19-05-2025
Oklahoma mental health agency must mitigate risks to patients as deficit grows to $30M
Oklahoma Department of Mental Health Commissioner Allie Friesen speaks to news reporters after a Contingency Review Board meeting Oct. 8, 2024, at the state Capitol. (Photo by Emma Murphy/Oklahoma Voice)
OKLAHOMA CITY — The state's mental health agency faces billing errors, fraud and information technology vulnerabilities in delivering services, an initial financial examination found.
Over the next 18 months, the Oklahoma Department of Mental Health and Substance Abuse Services must implement dozens of changes to protect its patients and billing integrity, the review said.
The agency must also prioritize hiring a chief financial officer and internal auditor with deep public sector experience, according to the initial findings released by David Greenwell.
Greenwell, a certified public accountant, was retained by Gov. Kevin Stitt to oversee the department's finances and examine the reasons for the financial disarray plaguing the agency that has resulted in contracts being cut or canceled and concerns that the agency can't afford to pay 2,000 employees.
Greenwell's findings also show that the agency now needs nearly $30 million in emergency funding from the Legislature to pay its bills. That's about $2.6 million more than had been previously projected last week by Greenwell and Aaron Morris, state's chief financial officer.
In the report first released Monday by Stitt, Greenwell wrote Thursday that he'd reached his latest estimate by examining the agency's actual expenditures and revenues through May 11, and his number 'reflects a best-effort projection' using historical data and trend analysis.
But he said he's also made 52 recommendations that the agency must take to mitigate risks. Key priorities include updating the agency's ethical code, adopting modern accounting systems and standardizing reimbursement processes.
'These changes will improve patient care by ensuring funds are used effectively, aligning with Oklahoma's mental health priorities,' Greenwell wrote.
He said the agency must strengthen its internal controls over financial reporting.
His recommendations anticipate 'improving accuracy, compliance, and accountability in managing mental health services across state-owned and private facilities.' Implementation should be phased in over 18 months with some goals quickly achievable, including enhanced training to create a culture of ethical conduct and accountability, he said.
Greenwell said in a statement that nothing about the mental health department 'is permanently broken,' and by making 'intentional adjustments to procedures,' the agency will get back to business.
Stitt said that the report 'is the signal for a new beginning for the department.'
'No one signs up for a job like this thinking they'll have to take on decades of financial mismanagement. Commissioner (Allie) Friesen has navigated this challenge admirably and has kept me and my team informed every step of the way,' he said in a statement. 'Oklahomans will be better off now that we have a handle on this department.'
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