More Patients, Rising Drug Costs Lead to Financial Problems at Texas Mental Health Center

A rise in the number of patients and increasing prescription drug costs could "force" officials at the Austin Travis County Mental Health Mental Retardation Center in Austin, Texas, to make some "painful decisions," including turning away patients, the Austin American-Statesman reports. The facility, which each year provides mental health services to about 6,000 low-income adults with severe mental illnesses and about 17,000 indigent individuals, treated about 2,522 patients in January, a 14% increase over the number treated in January 2001. Prescription drug costs also have increased, as the center's psychiatrists are prescribing costlier, "new generation" drugs. Because of the increasing expenses, the center has had to use $598,895 from its cash reserves, CFO Charles Bowker said. The center receives about $37 million per year in local, state and federal funding. The amount of money in the center's cash reserve fund has fallen from $5 million in 2000 to $3.9 million in 2002, below the $6.4 million the state requires the facility to have. If the financial problems continue, David Evans, the center's CEO, said the facility might have to turn away patients. Spencer McClure, CEO of the Texas Council of Community Mental Health Mental Retardation Centers Inc., a not-for-profit advocacy group, said the Austin center is not alone in its financial troubles. Many of the other 41 centers throughout Texas are experiencing similar cost problems, partly because Texas "is at the bottom [of] the pile in spending on mental health and mental retardation," McClure said. McClure is working with 12 other advocacy groups to persuade state legislators to "step up and provide greater support to local centers" (Roser, Austin American-Statesman, 3/1).