Washington state’s network of mental health crisis centers may be in jeopardy if the state cannot secure a sustainable funding model, The Seattle Times reported Jan 5.
The centers were created to divert patients from emergency departments and jails, but limited Medicaid coverage and low compliance among commercial payers have left the state unable to absorb significant costs.
At a Kirkland, Wash., facility — the sole center currently operating — 55% of patients in its first year of operation were on Medicaid, while 23% had commercial insurance, with compliance being poor. Coverage for the remaining 22% — including some costs of commercial insurance — was provided by state funds for uninsured individuals or the patients were covered by Medicare or military insurance, according to the report.
King County has addressed funding gaps with a $1.25 billion property tax levy to support five centers, but other counties lack similar resources. The Health Care Authority requested $38 million in the 2026 supplemental budget to cover non-Medicaid costs statewide, and $700,000 specifically for a new center in Thurston County. Neither request was included in Democratic Gov. Bob Ferguson’s proposed budget.
A center in Lynnwood, Wash., funded with $3 million in startup support from Snohomish County, remains unopened amid uncertainty over how uninsured care will be reimbursed. It plans to launch a 23-hour crisis relief program in the first quarter of 2026, followed by a crisis stabilization unit, according to the report.
Operators warn that without dedicated funds, new facilities may not open — or may turn patients away. Connections Health Solutions, which runs the Kirkland center, said it will not commit to opening more facilities unless the model is financially sustainable.
Later in 2026, changes to Medicaid will take effect. The state estimates between 200,000 and 320,000 Washington residents will lose insurance coverage.
Lawmakers will revisit crisis center funding in the legislative session that begins Jan. 12.
