(Salem – January 11, 2024) Oregon’s Behavioral Health and Medicaid programs will become separate divisions in a new organizational structure at the Oregon Health Authority (OHA), which Interim Director David Baden announced in a message to OHA staff today. Medicaid and Behavioral Health have been part of a larger Health Systems Division (HSD) since 2016.
A transition will begin this month. State health officials expect to conclude the process in April 2024. Once the change is completed, the Health Systems Division will be dissolved, and its current shared functions will be allocated to the two new divisions.
The changes will help ensure that OHA can fulfill its mission, eliminate health inequities and tackle the most important challenges facing Oregon communities. The new structure will enable the Medicaid and Behavioral Health divisions to allocate funding and regulate programs in more responsive and effective ways.
Interim Director Baden said, “OHA’s Medicaid and Behavioral Health teams are responsible for some of the highest priority programs and initiatives for our agency. To succeed, Medicaid and Behavioral Health need an organizational structure that enables their teams to be nimbler, and more efficient to meet the expectations of policymakers, partners and the public.”
State health officials said that there will be no reductions in staffing due to the changes.
Oregon’s Medicaid program provides medical, behavioral health and dental coverage to more than 1.4 million income-eligible children and adults in Oregon, through the Oregon Health Plan (OHP). The Medicaid budget is $26.3 billion for the 2023-2025 biennium, which is funded through a combination of federal and state funds (currently, the federal government contributes approximately two-thirds of the funds for Oregon’s Medicaid program). The new Medicaid division will continue to be led by Vivian Levy, the state’s Interim Medicaid Director.
Oregon’s Behavioral Health program funds, regulates and administers mental health and substance use services programs for community members who do not qualify for Medicaid coverage. The 2023-2025 budget for behavioral health is $1.3 billion. Ebony Clarke, the state’s behavioral health director, will continue to lead the new Behavioral Health Division.
Once the transition is complete, current Health Systems Division Interim Director Shawna McDermott will take on a senior role in Medicaid.
Interim Director Baden emphasized that the Medicaid and Behavioral Health divisions will continue to work closely together.
“Medicaid and Behavioral Health programs will stand on their own as separate – but not siloed – OHA divisions,” said Baden. “As we navigate this change, we will sustain and enhance collaboration across Medicaid and Behavioral Health teams to improve equitable care coordination and health outcomes for people across the state. We cannot afford anything less. Nor can the people we serve.”