CALL TO ORDER DISCUSSION

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1 CALL TO ORDER DISCUSSION A conference call meeting of the South Carolina Mental Health Commission was called to order on Thursday, September 20, 2012, at 2:00 p.m., in room 321, by Alison Y. Evans, PsyD, Chair. After opening the meeting, Dr. Evans turned the meeting over to John Magill, State Director. Mr. Magill explained that the purpose of the conference call was to present to the Commission the Department s budget request for FY 14. This request has to be submitted to the Governor s Office on Friday, September 21. Mr. Magill said the Department not only tried to do a reasonable budget request, but a request containing what we need in order to maintain the agency s mental health services at current levels. Under the Operating Budget, there are four major areas we are requesting funding for: $9.4 million for Sustainability of Mental Health Services. As Mr. Magill explained, last year s request contained an item whereby DMH would request $7 million each year for a three year period in order to replace diminishing non-recurring funds, so the agency can maintain its mental health inpatient and community services at current levels. For FY 14, the Department is increasing its request for additional recurring funds from $7 million to $9.4 million. The $2.4 million increase represents one-half of the amounts SCDMH had to selffund as a result of the 3 percent base pay increase passed by the General Assembly, and fringe, including the rate increases for the state s health plan, and rate increases for the employer retirement contribution rate. $1.4 million for growth in the Sexually Violent Predator Treatment Program (SVPTP). The Department was successful last year in receiving full funding for this program from state funds. Over the last several years, as the budget was reduced, DMH did not receive full funding for this program. As our budget decreased, and the General Assembly did not appropriate funding for the Sexually Violent Predator Treatment Program, agency funds had to be

2 taken from other programs earmarked for the mentally ill, and used to operate this program. The General Assembly recognizes that they should fully fund the cost of this program as the agency is mandated by state law to operate the program. The legislature also recognizes that the census of this program and corresponding costs of operation are expected to continue to increase. In fact, the census in the program is currently exceeding the rate of growth DMH projected last January. DMH is requesting $1.4 million to cover the expected increase in costs of operation for FY 14. $1.2 million for the Veterans Nursing Homes. The Department bolstered the census in the veterans nursing homes and it is trying to keep all the beds filled. The census is much higher than it was previously and we are serving more veterans than ever before. The agency is asking for the $1.2 million to cover the increased cost of operating the homes. $500,000 for Sustainability of the Telepsychiatry Program. The Department received $500,000 last year from the General Assembly for the operation of the Telepsychiatry consultation program. DMH has received continued grant funding for this program from The Duke Endowment; however, it has been understood that eventually grant funding for the program will end. DMH has instituted user fees for the participating hospitals, but will also need additional State recurring funds to replace the expected reduction or loss of grant funding. Moreover, if DMH receives an additional $500,000 from state funds in FY 14, The Duke Endowment will be more likely to continue grant funding this program at some level. Mr. Magill presented the list of capital and one-time funding requests. He explained that all the capital items are on the agency s Comprehensive Permanent Improvement Plan (CPIP) which means they represent DMH s priority for funding. The first three requests under Capital represent the oldest physical plant buildings in the community mental health system. Since all of these items are important items, the decision to fund any one project is usually up to whatever member of the General Assembly who has an interest in and wants to have a

3 particular item funded. Capital Request: Santee-Wateree MHC Construction - $ 9,856,000 Anderson-Oconee-Pickens MHC Construction - 9,592,000 Catawba MHC Construction - 10,580,000 Community Buildings Deferred Maintenance - 3,393,630 Harris Hospital HVAC Renovations - 7,100,000 Inpatient and Support Buildings Deferred Maintenance - 9,049,000 Roddey Nursing Home FRTW Roof Replacement - 3,700,000 Columbia Area MHC Carter Street Renovations - 2,500,000 One-Time Funding: Inpatient Electronic Medical Record - $ 4,905,000 Pharmaceutical Automated Dispensing Machine - 1,000,000 Law Enforcement Vehicles, 5 new - 126,005 Physical plant vehicles for patient transport - 556,391 Mr. Magill explained that an Electronic Medical Record is desperately needed in the inpatient facilities. Versie Bellamy explained how the Pharmaceutical Automated Dispensing Machine operates and said that having this system will result in cost savings and patient safety. Dr. Bank explained that it allows the correct amount of medication to be dispensed. The Joint Commission feels this area is high risk for our hospitals and has spoken to Inpatient Management over the years regarding the value of this system. Mr. Magill said that new patrol vehicles are needed as the current vehicles have high mileage, resulting in high maintenance costs. Also needed are vehicles for patient transport for the same reasons as the law enforcement vehicles, high

4 mileage and high repair bills. Mr. Magill said the agency received no specific guidance as to how much it should request for next year. The Board of Economic Advisors has been estimating a fairly dismal year for new revenues, and both Medicaid and Education are likely going to be seeking substantial funding increases. It could be a difficult year, so the agency kept its requests modest. However, Mr. Magill said that if DMH doesn t receive the sustainability piece, the Department will have to begin reducing services. Mr. Magill said this budget needs to be submitted on Friday, September 21. The Commission was in agreement with the budget request as submitted. **UPDATE** Following the Conference call on September 20 concerning the Department s FY 14 Budget Request to the Governor, there was further discussion between the State Director and Senior Management about the request for additional funds for the veterans nursing homes, and a competing priority: additional funds to address the increasing waiting list of criminal defendants committed to the Department s secure forensic hospital. It was the consensus of Department leadership that additional funds for the forensic program, another mandated agency responsibility, was a higher priority. Accordingly, the nursing home funding request was removed and replaced with a request for funding a residential program for forensic patients. The dollar amount requested for the Forensic Inpatient Program is $1.2 million. A vacant building has been identified for this program, which is on the Crafts-Farrow campus, and previously housed forensic patients. The Commission was apprised of, and approved this change. Attached to these minutes is the FY 14 budget request initially discussed, as well as the revised budget request.

5 NOTICE/AGENDA ADJOURNMENT ATTENDANCE Commission Members Staff/Guests APPROVALS A notice and agenda of the conference call/meeting were sent out to all individuals and news media who requested information, in accordance with state law. There being no further business, the conference call meeting was adjourned at 2:25 p.m. Alison Y. Evans, PsyD, Chair Joan Moore (excused) J. Buxton Terry Everard O. Rutledge, PhD Jane B. Jones Beverly F. Cardwell John H. Magill Geoff Mason Mark Binkley Robert Bank, MD Versie Bellamy David Schaefer Hannah Kelly Alison Y. Evans, PsyD, Chair Connie Mancari, Recording Secretary

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