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State readies to award $100M to hospitals for behavioral health teaching programs

by Christine Sexton, Florida Phoenix

February 12, 2025

To bolster the health care workforce and improve access to mental health treatment, the Legislature last year agreed to establish behavioral health teaching hospitals and appropriated $100 million in the state fiscal year 2024-25 budget for grants to fortify their efforts.

A top official at the Agency for HealthCare Administration (AHCA) told members of the Senate Health Policy Committee Wednesday that Tampa General Hospital, UF Health Shands Hospital, UF Health Jacksonville, and Jackson Memorial Hospital, which submitted grant applications for $100 million in behavioral health teaching funds, should hear from the state soon about how much money to expect.

AHCA Deputy Secretary Health Quality Assurance Kim Smoak said the agency is working with the Department of Children and Families (DCF) and reviewing the grant applications the hospitals submitted late last year per the deadlines in the 2024 law (SB 330).

She said that AHCA will make its recommendations to legislative leaders on how the money should be awarded by March 1. She also noted it’s the Legislature and not the agency that will appropriate the funds.

Revert and reappropriate

State Sen. Gayle Harrell chaired the Appropriations Committee on Health and Human Services when the Senate was crafting the bill and the state budget needed to implement the grant programs. 

Harrell, a Republican from Stuart, expressed concern that the state wouldn’t be able to move the money to the facilities and have the hospitals fully spend it by June 30, when the current budget expires.

“I think we need to anticipate perhaps reverting and reappropriating,” Harrell said.

But Smoak stressed that the law lays out the grant application process, including the deadlines, not the agency. The law requires the state to open up the funding opportunity on Nov. 1 and allow the facilities 30 days to submit their detailed grant applications.

AHCA is required in statute to evaluate the applications with DCF and submit recommendations on how the grants should be awarded within 90 days.

“We have met all of our time frames. The last timeframe for the agency is the March 1 deadline and we will meet that March 1 deadline,” she said, adding she’d get back with Harrell as to whether the full $100 million will be spent.

State Sen. Colleen Burton via: Florida Senate

Senate Health Policy Committee Chair Colleen Burton, a Republican from Lakeland, also touched on the timing of the funding and whether the hospitals will see the money soon.

“Within a few months, you could effectively pay them?” Burton asked.

Smoak again said the law requires the agencies to review the plan and submit recommendations to the Legislature by March 1.

“Again, March 1 is the timeframe for us to submit our recommendations to the House and Senate. And we will meet that timeframe.”

Burton replied: “I know you will,” Burton said. “I have absolutely no doubt.”

Larkin Community Hospital, HCA Florida Aventura Hospital, and St. Joseph’s Hospital notified the state of their intent to apply for the funds next year.

The four hospitals were named behavioral health teaching hospitals in the legislation, making them eligible for the funding. According to the legislation, the grant funds can be used for operations and expenses and for “fixed capital outlay,” such as facility renovation and upgrades. 

The bill, sponsored by Sen. Jim Boyd, also created a pathway for other facilities to be designated as behavioral health teaching hospitals beginning July 1, 2025, making them eligible for a second and third round of grant funding.

To be designated behavioral health teaching hospitals, the facilities meet criteria laid out in the bill. For instance, they must agree on an affiliation with a state university with a Florida-based medical school. The hospital must agree to help train students in the entire continuum of behavioral health care services, from screenings to crisis stabilization to long term care.

The hospitals also must agree to contract with the state to provide access to treatment beds when necessary.

In order to qualify for the FY 25-26  grant opportunities, though, the facilities were also required to submit a letter of intent to the state by Jan. 1. 

The deadlines for the second and third grant applications allow for a little more time. The applications are due by Oct. 1 of each state fiscal year. Similar to the first round of grants, the state is required to keep the funding opportunity open for 30 days and to review the applications with DCF and make recommendations to the Legislature 90 days thereafter.

Smoak testified that three facilities had submitted the requisite notice of intent with the state by the deadline. In a follow up request for information, the Florida Phoenix learned the facilities are Larkin Community Hospital, HCA Florida Aventura Hospital, and St. Joseph’s Hospital.

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