Barriers to Self-Sufficiency for Mental Health Centers

Federal funding of community mental health centers has been based on the "seed money" concept; the funds were to be gradually withdrawn as the centers became established and financially self-sufficient from other sources. The original legislation has been amended numerous times, extending and expanding the centers program and making it possible for some centers to receive federal funds over a period of 12 years. The author questions whether "seed money" is still a viable concept and whether self-sufficiency is a realistic or even a desirable goal for community mental health centers. He reviews the history of the centers legislation and studies of center funding sources, describes barriers encountered by the centers in obtaining third-party reimbursements, discusses several trends that appear to reduce the likelihood of center self-sufficiency, and suggests some approaches to meeting the financial needs of the centers.