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Michigan Health Policy Conference 2026: Medicaid, OBBBA, and State Budget Impacts

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Michigan is preparing for significant Medicaid and budget changes under the 2025 federal budget reconciliation law (P.L. 119-21, OBBBA), with more than 200,000 residents at risk of losing healthcare coverage. At the 2026 Michigan State of Reform Conference, state leaders and stakeholders highlighted implementation challenges, fiscal pressures, and strategies to maintain access to care. 

On May 5, 2026, State of Reform (SOR), an HMA Company, hosted its annual Michigan health policy conference, bringing together over 200 interest-holders, including providers, policymakers, and community-based organizations to examine how Michigan is adapting to rapid change and implementing new federal requirements.

The conference fostered candid discussion of the implications of the 2025 federal budget reconciliation act (P.L 119-21, OBBBA), with a particular focus on community engagement requirements, behavioral health, Michigan’s budget outlook, and the Rural Health Transformation Program (RHTP). 

Michigan DHHS’s Top Health Policy Priorities in 2026 

The day opened with a presentation from Meghan Groen, Chief Deputy Director of the Michigan Department of Health and Human Services (DHHS). Ms. Groen shared her department’s priorities and strategies, including implementation of OBBBA requirements and RHTP.  

Medicaid community engagement requirements and six-month eligibility redeterminations are the most immediate operational challenges for DHHS. Michigan also is advancing a set of readiness activities, including internal assessments, coordinated planning, leadership alignment, and regular communication with the Centers for Medicare & Medicaid Services (CMS). 

Another top priority Ms. Groen identified was expanded access to behavioral health. In a discussion focused on programmatic changes in behavioral health, panelists discussed how Michigan is using multiple tools, including Certified Community Behavioral Health Centers (CCBHCs), crisis stabilization units, and psychiatric residential treatment facilities (PRTFs), to address access gaps. Panelists Kristen Morningstar, Director of Michigan’s Bureau of Specialty Behavioral Health Services and Robert Sheehan, Chief Executive Officer, Community Mental Health Association of Michigan, shared how DHHS continues to collaborate with behavioral health providers to optimize service delivery and better meet member needs. 

How OBBBA Will Affect Michigan Medicaid Coverage and the State Budget 

Across sessions, speakers—including Danielle Devine, Market President at McLaren Health Plan, and Jen Flood, Budget Director for the State of Michigan—highlighted how OBBBA is already reshaping Michigan’s Medicaid program and broader fiscal outlook. These changes have direct implications for Medicaid financing and long-term planning and are a driver for the state’s $1 billion budget shortfall. Significantly, Michigan Gov. Gretchen Whitmer has recommended approximately $800 million in new taxes from tobacco and vaping to supplement the budget. The governor has also formed a working group of hospitals, health plans, providers, and other stakeholders to identify options for saving $150 million. 

DHHS projects that more than 200,000 individuals in Michigan are at risk of losing Medicaid coverage. Panelists discussed the downstream effects, including disruptions in care, a rising rate of uninsured residents, and increased financial strain on families and providers. Stakeholders shared concerns about increases in uncompensated care, food insecurity, and household debt. 

Panelists emphasized that navigating this environment will require close collaboration across the delivery system. 

How Michigan Is Using the Rural Health Transformation Program 

Amid the broader changes in the healthcare landscape, RHTP is emerging as a key strategy for sustaining and strengthening access to care in Michigan’s rural communities. Speakers such as Lauren LaPine-Ray, DrPH, MPH, Vice President, Policy & Rural Health at the Michigan Health & Hospital Association, emphasized the importance of aligning financing strategies, partnerships, and policy levers to optimize the impact of these investments. Michigan has already awarded RHTP funding to multiple entities to support implementation at the local level. 

Looking Ahead 

The challenges that Michigan is facing are not unique, and the need for shared insight and practical solutions is only growing. 

If you are looking for strategies and solutions to address urgent healthcare policy and operational challenges, HMA experts are available to help navigate these complex changes and identify practical paths forward. 

Health Management Associates (HMA), State of Reform brings together state leaders, providers, plans, and community organizations to surface real-world strategies for navigating federal change. Join us in Baltimore, MD, on May 21, 2026, or visit the SOR website to view the full conference schedule and register for an upcoming event. 

State of Reform develops its conference agendas through collaboration with HMA subject matter experts/market leads and stakeholders across the public and private sectors, including state officials, community-based organizers, providers, payers, and more. 

National Collaborative Launched to Strengthen US Behavioral Health Crisis System

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National Alliance on Mental Illness (NAMI) and Health Management Associates (HMA) launch the National Collaborative for Crisis Systems Innovation 

The United States is facing an escalating behavioral health crisis, with growing demand for mental health and substance use services and persistent gaps in access to timely, appropriate care. In response, the National Alliance on Mental Illness (NAMI) and Health Management Associates (HMA) have launched the National Collaborative for Crisis Systems Innovation, a new initiative focused on improving how the United States responds to people in mental health crisis

This collaborative effort comes at a critical moment for the national crisis response system, as policymakers, providers, and communities work to build on recent investments and make further progress on sustainable, systemwide changes so that people experiencing a mental health crisis receive the care they need and deserve. 

The Crisis Response System Still Needs Improvement 

The launch of the 988 Suicide & Crisis Lifeline in 2022 marked a major milestone, making it easier for individuals to access immediate behavioral health support. Although the 988 Suicide & Crisis Lifeline has driven recent progress, significant challenges remain in the US mental health crisis system, including: 

  • Rising demand for crisis services 
  • Limited access to community-based behavioral health services 
  • Fragmentation across crisis responses systems 
  • Overreliance on emergency departments and law enforcement 

Experts increasingly agree that 988 is only one component of a comprehensive crisis system. Effective systems must also include: 

  • Mobile crisis response teams 
  • Crisis stabilization facilities 
  • Ongoing care coordination and follow-up services 

The National Collaborative represents the next phase of work and will focus on connecting these pieces into a more integrated and sustainable system. 

The National Collaborative Is a New Phase of Crisis System Transformation 

Building on four years of foundational work since the 988 Suicide & Crisis Lifeline launched in 2022, the National Collaborative is designed to strengthen the full continuum of behavioral health crisis care, from initial contact to stabilization and follow-up services. 

Its overarching goal is to ensure that individuals experiencing a mental health crisis receive timely, appropriate care rooted in dignity and support. The National Collaborative will: 

  • Serve as a nationwide hub for coordination, learning, and action 
  • Bring together public and private stakeholders across sectors 
  • Support states and communities in building coordinated, person-centered crisis response systems 
  • Advance innovation and shared solutions to improve outcomes 

The launch of this collaborative also reflects a broader shift in national focus—from expanding access to improving system performance and long-term sustainability. This approach recognizes that meaningful progress will require coordination across healthcare, social services, and community-based organizations. 

Why This Matters 

For state Medicaid agencies, health plans, and providers, the collaborative provides a platform to: 

  • Learn from peers across states and sectors 
  • Access emerging policy and implementation insights 
  • Align local strategies with national priorities in crisis care 

As crisis system transformation accelerates, coordinated efforts like this one will be essential to sustain momentum and improve outcomes. 

In the coming months, NAMI and HMA will engage key interest-holders and experts to identify and elevate the urgent needs in crisis response and ensure alignment on shared outcomes to improve crisis systems. Public and private organizations interested in improving behavioral health crisis systems are encouraged to engage with the National Collaborative for Crisis Systems Innovation

For more information on HMA’s work in Crisis services, contact Monica Johnson, Managing Director, HMA. 

Special Alert: CMS Proposes Major Medicaid Payment Reform to Cap State-Directed Payments and Align Rates with Medicare

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On May 20, the Centers for Medicare and Medicaid Services (CMS) announced a proposed rule aimed at curbing state Medicaid payment practices that federal regulators have driven excessive federal spending without clear improvements in care. The rule, which implements new statutory requirements approved as part of the 2025 budget reconciliation act (P.L. 119-21, OBBBA) proposes to cap certain state-directed and targeted provider payments and is seeking to better align them with Medicare payment levels. These financial arrangements include healthcare related provider taxes and intergovernmental transfers.

If finalized, CMS projects the rule will result in significant federal savings over time and will refocus Medicaid funding on patient care, strengthen oversight, and ensure that supplemental payments are tied to measurable improvements in quality, access, and outcomes rather than financing strategies that increase costs without corresponding value. Health Management Associates (HMA) experts are continuing to review the proposed Medicaid payment reform and will provide additional analysis in future newsletters and communications to interest-holders.  

May 20, 2026

Special Alert: CMS Proposes Major Medicaid Payment Reform to Cap State-Directed Payments and Align Rates with Medicare

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Expanding School-Based Behavioral Health Access for Children

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Interagency Collaboration, Care Coordination, and Rural Implementation: Pediatric Healthcare Landscape Analysis and Blueprint

THE CLIENT

Glenn County Office of Education (GCOE) is a recipient of a Providing Access and Transforming Health (PATH) grant from California’s Department of Health Care Services to implement a Capacity and Infrastructure Transition, Expansion, and Development (CITED) initiative. As part of implementation, GCOE applied for technical assistance through the CalAIM TA Marketplace to strengthen Enhanced Care Management (ECM) partnerships that connect school-based and school-linked behavioral health (BH) supports with Medi-Cal and community services. The goal was to improve pediatric behavioral health access, care coordination, and closed-loop referral pathways across school districts, county agencies, and local clinical providers.

As schools increasingly serve as the venue where many children and families first access BH supports, this case study highlights how cross-sector partners can align roles and coordination practices so students experience timely referral and smooth handoffs to community-based and clinical services—especially in rural and smaller counties. This work is relevant to behavioral health professionals working in schools (school counselors, school psychologists, educational social workers, wellness staff), county and state agencies (behavioral health, public health, child welfare, probation, social services), and clinical settings (licensed providers, FQHCs, managed care) who are strengthening prevention, early intervention, and referral pathways for children, youth, and families ages 0–25.

BACKGROUND

Like many counties, Glenn needed to align multiple agencies and initiatives happening simultaneously. As schools increasingly serve as the primary access point for student mental health, BH prevention, and early intervention, improvement depended on stronger, more reliable connections between education and healthcare—including clear referral pathways within a multi-tiered system of supports (MTSS) and timely linkage to community-based treatment.

“Health Management Associates has been an exceptional technical assistance partner throughout this project. Their team consistently exceeded expectations by accurately assessing our agency’s baseline needs alongside those of key community partners, facilitating meetings ahead of schedule to maintain momentum, and developing targeted prompts that strengthened both macro- and microsystem design efforts. 

What has stood out most is HMA’s ability to create structured, collaborative planning processes that increase engagement and accountability across stakeholders. Their facilitation style helped move our organization from early exploration into actionable system design while ensuring partners had the time and support needed to provide meaningful input. We highly recommend Health Management Associates as a trusted and highly effective TA Marketplace vendor.”

Christine Taylor
Educational Administrator
Glenn County, CA

County offices of education can play an important and catalytic role in linking education and healthcare because they are well positioned to convene cross-sector partners serving children, youth, and families. In Glenn County, multiple state-driven changes affecting child and youth BH increased the need for tight interagency collaboration and seamless transitions—so each partner could act clearly within its lane or locus of control. Improving BH access also required ecosystem-level change management. Partners needed shared governance and practical coordination infrastructure (e.g., decision forums, common workflows, and information-sharing practices) to support closed-loop referrals and smoother movement between school-based supports, clinical care, and community resources. Glenn’s rural context brought both constraints and advantages: workforce capacity was limited, but long-standing relationships meant partners often knew one another and could be motivated to coordinate.

APPROACH

HMA’s technical assistance focused on building countywide infrastructure for collaboration and care coordination across schools, agencies, and clinical providers. The work centered on three components:

  1. An assessment of ECM readiness to identify the key factors and challenges tied to improving BH access and care coordination across multiple public agencies, schools, and community-based organizations serving county children, youth, and families. 
  2. Provision of targeted training of direct service providers of ECM such as licensed clinicians, school counselors, educational social workers, Community Health Workers, and Certified Wellness Coaches.
  3. Facilitation of two in-person countywide convenings to advance interagency collaboration across ECM, Community Schools, and the Children and Youth Behavioral Health Initiative (CYBHI), with dedicated work time on referral systems and data sharing for care coordination and transitions.

Partners included county agencies (Education, Behavioral Health, Public Health, Probation, Child Welfare, and Social Services), health care organizations (managed care plans, FQHCs), and community-based organizations supporting children, youth, and families. This cross-sector collaboration supported a whole-child approach by aligning school-based services, youth mental health resources, and referral pathways across education, public systems, and clinical care.

RESULTS 

Convened a countywide ecosystem of agencies and organizations to align around shared goals for children, youth, and family well-being—creating a common operating picture across school, agency, and clinical settings. 

Established a collective impact model with the County Office of Education serving as backbone, leveraging its convening role to link education and healthcare partners across the county. 

Translated and aligned education and health care initiatives (CYBHI, Community Schools, ECM, and the Behavioral Health Services Act/BHSA) into clear roles, workflows, and decision points—supporting lane clarity and smoother transitions across agencies and sectors. 

Accelerated design of standardized referral forms, closed-loop protocols, and data/information-sharing agreements—foundational infrastructure to simplify care coordination and reduce handoff failures for children and youth moving between school, clinic, and community supports. 

Strengthened ecosystem-level change management by identifying governance touchpoints and coordination infrastructure that can be maintained in rural contexts—supporting ongoing role clarity, continuous improvement, and consistent transitions for children, youth, and families. 

Identified 2–3 near-term projects to “practice” new interagency coordination behaviors, paired with governance forums to sustain collaboration and continuous improvement.

Takeaway for practitioners: When schools are a primary access point for prevention and early intervention, sustainable improvement depends on ecosystem-level change management—shared governance, clarified roles, integrated behavioral health workflows, and coordination infrastructure (including closed-loop referral and interoperable data/information-sharing practices) that helps students and families move seamlessly between school-based supports, specialty BH care, and community youth mental health services.

HMA brings together nationally recognized expertise in pediatric behavioral health, hospital-based mental health integration, and public-sector policy and operations. Our clients serve rural and frontier communities, including state and local governments, health systems, federally qualified health centers, tribal organizations, providers of every specialty, and community-based groups

Contact our experts to learn more about how HMA can help your organization.

The Pediatric Behavioral Health Service Continuum in New Orleans

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Landscape Assessment and Gap Analysis of School-Based Primary Care and Behavioral Health for Medicaid-Eligible Youth Pediatric Healthcare Landscape Analysis and Blueprint

THE CLIENT

The client team is a coalition including a group of local and national funders seeking city-level solutions to address gaps in youth behavioral health services, a non-profit educational “quarterback” organization supporting New Orleans schools as they respond to students’ primary and behavioral health needs, and a children’s hospital with a robust, grant-funded school-based primary and behavioral health program exploring where it could uniquely expand impact.

Together, the partners set out to identify system-level opportunities for aligned funding, reduce the extent to which school-based staff are asked to take on additional care coordination work, and expand access for children and families to school-based primary and behavioral health services as well as community- and facility-based behavioral health services. The work focused on strengthening school-based mental health and integrated care pathways for Medicaid-eligible children and adolescents across the full pediatric behavioral health continuum.

BACKGROUND

In New Orleans, youth behavioral health and pediatric mental health needs were becoming more urgent, but the system designed to respond remained fragmented across schools, community providers, hospitals, and public agencies. School leaders and clinicians described referral pathways that were inconsistent and difficult to navigate, limited visibility into where services existed, and few shared accountability mechanisms across sectors—creating gaps in care coordination, crisis response, and follow-up. This made it difficult for stakeholders to coordinate strategy, align resources, or plan for scale.

In parallel, Manning Family Children’s Hospital and its ThriveKids student wellness initiative saw a significant opportunity to expand school based physical and behavioral health services across New Orleans Public Schools. 

School teams were increasingly operating as de facto care coordinators, triaging crises, managing referrals, and filling behavioral health gaps they were not equipped or designed to address. Stakeholders saw school-based health clinics and school-based health centers as a meaningful opportunity to close gaps in behavioral health screening and response, strengthen connections to primary and behavioral health care, and provide care navigation for students and families—including trauma-informed supports, universal screening, warm handoffs, and alignment with multi-tiered systems of support (MTSS).

This project brought together multiple stakeholders—including philanthropy, education, hospitals, and non-profits—to fund and lay the foundation for a shared view of need and opportunity. Because HMA has credibility across these sectors, we were able to support cross-sector collaboration and create a common fact base to guide investment decisions. Partners also recognized a specific local imperative: Medicaid-eligible youth and public school students needed better access to coordinated primary and behavioral health care, and the community needed a neutral, trusted convening entity to provide backbone coordination and accountability mechanisms.

APPROACH

HMA applied a mixed-methods, system-level approach to understand both the supply of services and the lived experience of accessing care. This behavioral health needs assessment combined service mapping, Medicaid data analytics, and stakeholder input to evaluate the continuum of care—from prevention and early intervention to crisis stabilization, day treatment, and residential treatment. This included: 

Quantitative analysis of Medicaid utilization data to assess service reach, gaps, and demand across the pediatric behavioral health continuum 

Survey of school-based and community-based services, including primary care, behavioral health, and higher-acuity treatment options 

Stakeholder engagement through 20+ interviews, focus groups, and surveys of school staff and providers to capture real-world barriers and system dynamics 

Gap analysis using national benchmarks to estimate unmet need and quantify where the system falls short 

Feasibility and opportunity assessment, evaluating not just need, but financial viability, workforce constraints, and implementation pathways

HMA used a unique approach for this analysis. in the absence of extensive utilization data and services, HMA used the Academy of Child and Adolescent Psychiatry’s framework for the continuum of pediatric behavioral health services as a standard. We cross-referenced this with New Orleans population and Medicaid enrollment data and national utilization data to estimate how many children in New Orleans would be expected to participate in each service on the continuum and assessed the feasibility of launching or expanding each service based on an assessment of the regulatory landscape, viable revenue sources, and projected demand for each service. 

We then translated these findings into a practical, phased roadmap, grounded in local context and designed to align funders, providers, and schools around a shared strategy.

RESULTS

This effort provided the first-ever integrated view of the pediatric behavioral health system in New Orleans, spanning school-based health centers/clinics, community providers, and facility-based care—and translating findings into practical options to improve access, care navigation, and crisis stabilization for Medicaid-eligible youth. 

For behavioral health professionals working in schools, state agencies, and clinical settings, the assessment produced an actionable picture of where the system breaks down—and where investments and operational changes can measurably improve access and outcomes for Medicaid-eligible youth and public school students. Only ~2% of Medicaid-eligible youth are currently receiving school-based behavioral health services. 

Clarified the role schools are being asked to play in a fragmented system—often functioning as care coordinators and first responders to behavioral health need—strengthening the case for school-based health clinics/centers with standardized screening, warm handoffs, and care navigation supports. 

Documented drivers of avoidable acute-care utilization, including gaps in community-based care: an insufficient number of providers willing to accept Medicaid, limited availability of evidence-based treatment, and the absence of respite and crisis residences—factors that can push families toward emergency departments and inpatient settings. 

Balanced a community-first strategy with realistic capacity planning—identifying opportunities to mitigate the need for some facility-based services by strengthening community-based behavioral health, while also underscoring the continued need for day and residential treatment facilities to address behavioral health and substance use needs when higher levels of care are clinically indicated. 

Elevated the need for intermediary coordination to reduce silos and improve accountability across healthcare and education. The work provided a concrete rationale and initial design considerations for a neutral, trusted convening entity to coordinate primary and behavioral healthcare for Medicaid-eligible youth and public school students in New Orleans—an increasingly important model for cross-sector collaboration that has been difficult to implement effectively in practice.

Overall, the work supports a scalable model for integrated school-based behavioral health, Medicaid-aligned financing, and cross-sector care coordination—helping communities strengthen prevention, early intervention, and access to the right level of treatment.

Importantly, HMA’s work does not stop at identifying gaps—we help clients prioritize investments, structure partnerships, and build the infrastructure needed for long-term system transformation. HMA can help organizations implement this kind of organizational change, by bringings a unique combination of: 

Deep expertise in Medicaid, behavioral health systems, and school-based care, enabling rigorous analysis of both financing and service delivery 

Proven ability to integrate quantitative data with stakeholder insight, ensuring recommendations reflect both system realities and lived experience 

Experience designing and implementing system-level solutions, not just conducting assessments 

Cross-sector credibility, allowing HMA to convene and align funders, healthcare providers, educators, and public agencies 

Practical, implementation-focused approach, translating complex findings into actionable strategies that are financially and operationally viable 

Contact us to learn more.

From Policy to Practice: Exploring CMMI Value Based Care Initiatives and Unlocking Value in Safety-Net Care

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CMS, through CMMI, has multiple new models focusing on value based care, continuing to push the envelope towards improving care through their programs. In this webinar, experts will examine how organizations are able to seize opportunities through operationalizing these models and what it means for safety net providers, health systems, and community-based organizations. The discussion will focus on practical insights, emerging challenges, and strategic opportunities to drive impact and sustainability under new models.

Learning Objectives:

  • Understand recent and emerging CMMI models, including its policy intent, structure, and implications for Medicare beneficiaries and safety net providers
  • Examine and gain insights from organizations implementing CMMI aligned models of care, including care model design, infrastructure, and partnerships
  • Identify strategic opportunities for health systems, ACOs, and community-based providers to maximize impact and sustainability

Featured Speakers:

Royal Tuthill, SVP of Networks Pair Team

Lance Donkerbrook, ACO Executive Director P3 Health Partners

Turning Insight into Action: The New Operating Reality in Behavioral Health

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Thousands of behavioral health leaders, clinicians, advocates, and industry partners convened during NatCon 2026, April 27–29 in Denver, CO—one of the sector’s largest annual gatherings. This year, the event was more focused and pragmatic than in recent years. Although behavioral health providers still face significant pressure, there was also a noticeable shift toward how organizations can move toward sustainable models for growth, technology adoption, and integrated care delivery.

Health Management Associates (HMA) colleagues attended the event to listen, connect, and contribute to the meaningful conversations. Many of the themes and industry trends we have been tracking emerged consistently throughout the conference. In this article, our behavioral health experts discuss their collective insights and the road ahead for behavioral health interest-holders.

Key Themes from NatCon 2026 

Financial resilience remained at the forefront.

Behavioral health organizations continue to respond to constrained funding conditions, evolving reimbursement dynamics, and the need to diversify revenue beyond unstable and uncertain grant support and rate reimbursement volatility.

Operational visibility was closely tied to financial resilience.

Leaders discussed the need for a clearer, more real-time understanding of their performance. Performance was considered broadly to include financial indicators, clinical outcomes, and workforce capacity. Data and measurement have moved from a “nice to have” to “essential” for effective engagement with payers.

Innovation conversations are shifting toward implementation.

Artificial intelligence (AI) and digital tools were still hot topics, but the discussion has moved toward implementation and effective deployment. Conversations centered on practical use cases such as clinical documentation support, measurement-based care linked to improved health outcomes, and better integration with electronic health records (EHR).

This year’s conference highlighted enduring opportunities and challenges for the field, including:

  • Core service priorities, such as crisis response, suicide prevention, collaborative care and increased opportunities around Certified Community Behavioral Health Clinics (CCHBCs), and value-based payment strategies for financial resilience 
  • Workforce sustainability, with organizations looking to reduce administrative burden, strengthen recruitment and retention, and support staff well-being while demand for services continues to rise

Behavioral Health Industry Trends

The industry trends emerging from NatCon 2026 suggest that behavioral health organizations are entering a more disciplined operating environment to maximize efficiencies and ensure long-term sustainability in what seems sometimes to be a chaotic environment. Organizations are placing greater emphasis on their Medicaid strategy, managed care contracting, and value-based arrangements that reward outcomes and continuity of care. There is also continued momentum behind integrated models that connect behavioral health with primary care, public health, and community-based supports. Rather than treating mental health and substance use services as isolated programs, providers are increasingly building coordinated systems that address whole-person needs across settings.

Another notable trend is that technology is becoming a clearer differentiator. Some organizations are piloting or scaling technology, while others are taking a more cautious approach. Discussions surrounding AI in particular appeared to have matured significantly, with attention moving from abstract concerns toward change management, sequencing of use cases, return on investment, governance, and clinician trust. In that sense, technology is moving from being a side initiative to a strategic differentiator.

Transformation in the Behavioral Health Field

We were struck by the level of alignment across different parts of the field. Many of the themes we heard reinforced what providers experience daily—the need to manage uncertainty while continuing to meet the growing demand for services and more intentional use of data, infrastructure, and outcomes measurement.

More broadly, the conversations throughout the conference pointed to a field that is moving toward greater pragmatism. There is still a clear need for additional resources, but there is also growing recognition that adaptability will serve an equally important role.

How We Can Help

One of the most valuable aspects of NatCon is the opportunity to compare experiences across organizations and regions. The themes emerging from this year’s conference reflect broader shifts happening across the behavioral health landscape. 

A key role of our team is to connect what we hear in different settings and share it in a way that is useful for others in the field—highlighting emerging approaches, surfacing common challenges, and creating opportunities for peer exchange.

For questions about the market dynamics or approaches to strengthen your organization’s adaptability,  contact one of our HMA experts.

Why Children’s Behavioral Health Demands Action Now

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Practical Strategies for Medicaid, Schools, Hospitals, and Communities

During Children’s Mental Health Awareness Week, May 3–9, and Mental Health Awareness Month, we are spotlighting actionable solutions across the US children’s behavioral health system. This post is intended for children’s behavioral health providers, state Medicaid agencies, school-based health centers, hospitals, local government agencies, local education agencies (LEAs), child welfare agencies, and philanthropic organizations that are working to strengthen prevention, crisis response, care coordination, and community-based continuums of care. HMA has a robust and growing team of behavioral health experts who support this work and have developed a series of case studies showcasing practical strategies implemented with clients—from crisis system design and referral pathway improvements to financing and implementation roadmaps.

Children’s Mental Health Awareness Week is a reminder that children’s behavioral health and youth mental health are not niche issues. They are systemic issues that require coordinated action across Medicaid, education, public health, hospitals and health systems, child welfare, and local government—especially where schools and community partners are on the front line.

The need remains substantial. The Centers for Disease Control and Prevention’s (CDC’s) 2023 Youth Risk Behavior Survey results, released in 2024, showed that 40% of high school students reported persistent feelings of sadness or hopelessness, even as some measures improved from 2021 levels. CDC also highlighted how bullying, safety concerns at school, racism, unfair discipline, and frequent social media use are tied to youth mental health risks.

The Substance Abuse and Mental Health Services Administration’s (SAMHSA’s) 2024 National Survey on Drug Use and Health, released in 2025, adds another important dimension. Among adolescents ages 12–17, the 2024 survey found that:

  • 15.4% experienced a major depressive episode within the past year
  • 10.1% had serious thoughts of suicide
  • About 40% who had a major depressive episode in the past year did not receive mental health treatment

The data show that progress is possible when systems respond with real capacity, access, and support. That is why this moment calls for more than awareness. It calls for action that is operational, financeable, and grounded in what works.

At HMA, we work with child-serving systems that are trying to solve real problems, including how to strengthen crisis response, improve referral pathways, build a more coherent continuum of care, and connect strategy with implementation.

Over the coming weeks, we will feature three examples that reflect different parts of the children’s behavioral health landscape.

1. Children’s hospital mental health strategy and crisis response

This case study will highlight work to help a children’s hospital strengthen its mental health approach and support next-stage crisis system design.

In this engagement, HMA partnered with Rady Children’s Hospital Orange County to move pediatric behavioral health from strategy to implementation—aligning emergency department (ED) mental health workflows, clarifying pediatric crisis pathways, building an investment-ready fiscal pro forma, and advancing priority programs to strengthen access and care coordination. This work can inform hospitals and health systems, Medicaid agencies, and community partners seeking to reduce ED boarding and improve pediatric crisis response.

2. County-level ecosystem and referral system improvement

This case study will show how local systems can bring multiple stakeholders together to improve referral pathways and make behavioral health more accessible for children, youth, and families.

HMA supported a county-led effort to strengthen cross-system referral pathways by aligning agencies around shared intake and triage practices, clearer roles and accountability, and more navigable access points for families. This approach is relevant for local government agencies, LEAs, school-based health centers, child welfare agencies, and community providers working to reduce fragmentation and speed connection to the right level of care.

3. Building a stronger children’s behavioral health continuum in New Orleans

This case study will focus on assessing gaps, identifying opportunities, and supporting a more coherent community-based continuum for children’s behavioral health.

HMA helped deliver the first integrated view of pediatric behavioral health in New Orleans, LA, aligning schools, healthcare, philanthropy, and government around a shared understanding of unmet needs and critical system gaps, as well as charting a prioritized roadmap to strengthen and better coordinate the continuum of care.

What It Means for Key Child-Serving Audiences

  • Children’s behavioral health providers: Prepare for stronger care coordination expectations (warm handoffs, follow-up after crisis, shared care plans) and increased demand for community-based alternatives to the ED
  • State Medicaid agencies: Focus on financeable crisis continuums (including pediatric crisis response), payment and contracting approaches that support access and continuity, and data/reporting that demonstrates outcomes
  • School-based health centers and LEAs: Strengthen referral pathways, clarify roles between schools and providers, and build protocols that support early identification while keeping students connected to safe learning environments
  • Hospitals and health systems: Improve pediatric ED mental health workflows, create clearer crisis pathways, and develop investment-ready business cases for behavioral health capacity and partnerships
  • Local government agencies: Convene cross-system partners, establish shared intake/triage and accountability, and use implementation roadmaps to move from planning to operational change
  • Child welfare agencies: Align behavioral health access for children and youth involved with child welfare, reduce handoff failures, and integrate crisis planning into placement stability and permanency strategies
  • Philanthropy: Target catalytic investments that fill continuum gaps, build capacity for implementation (not just planning), and support cross-system governance and measurement

The common thread among these examples is a simple belief: Children’s behavioral health improvement does not happen through aspiration alone. It happens when organizations and public systems translate urgency into design, partnerships, financing strategies, and implementation steps.

That is also why children’s behavioral health is so relevant. National data still point to high levels of distress and suicide risk among adolescents, despite recent improvements. CDC’s findings show how strongly youth mental health is shaped by the environments in which they live, learn, and play—especially their schools and communities.

For leaders in Medicaid, behavioral health, child welfare, education, county government, hospitals, and provider organizations, the question is not whether children’s behavioral health deserves attention, but rather is how to build systems that respond earlier, coordinate better, and support children and families more effectively.

We hope this series contributes to that conversation by sharing practical examples of work that can inform future action.

Other Resources on Children’s Behavioral Health and Youth Mental Health

Contact us to discuss how HMA can support your children’s behavioral health strategy—whether you work for a Medicaid agency, hospital/health system, school-based health partner, LEA, local government agency, child welfare agency, provider organization, or philanthropic funder. We can help with crisis continuum planning, care coordination design, referral pathway improvement, financing and pro forma development, and implementation support.

Children’s Behavioral Health Consulting

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HMA Solutions

Children’s Behavioral Health Consulting

Cross‑System Solutions for Schools, Health Systems, and State & Local Agencies

The US children’s behavioral health system is facing significant strains. Workforce shortages, fragmented funding and accountability, and rising demand are converging in the places where children spend time and receive care. Healthcare systems are seeing the impact in emergency departments and inpatient units, schools are expected to respond to student needs without sufficient capacity, and state and local agencies face pressure to align policy, financing, and programs across behavioral health, Medicaid, child welfare, and education.

How HMA Can Help

HMA partners with child-serving systems to translate urgency into practical, financeable, implementable improvements, strengthening the continuum from prevention and early intervention to crisis response and recovery. Examples of services we provide include:

Landscape assessments and needs analyses (qualitative and quantitative)

Stakeholder engagement and facilitated convenings (including family, youth, community, and cross-agency partners)

Gap analysis and service continuum design (school-, community-, and facility-based)

System and model redesign, including governance, referral pathways, and care coordination across settings

Strategic planning and implementation support (operational roadmaps, change management)

Regulatory and policy analysis to support compliant, scalable program models

Workforce strategy and provider training to build sustainable capacity

Financial modeling, including fiscal pro formas and revenue cycle considerations

Site assessments and facility studies to support service expansion and optimization

Who We Serve

We support providers, health systems, children’s hospitals, schools, school-based entities (including local education agencies [LEAs]), state and local government agencies and community-based partners working to improve children’s behavioral health.

Common Challenges

Fragmentation across child-serving systems,

Workforce shortages and training needs,

Misaligned financing and accountability, and

The operational challenge of coordinating care across school, community, and clinical settings.

Where We Help

Hospitals and Health Systems
Strengthen pediatric behavioral health strategy and operations—improving crisis pathways, clarifying roles across ED/inpatient/outpatient settings, and connecting clinical services to community and school-based partners

Schools, LEAs, and School-Based Entities
Build sustainable school mental health approaches—right-sizing service tiers, strengthening referral and care coordination, and aligning school-based services with Medicaid, community providers, and crisis systems

State and Local Government, Child-Serving Agencies, and Community-Based Partners
Advance cross-system solutions—aligning policy, financing, and accountability across behavioral health, Medicaid, child welfare, and education, while building implementable continuums of care that improve access and equity. 

HMA Differentiators

Cross-setting expertise. We work across schools, community-based systems, and healthcare delivery settings, helping partners design handoffs and shared accountability rather than isolated programs.

Implementation and financing. We connect strategy to operations and the realities of financing, reimbursement, and sustainability so plans can move toward successful implementation and delivery.

Multidisciplinary team. Our team includes clinicians, program administrators, researchers, and former state and local leaders with deep knowledge of children’s behavioral health ecosystems. Many of us are parents and grandparents ourselves who are passionate about and personally invested in this work.

Partnership-first approach. We bring a collaborative, community-grounded process that centers children, youth, and families and builds durable cross-sector relationships.

Local context, national perspective. We tailor solutions to market dynamics, resources, and policy environments while bringing lessons learned from diverse geographies and client types.

Other Resources

Blog

Why Children’s Behavioral Health Demands Action Now

Spotlight

Improving Youth Behavioral Health Through School-Based Initiatives

Spotlight

From Crisis to Coordinated Care: Six Behavioral Health Priorities for Hospitals and Health Systems

Let’s strengthen children’s behavioral health—together.

Whether you’re leading in a hospital or healthcare system, a school or LEA, or a state or local agency, we can help you align partners and build an implementable plan across the continuum of care.

Contact us to discuss your priorities and identify next steps.

Join us at HMA’s 2026 National Conference: Signals, Signs & Flashing Lights

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Registration is now open for the Health Management Associates (HMA) 2026 National Conference, US Healthcare 2026: Signals, Signs & Flashing Lights, October 5–7 in New Orleans, LA. 

HMA’s conference is intentionally structured to bring together leaders who are shaping decisions across sectors—those setting policy, managing risk, leading clinical operations, and innovating approaches to improve outcomes—to engage in candid conversations about what is working, what is not, and what is changing in Medicare, Medicaid, Marketplace and adjacent programs. In an environment defined by new challenges and “flashing lights,” even the most seasoned healthcare leaders will find value in stepping out of their day‑to‑day roles to compare strategies, test assumptions, and learn from peers facing similar pressures. 

This year’s conference is designed to reflect the environment healthcare leaders are navigating today—one defined less by policy certainty and more by shifting expectations and competing pressures on cost, access, and performance. Our experts are crafting discussions to address how organizations are approaching policy engagement in this environment, including new strategies for interpreting signals from federal and state policymakers and negotiating policy frameworks that directly shape market dynamics. 

Across plenary sessions, breakout discussions, and HMA’s signature coffee conversations, the conference will focus on how organizations are interpreting these signals and translating them into practical strategies. 

Programming will center on four cross-cutting themes shaping healthcare decision-making: 

  • Managing risk and cost amid continued financial pressure. Discussions will examine the drivers of utilization and affordability trends across Medicare, Medicaid, and commercial markets and which strategies are demonstrating measurable impact. 
  • Sustaining access and system stability. The agenda also will focus on how providers, health systems, and state programs are maintaining access amid workforce challenges, coverage transitions, and ongoing financial strain.
  • Turning innovation into impact. Sessions will explore where artificial intelligence (AI) and digital health tools are delivering measurable operational or clinical impact and what it takes to implement them effectively. 
  • Building partnerships that last. Conversation will highlight how stakeholders are aligning incentives, funding, and strategy to move from short-term responses to long-term, sustainable solutions. 

As in prior years, the HMA National Conference is structured to support candid dialogue, actionable takeaways, and meaningful connections. Attendees consistently highlight the opportunity to move beyond high-level trends and engage in practical discussions that inform decision-making in their organizations. 

Early-bird registration is now available for a limited time. The 2026 Sponsor Prospectus includes new opportunities for your organization. Additional agenda details, featured speakers, and interactive programming announcements will be released in the coming weeks. 

Ready to talk?