Arisa Health Ends 55‑Year Contract Over Funding Gap

Arisa Health, the nonprofit that runs community mental health centers across 41 Arkansas counties, has chosen not to bid for the upcoming state contract that will replace its current agreement. The decision follows a long‑standing battle against rising operating costs and dwindling public funding.

Why the Decision Matters

• Funding shortfall: The new contract would cut roughly $4.4 million from Arisa’s budget and offers no solutions for the agency’s key concerns.
• Reimbursement woes: Current rates are too low, and adjustments for inflation and population growth are insufficient.
• Workforce crisis: Wage increases needed to attract and retain mental‑health professionals are not covered, threatening staff retention.

Impact on Services

The clinics will continue to serve as central hubs for the 41 counties, but several locations are slated for closure.

Leadership’s Perspective

“Despite the funding shift, we remain committed to delivering high‑quality care for those who need it most,” said Arisa’s CEO.
“Our decisions protect our mission, staff, communities, and clients.”

Local Politics in Washington County

• Proposed ordinance: Would allocate county funds to pay Arisa for mental‑health services in a pretrial program aimed at reducing recidivism.
• Current status: Finance committee postponed the ordinance; no payments for 2026 have been made.
• Search for new provider: The county sheriff and detention center are actively seeking a replacement as Arisa steps back from these roles.

What Comes Next

• Arisa’s strategic focus: Tightening resources, prioritizing essential services, and exploring alternative funding sources.
• Community response: Stakeholders await the outcome of Washington County’s ordinance and potential new provider agreements.
• State oversight: The contract decision may prompt a review of mental‑health funding models across Arkansas.