FY 2016 Appropriation

The Utah State Hospital (USH) is an Institution for Mental Disease (IMD) that complements the local mental health centers by providing specialized services not available in community settings. The hospital's population includes adults and children for whom no appropriate, less restrictive environment is currently available. Various services are provided for four groups of people: 1) pediatric services for children and adolescents, 2) forensic services for those found not guilty of crimes by reason of insanity, guilty and mentally ill, or not competent to proceed with court actions, 3) adult services for adults who are civilly committed, and 4) Acute Recovery Treatment Unit (ARTC) for acute care of adults from four rural mental health centers: Central Utah MHC, Four Corners MHC, Northern Counseling Center, and San Juan MHC.

Additional information regarding the Utah State Hospital can be found on its official website found at: Utah State Hospital

Funding History

Funding Issues

Replace Lost Medicaid Funding

This request results from Medicaid auditors disallowing previous cost allocation methods which lowered the annual Medicaid payments to the State Hospital. Medicaid auditors recommended various changes to the Utah State Hospital (USH) cost allocation methods previously agreed upon by both parties which have now lowered the annual Medicaid payments to the State Hospital. Lowering the Medicaid payments has the effect of increasing the state funding requirement.
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $59,342,600 from all sources for State Hospital. This is a 5.4 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $43,263,400 from the General/Education Funds, an increase of 4.1 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Forensic Competency Restoration$300,000$0
OngoingOne-TimeFinancing Source
$300,000$0General Fund
County needs for competency evaluations are exceeding the availability of State Hospital forensic beds. The forensic program has 100 beds. Forensic adults are "adults who have been adjudicated and found not competent to stand trial. These patients are held in a secure facility (regardless of the severity of the crime they are accused of committing) until competency can be restored. . . The forensic unit also holds and treats patients who have been adjudicated and been found guilty or not guilty and mentally ill [20%]. . . Forensic patients cost more than civilly committed adult patients. Over the past four fiscal years, the average cost for forensic patients was $475 per patient day. The average cost for a civilly committed adult was $434 per patient day." A review by the Department of Human Services has determined that a less expensive option than adding more State Hospital forensic beds is to hire State Hospital level staff to go directly to county jails and restore competency there. This option allows the use of existing jails to provide the room and board.
Replace Lost Medicaid Funding$1,100,000$0
OngoingOne-TimeFinancing Source
$1,100,000$0General Fund
This request results from Medicaid auditors disallowing previous cost allocation methods which lowered the annual Medicaid payments to the State Hospital. Medicaid auditors recommended various changes to the Utah State Hospital (USH) cost allocation methods previously agreed upon by both parties which have now lowered the annual Medicaid payments to the State Hospital. Lowering the Medicaid payments has the effect of increasing the state funding requirement.
State Hospital Savings regarding HB 14 (2012 GS) ($32,500) ($32,500)
OngoingOne-TimeFinancing Source
($32,500)$0General Fund
$0 ($32,500)General Fund, One-time
DHS - State Hospital Savings re H.B. 14 (2012) GS - The original fiscal note anticipated 4 individuals civilly committed to the State Hospital as a result of this bill. There has only been one civil commitment to the State Hospital since enactment of the bill. The State Hospital did hire staff to prepare for the effects of H.B. 14 at an ongoing cost of $167,500 leaving an ongoing surplus of $32,500.
Staff Analysis

For the most recent completed fiscal year, the following information represents the purposes for which the money was used:

Utah State Hospital Detailed Purposes

Beds in both adult and pediatric civil units at the State Hospital are distributed based upon formulas established in statute (UCA 62A-15-611 and 612) which reflect "the percentage of the state's . . . population located within a mental health catchment area" and several other smaller mitigating factors. The Forensic units at the State Hospital are considered statewide programs as well. However, the funding for forensic units is not distributed based upon a formula. Instead, "all the money comes to the State Hospital and serves patients statewide as determined by the judges."

Adult Psychiatry: Median length of stay

Forensic Services: Median length of stay (days)

Pediatrics: Median length of stay (days) (weighted avg. of youth and adolescents)

Regarding the positive trend greater than 5% in the adult population median length of stay (LOS) from the state hospital performance measure, the hospital states, "Variation depends upon patient acuity and barriers in discharge planning identified by treatment team and LMHA's. Severity of illness for patients admitted is not equal across the board and can vary from year to year. 2013 increase LOS could be a result of closing 30 beds in 2012 as lower acuity patients were released . . . Though measuring Length of Stay has to take into consideration the impact of many variables (i.e., housing availability, patient clinical acuity, finance and benefit approvals, and other discharge barriers); it is a valuable indicator in monitoring systemic efficiencies and trends. 2013 USH increase LOS for Adult patients could have been the result of closing 30 beds in 2012 as lower acuity patients were released. USH does track other outcome measures that are specific to our clinical care such as BPRS and SOQ which are included in other reports. LOS was chosen and has been tracked as part of the COBI for quite some time inasmuch as it is still seen as a valuable systems indicator. Though measuring Length of Stay has to take into consideration the impact of many variables (i.e., housing availability, patient clinical acuity, finance and benefit approvals, and other discharge barriers); it is a valuable indicator in monitoring systemic efficiencies and trends. 2013 USH increase LOS for Adult patients could have been the result of closing 30 beds in 2012 as lower acuity patients were released. USH does track other outcome measures that are specific to our clinical care such as BPRS and SOQ which are included in other reports. LOS was chosen and has been tracked as part of the COBI for quite some time inasmuch as it is still seen as a valuable systems indicator . . . Though measuring Length of Stay has to take into consideration the impact of many variables (i.e., housing availability, patient clinical acuity, finance and benefit approvals, and other discharge barriers); it is a valuable indicator in monitoring systemic efficiencies and trends. 2013 USH increase LOS for Adult patients could have been the result of closing 30 beds in 2012 as lower acuity patients were released. USH does track other outcome measures that are specific to our clinical care such as BPRS and SOQ which are included in other reports. LOS was chosen and has been tracked as part of the COBI for quite some time inasmuch as it is still seen as a valuable systems indicator."

Regarding the negative trend greater than 5% in the forensic population median length of stay (LOS) from the state hospital performance measure, the hospital states, "Variation depends upon patient acuity, coordination with district courts, patient competency restoration, etc."

Regarding the positive trend greater than 5% in the pediatric population median length of stay (LOS) from the state hospital performance measure, the hospital states, "Variation depends upon patient acuity and barriers in discharge planning identified by treatment team and LMHA's. Overall trend with length of stay is improving over the past 8 years."

Most adult patients in the Utah State Hospital are not eligible for Medicaid funding because of regulations associated with the federal Omnibus Reconciliation Act (OBRA) of 1987. These regulations define any nursing facility with 40 percent or more mentally ill residents as an IMD and then prohibit Medicaid funding for residents between the ages of 22 and 65 living in an IMD.

Adult services provide 152 beds to the community mental health centers as prescribed by state statute. Pediatric services provides 72 beds to the community mental health centers as prescribed by state statute. The beds available for use by the local mental health centers are allocated according to population. UCA 62A-15-611 governs the adult allocation and UCA 62A-15-612 governs the pediatric allocation. The statute indicates that as the state population changes, the distribution of beds available to the local authorities should be reviewed and reallocated.

Intent Language

HB0003: Item 89

Under Section 63J-1-603 of the Utah Code, the Legislature intends that any remaining funds provided by Item 38, Chapter 13, Laws of Utah 2014 for the Drug Courts program within the Department of Human Services' Division of Substance Abuse and Mental Health line item not lapse at the close of Fiscal Year 2015. The use of any non-lapsing funds is limited to "other charges/pass through" expenditures consistent with the requirements found at UCA 63J-1-603(3)(b).


HB0003: Item 89

Under Section 63J-1-603 of the Utah Code, the Legislature intends that any remaining funds provided by Item 38, Chapter 13, Laws of Utah 2014 for State Substance Abuse Services and Local Substance Abuse Services within the Department of Human Services' Division of Substance Abuse and Mental Health line item not lapse at the close of Fiscal Year 2015. The use of any non-lapsing funds is limited to "other charges/pass through" expenditures consistent with the requirements found at UCA 63J-1-603(3)(b).


HB0003: Item 89

Under Section 63J-1-603 of the Utah Code, the Legislature intends that up to $50,000 of appropriations provided for the Department of Human Services' Division of Substance Abuse and Mental Health line item in Item 38, Chapter 13, Laws of Utah 2014 not lapse at the close of Fiscal Year 2015. These funds are to be used for the purchase of computer equipment and software, capital equipment or improvements, equipment, or supplies.


SB0002: Item 82

The Legislature intends the Department of Workforce Services and the Administrative Offices of the Courts provide a report to the Office of the Legislative Fiscal Analyst no later than September 1, 2015. The report shall include, at a minimum: 1) a summary of efforts to improve coordination between the Drug Court program and DWS' Workforce Development Division in order to improve Drug Court success, 2) data indicating the success of the efforts including the implementation and reporting on measures of post program recidivism, and 3) any identified savings or additional funding of drug court recipients as a result of improved coordination efforts.


SB0002: Item 82

The Legislature intends that the one-time General Fund appropriation of $6,400,000 to the Department of Human Services for Local Authority Mental Health Medicaid Match is provided to assist local mental health authorities for one year until they can find ways to provide their own matching funds in the future. The Legislature further intends the local mental health authorities report their plans to provide their own matching funds in the future to the Office of the Legislative Fiscal Analyst by September 1, 2015.


SB0002: Item 82

The Legislature intends that the $300,000 in federal funds appropriated for Children's Mental Health Early Intervention for Children and Youth in the Department of Human Services in the Division of Substance Abuse and Mental Health line item is dependent upon the availability of and qualification for the Children's Mental Health Early Intervention for Children and Youth for Temporary Assistance for Needy Families federal funds.


SB0007S01: Item 9

The Legislature intends that the Department of Human Services report on the following performance measures for the Substance Abuse and Mental Health line item: (1) Local Substance Abuse Services - Successful completion rate (Target = 40%), (2) Mental Health Services - Adult Outcomes Questionnaire - Percent of clients stable, improved, or in recovery while in current treatment (Target = 70%), and (3) Mental Health Centers - Youth Outcomes Questionnaire - Percent of clients stable, improved, or in recovery while in current treatment (Target = 70%) by January 1, 2016 to the Social Services Appropriations Subcommittee.


SB0007S01: Item 27

The Legislature intends that the Department of Human Services report on the following performance measures for the Substance Abuse and Mental Health line item: (1) Local Substance Abuse Services - Successful completion rate (Target = 40%), (2) Mental Health Services - Adult Outcomes Questionnaire - Percent of clients stable, improved, or in recovery while in current treatment (Target = 70%), and (3) Mental Health Centers - Youth Outcomes Questionnaire - Percent of clients stable, improved, or in recovery while in current treatment (Target = 70%) by January 1, 2016 to the Social Services Appropriations Subcommittee.


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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.