California system considers cutting outpatient programs to save $9M

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Alameda (Calif.) Health System is seeking to close two intensive outpatient treatment programs at Highland Hospital in Oakland, Calif., and Fairmont Hospital in San Leandro, Calif., according to a Feb. 11 public notice from the Alameda County Board of Supervisors. 

The programs serve patients with moderate to severe mental illness. The proposed closures are part of a broader set of service reductions and cost-cutting measures under consideration by the system. 

At Highland Hospital, the proposed closure would end the outpatient behavioral health wellness program, which provides group therapy, limited individual therapy for patients, and monthly psychiatric monitoring and care from a psychiatrist. The system also plans to end its complex care program at the hospital, which offers care management services for patients with substance use disorder, serious mental health conditions, those experiencing homelessness and avoidable hospital utilization. Ending and reducing the programs would eliminate 18 filled positions and is expected to save a total of $4.4 million.

At Fairmont Hospital, the system plans to close a broader set of outpatient services, including partial hospitalization, intensive outpatient and wellness programs that allow patients to step down in care as they stabilize, with psychiatric oversight and long-term follow-up. The closures would eliminate 30 positions and are expected to save $4.9 million.

About 135 patients are currently enrolled in the programs and would be referred to other outpatient programs, according to the report. 

The proposed changes are subject to state review and require a public hearing before services can be discontinued. A hearing is scheduled for Feb. 25.

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