 million in supplemental funding from the state legislature to ensure continued behavioral health services through the end of the current fiscal year.
The urgent appeal follows the state’s abrupt termination of funding contracts with three Certified Community Behavioral Health Clinics in Tulsa — GRAND Mental Health, CREOKS, and Family & Children’s Services — a move that sparked widespread concern among service providers and their clients about potential gaps in care.
Commissioner Allie Friesen sought to clarify the situation in a statement released late Friday, assuring the public that no disruption to essential services would occur.
“The termination letters issued are entirely unrelated to the department’s $43 million budget shortfall or any efforts to restructure contracts,” Friesen stated. “Our commitment to delivering high-quality behavioral health services remains strong as we pursue long-term solutions and operational excellence.”
In a press release accompanying the funding request, the department said the additional funds would enable the “continued delivery of essential behavioral health services across the state,” noting it had already conducted a comprehensive internal review of its financial structure, including revenue sources, expenditures, and efficiencies.
The supplemental funding would support the following allocations:
- $6.7 million for IT and software upgrades
- $9 million for Title XIX Medicaid match (March–June 2025)
- $35.5 million for Enhanced Tier Payments to service providers (for three quarters)
- $4.2 million for Value-Based Payments to service providers (for three quarters)
While the department awaits a decision from lawmakers, Governor Kevin Stitt announced that he would appoint a special investigator to examine the agency, citing “disturbing discoveries” tied to the financial practices of previous leadership.
ODMHSAS was previously headed by Carrie Slatton-Hodges, who served from 2020 until early 2024. Before that, she worked under long-time commissioner Terri White. Friesen assumed leadership of the department in January.
Friesen said the department would fully cooperate with the investigation, which will have access to all records except those protected under health privacy laws. The investigator is expected to provide regular updates to the Governor’s office.
The department is already under the scrutiny of two additional oversight bodies: a state-ordered special audit and a parallel investigation by the Legislative Office of Fiscal Transparency (LOFT), the legislative watchdog group responsible for examining the effectiveness of public spending.
The outcome of the $6.2 million funding request now lies with the Oklahoma legislature, which will determine whether the department receives the financial support needed to avoid service disruptions in the coming months.
