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Financing

Funding Opportunities for Integrated Treatment

States and communities looking to finance integrated treatment for co-occurring disorders should consider a wide range of possibilities. Typically, programs are funded by combining funding from several sources.

Federal Grant Funding Opportunities

  • Over the years, the Substance Abuse and Mental Health Services Administration (SAMHSA) has provided a variety of grant opportunities supporting integration of behavioral health care on multiple levels. See www.samhsa.gov.
  • The National Institutes of Health (NIH), including the National Institute on Drug Abuse (NIDA), the National Institute on Alcohol Abuse and Alcoholism (NIAAA), and the National Institute of Mental Health (NIMH) emphasize funds for research. Treatment for people with co-occurring disorders can potentially be funded if it is in conjunction with a research project. See www.nida.nih.gov exit disclaimer, www.niaaa.nih.gov exit disclaimer, and www.nimh.nih.gov exit disclaimer.
  • Other Federal agencies also may provide funding for initiatives related to people with co-occurring disorders, such as the Health Resources and Services Administration (HRSA) within the U.S. Department of Health and Human Services, the U.S. Department of Justice (DOJ), and the U.S. Department of Labor (DOL), among others. To determine what funding opportunities are currently available, visit the websites of these agencies or search the Catalog of Federal Domestic Assistance website www.cfda.gov exit disclaimer.

Federal Block Grant Funding

States may develop flexible funding streams for integrated services for individuals with co-occurring disorders by combining Substance Abuse Prevention and Treatment and Community Mental Health Services Block Grant funds. SAMHSA has released a position statement with instructions about how to blend Substance Abuse Prevention and Treatment and Community Mental Health Services Block Grant funds to provide services for individuals with co-occurring disorders.

Medicaid

States use a variety of strategies to increase Medicaid coverage for integrated co-occurring services. Strategies include:

  • Modifying Medicaid regulations regarding service definitions and billing codes so that effective practices services are reimbursable.
  • Negotiating for Medicaid managed care contracts to cover integrated care for people with co-occurring disorders.

State Funding Opportunities

Agencies should become familiar with State-level funding mechanisms that can be used to support integrated services for individuals with co-occurring disorders. Many states use general revenue or other funds to provide "cross-over" funding to support provision of integrated services. For instance, in Illinois, separate state mental health and substance abuse treatment authorities provide funds to providers in the other system so that they can extend their services to include care for people with co-occurring disorders.

Information is available from: the National Association of State Alcohol/Drug Abuse Directors website exit disclaimer and the National Association of State Mental Health Program Directors website exit disclaimer.

Private Funding Opportunities

Foundation funding can be used to initiate pilot programs, provide matching funds to leverage other funding, and/or enhance existing programs with an "add-on" service such as peer mentoring. Information on private foundations can be found through the Foundation Center website exit disclaimer.


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