Program

Gross Appropriation

Appropriation Breakdown

State Psychiatric

$224,233,600[122]

$6,249,500 from Federal Funds;

Hospitals for Adults

$190,252,900 from GF/GP;

$27,731,200 from Special Revenue Funds

Program Description:

The state currently operates seven state psychiatric hospitals for adults:

  •  Caro Mental Health Center-Psychiatric Services Unit, which was established in 1913 and is housed in the Caro Regional Mental Health Center;

  • Clinton Valley Center, which occupies a 431-acre tract of land in Pontiac and was established in 1877 as the Eastern Michigan Asylum B the current name was adopted in 1972;

  • Detroit Psychiatric Institute (DPI), which was established in 1915 and is now housed in Detroit's Herman Kiefer Hospital; the state leases the property from the city of Detroit;

  • Kalamazoo Regional Psychiatric Hospital, which, established in 1859, is the oldest institution of its kind in the state;

  • Northville Psychiatric Hospital, which was established in 1952, and is located on 502 acres in northwest Wayne County;

  • Walter P. Reuther Psychiatric Hospital, which was purchased from Wayne County in 1979, and now operates as a special facility for the care of geriatric individuals; it is located in Westland; and

  •  Center for Forensic Psychiatry, which is located in Ann Arbor and was established in 1974 for the diagnosis, evaluation, and treatment of persons committed to the department by criminal courts.

Recommended Action:

In the past five fiscal years, the state has taken great strides to bring this section of the budget under control; it has closed five facilities that were simply no longer necessary: Coldwater, Lafayette, Newberry, TCRPH, and Ypsilanti. Yet, the remaining hospitals' budgets still remain tremendously bloated. While all of the seven remaining hospitals have experienced dramatic reductions in occupancy over the past several years, every one of them has received substantially greater funding.

For the years 1989 and 1995, the average occupancy for the seven facilities was as follows:

 

1989[123]

September 13, 1995[124]

Change

 

 

 

 

Caro

104

89

- 15

Clinton Valley

471

323

- 148

DPI

148

95

- 53

Kalamazoo

513

176

- 337

Northville

742

388

- 354

Reuther

272

190

- 82

Forensic

224

217

- 7

 

 

 

 

Total:

2474

1478

- 996

Thus, occupancy for the seven facilities dropped 40.3 percent during this period. Nevertheless, funding for these same hospitals increased from $146,707,800 to $224,233,600 during the same period, an increase of nearly 35 percent.[125]

To correct for this discrepancy, the state should retroactively index spending to occupancy and inflation, which was approximately 21 percent during this period. Thus, one would utilize the following formula: $146,707,800 * (1 + 0.21-0.403), which would yield a total of $118,393,190--thus producing a savings of $105,840,410 from the actual fiscal year 1995-96 appropriation of $224,233,600.

Program

Gross Appropriation

Appropriation Breakdown

State Psychiatric

$32,820,200[126]

$7,659,300 from Federal Funds;

Hospitals for Children

$21,350,200 from GF/GP;

and Adolescents

$3,810,700 from Special Revenue Funds

Program Description:

The state currently operates four state psychiatric hospitals for children and adolescents:

  •  Fairlawn Center, which was opened in 1967 and is housed at the Clinton Valley Center;

  • Hawthorn Center, which was opened in 1965 and is located in Northville;

  • Pheasant Ridge Center, which is now housed at the Kalamazoo Regional Psychiatric Hospital; and

  • Detroit Psychiatric Institute (DPI), which was established in 1915 and is now housed in Detroit's Herman Kiefer Hospital; the state leases the property from the city of Detroit.

Recommended Action:

In the past three fiscal years, the state has taken great strides to bring this section of the budget under control; it has closed three facilities that were simply no longer necessary--Engstrom, Lafayette, and York Woods--and it has announced that it plans to close Fairlawn in the near future. Yet, the remaining hospitals' budgets (including Fairlawn) still remain tremendously bloated. While all but one of the four remaining hospitals, DPI, have experienced reductions in occupancy over the past several years, the hospitals as a group have received substantially greater funding.

For the years 1989 and 1995, the average occupancy for the seven facilities was as follows:

Number of Patients

Facility

1989[127]

September 13, 1995[128]

Change

Fairlawn

117

26

- 91

Hawthorn

116

64

- 52

Pheasant Ridge

38

12

- 26

DPI

11

12

+ 1

Total:

282

114

- 168

Thus, occupancy for the seven facilities dropped 59.6 percent during this period. Nevertheless, funding for these same hospitals increased from $28,351,600 to $32,280,200 during the same period, an increase of over 12 percent.[129]

To correct for this discrepancy, the state should retroactively index spending to occupancy and inflation, which was approximately 21 percent during this period. Thus, one would utilize the following formula: $28,351,600 * (1 + 0.21-0.596), which would yield a total of $17,407,882--thus producing a savings of $15,412,320 from the actual fiscal year 1995-96 appropriation of $32,820,200.

Program

Gross Appropriation

Appropriation Breakdown

State Centers for Persons

$50,523,900[130]

$21,065,500 from Federal Funds;

With Developmental

$37,425,000 from GF/GP;

Disabilities

$3,621,300 from Special Revenue Funds

Program Description:

The state currently operates three state centers for persons with developmental disabilities:

  •  Caro Mental Health Center-Developmental Disabilities Unit, which is housed in the Caro Regional Mental Health Center;

  • Mount Pleasant Center; and

  • Southgate Center, which was opened in 1977.

Recommended Action:

In the past four fiscal years, the state has taken great strides to bring this section of the budget under control; it has closed three facilities that were no longer necessary: Muskegon, Newberry, and Oakdale. Yet, the remaining facilities' budgets still remain tremendously bloated. While all of the three remaining centers have experienced reductions in occupancy over the past several years, the centers as a group have received substantially greater funding.

For the years 1989 and 1995, the average occupancy for the three facilities was as follows:

Facility

1989[131]

September 13, 1995[132]

Change

 

 

 

 

Caro

264

102

- 162

Mount Pleasant

215

172

- 43

Southgate

174

127

- 47

 

 

 

 

Total

653[133]

401[134]

- 252

Thus, occupancy for the seven facilities dropped 38.6 percent during this period. Nevertheless, funding for these same hospitals increased from $37,425,000 to $50,523,900 during the same period, an increase of over 26 percent.[135]

To correct for this discrepancy, the state should retroactively index spending to occupancy and inflation, which was approximately 21 percent during this period. Thus, one would utilize the following formula: $37,425,000 * (1 + 0.21-0.386), which would yield a total of $30,838,200--thus producing a savings of $19,685,700 from the actual fiscal year 1995-96 appropriation of $50,523,900.