Bill prevents suit against DSHS
Tucked in a Senate bill on mental health is a provision that could cost Spokane County $2.6 million, according to county officials.
The legislation could prevent the county from suing the state Department of Social and Health Services, which oversees the state’s 13 mental health systems, according to Jim Emacio, the county’s chief civil attorney.
“It appears that legislatively, they are trying to cut off the rights of various counties to sue as Pierce County did,” Emacio said.
Last year, Pierce County sued the department for fining the county for hospitalizing too many psychiatric patients at state institutions. Spokane County, which had been fined more than any other county in Washington, has followed Pierce County’s lead, asking the state to return more than $2.6 million in fines.
But Senate Bill 6793 would block lawsuits against the state in the case. The legislation says that local public mental health systems have “no claim for declaratory relief, injunctive relief, administrative review, civil liability or other relief against the state.”
Jim Stevenson, communications director for the state’s Mental Health Division, said his department did not suggest the language in the provision.
Sen. James Hargrove, chairman of the Senate Human Services and Corrections Committee, did not return a phone call seeking comment.
County Commissioner Mark Richard said he had assumed that DSHS had added the provision to the legislation.
“Who else is a benefactor?” Richard asked. “They are trying to tag it onto an otherwise popular bill. It’s got us in quite a quandary.”
In 2003, state officials began penalizing regional mental health systems for sending too many patients to state psychiatric hospitals. A state formula established how many patients each region could send to the hospital.
In meetings with legislators this session, the state estimated that it is liable for $20 million statewide if sued by the counties over the penalties, according to Doug Porter, director of DSHS’ Medicaid programs.
Rather than allow the lawsuit to continue, legislators may provide $20 million to the state agency to disperse to individual counties, Porter said. That payment is likely to be contentious, as Spokane and King counties both felt slighted by allotments last spring.
“I think the funding will be dispersed based on need,” Porter said. “It will be as fair and as equitable as possible.”
Commissioners plan to sign a resolution today authorizing Spokane County to sue the state.
Pierce and Spokane counties, where the state’s two psychiatric hospitals are located, have objected to the state’s formula, arguing that it does not take into consideration that patients may remain in the area after being released from the hospitals – leading to higher concentrations of people with mental illness.
In October, a Superior Court judge in Thurston County called the state’s fines “invalid and unenforceable” and ordered the state to return $2 million to Pierce County.
Last month, the state paid Pierce County $1.8 million as part of its settlement of the lawsuit, only to appeal the case this month. If the state wins the appeal, Pierce County must return the money, Stevenson said, but in the meantime it prevents further interest from accruing.
The fines – known as liquidated damages – have been a drain on Spokane County’s mental health system, amounting to as much as $150,000 a month in penalties.