Dallas, Texas-based Metrocare Services, the largest provider of mental health and developmental disability services in Dallas County, has secured authorization for an emergency loan of up to $18 million from Dallas-based Parkland Health as it projects a funding shortfall of approximately $10 million to $15 million, a Metrocare Services spokesperson told Becker’s.
Parkland’s board authorized the loan July 13, and Metrocare’s board approved it July 15. Metrocare and Parkland have discussed closer collaboration for several years, but Metrocare’s financial challenges accelerated the timeline for the agreement.
Parkland may provide Metrocare with up to $18 million in emergency financial support for immediate operating expenses while the behavioral health provider implements its financial stabilization plan, according to the spokesperson. The support is intended to help ensure continuity of patient care and preserve disability, homeless and mental health services.
Metrocare previously disclosed it projected a funding shortfall of approximately $10 million to $15 million and anticipated a cash shortfall by the end of the month. According to the spokesperson, the organization continues to project a funding shortfall, which it has attributed to rising costs, flat state reimbursement rates, increased demand for services and changes to federal funding.
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