Without state intervention, Woodlands Behavioral Healthcare will run out of funds by September
Woodlands officials have been sounding the alarm for months, warning that Michigan’s community mental health system is in dire financial straits.
Cass County Community Mental Health, better known as Woodlands Behavioral Healthcare, is asking for the community’s assistance in reaching out to state officials. The community mental health agency serves the residents of Cass County, Michigan, especially those with disabilities, severe mental illness, substance use disorders, and those in crisis situations.
The agency’s previous statement on social media outlines the precarious financial position facing the state’s community mental health agencies at the end of last year. Lack of meaningful action during the lame duck session prevented Woodlands from reaching financial stability. Current estimates put Woodlands an estimated $3.5 million in the red by the planned disbursement of Medicaid funds in April 2026.
The reality is that, without government support, Woodlands Behavioral Healthcare will not be able to compensate providers of adult and children’s disability and mental health services past September 30, 2025. This would include specialized residential care, community living supports, supported employment, and autism services, among others.
Chief Executive Officer, John Ruddell, and others have sought to impart the urgency of our situation to local representatives, the governor’s office, and officials at the Michigan Department of Health and Human Services, and to ask them for assistance. On March 11, 2025, Ruddell joined Dr. Michael Brashears (CEO, Ottawa Co. CMH), Bradley Casemore (CEO, Southwest Michigan Behavioral Health), Richard Carpenter (CPA, Director, Public Sector Outsourcing, Rehmann), and Alan Bolter (Associate Director, Community Mental Health Association of Michigan) in testifying before the Michigan House Subcommittee on Medicaid and Behavioral Health.
Despite the efforts, there has been no meaningful action by either the legislature or the Michigan Department of Health and Human Services (MDHHS). Staff and providers have been notified of the organization’s financial outlook and are working together to weather the crisis.
If you would like to advocate for Woodlands, please reach out to your state representative or senator, MDHHS, or the appropriate committee members of the Michigan House of Representatives or Michigan Senate.
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