State opens fourth probe into mental health finances amid funding request

A fourth investigation is now underway into the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS), as state officials prepare to hold a public hearing with the agency’s commissioner on Thursday. The hearing comes after Commissioner Allie Friesen submitted a letter to lawmakers acknowledging financial issues within the department, which she attributed to previous leadership.

The agency has requested an additional $6.2 million in funding to remain operational through the end of June.

Confusion Over Mental Health Provider Contracts

Earlier this month, several Tulsa County mental health providers—including Grand Mental Health, CREOKS, and Family and Children’s Services—received state-issued contract termination notices, prompting widespread concern and confusion. Lawmakers later confirmed that the notices were sent in error by the Office of Management and Enterprise Services. Commissioner Friesen assured stakeholders that the state has no plans to terminate core mental health services.

Despite the chaos, provider leaders emphasized that their services would continue uninterrupted. Grand Mental Health, which serves over 50,000 individuals each month, said it was "business as usual," though leadership remained in communication with the state to resolve the situation. CREOKS similarly reiterated its commitment to serving clients without disruption.

OMES and ODMHSAS are now working on a contractual stopgap to stabilize the situation while long-term agreements are negotiated before the fiscal year ends.

Read more: Tulsa leaders say termination notices sent to mental health providers were a 'mistake' amid funding concerns

Governor Defends Vendor Realignment, Denies Mental Health Budget Cuts

Governor Kevin Stitt has pushed back on claims that the state is cutting mental health funding. In a recent press briefing, Stitt stated that Oklahoma's mental health budget remains unchanged at approximately $800 million annually. He clarified that the state is shifting funds from underperforming or expensive vendors to more efficient providers in order to expand access and improve outcomes.

Stitt also criticized vendors for spreading misinformation to the public and the press, noting that many of the reported "cuts" relate to removed discretionary bonuses, not to reductions in service contracts. He emphasized that these realignments are designed to ensure tax dollars are used efficiently, citing discrepancies in billing rates among providers.

The governor encouraged Oklahomans to “do your homework” and not be misled by alarmist narratives. “We’re trying to serve more Oklahomans better,” he said.

Read more: Gov. Stitt pushes back on mental health cut claims, defends shift in vendor contracts