NC Allocates $17M to Enhance Mental Health Services in Rural Areas

In a significant move to address mental health challenges in rural North Carolina, Governor Josh Stein and the state’s Department of Health and Human Services have allocated over $17 million to enhance mental health services through the Rural Health Transformation Program. This initiative aims to bridge the gap in healthcare access for the state’s rural communities.

“Every North Carolinian deserves the opportunity to live a healthy and fulfilling life,” declared Governor Josh Stein. “Nearly 1.5 million North Carolinians struggle with mental health issues, and too many people in rural areas cannot access the care they need. These investments will connect more families to high-quality care in their communities.”

The North Carolina Department of Health and Human Services (NCDHHS) has secured more than $213 million from the U.S. Centers for Medicare & Medicaid Services (CMS) for the 2026-27 fiscal year. These funds are part of a broader effort to improve health outcomes for over 3.5 million rural residents in the state. The Rural Health Transformation Program (NCRHTP) has prioritized the expansion of behavioral health care and substance use services as a focal point.

Investment Breakdown

The latest funding includes:

$4 million for Certified Community Behavioral Health Clinics

$3 million to expand Medications for Opioid Use Disorder Access

$4 million to expand Mobile Outreach, Response, Engagement, and Stabilization teams

$3 million for Coordinated Specialty Care for First-Episode Psychosis response

$2.9 million to establish regional Rural Crisis Partnerships

$800,000 to expand NC MATTERS

“There is no health without mental health,” stated NC Health and Human Services Secretary Dev Sangvai. “Our goal is to build a comprehensive system that delivers high-quality services to residents no matter where they live. These initiatives expand access to care and support whole-person well-being, directly advancing the NCDHHS mission to provide essential services that improve the health, safety, and well-being of all North Carolinians while developing a sustainable healthcare workforce for the future.”

Details of the Initiatives

The NCDHHS has allocated $4 million to three Local Management Entities/Managed Care Organizations for Certified Community Behavioral Health Clinics (CCBHCs). These clinics aim to provide comprehensive mental health and substance use care, serving over 21,000 people in 2024-25. The goal is to increase Medicaid recipients beginning mental health treatment by 5% annually and reduce emergency department visits for mental health needs by 8% to 10% each year.

To combat opioid addiction, $3 million will be utilized to expand Medications for Opioid Use Disorder (MOUD) access through the establishment of stationary medication units that integrate with primary care. This expansion is part of the MOUD Saturation plan, aiming to reduce opioid overdoses in emergency departments by 20% by 2031. The initiative includes the use of Zing Satellite Technology to enhance opioid treatment programs in several counties.

For children and adolescents, $4 million will be invested in Mobile Outreach, Response, Engagement, and Stabilization (MORES) teams, which serve youth aged 3 to 21. The program aims to reduce emergency department admissions and long-term placements by supporting families in their communities.

Additionally, $3 million will fund Coordinated Specialty Care for First Episode Psychosis (CSC), an early intervention for young individuals experiencing psychosis. The rural adaptation of CSC will integrate tele-psychiatry with community teams to minimize geographic barriers, with an aim to reduce emergency department stays for children by 8% to 10% annually through 2031.

The NCDHHS is also committing $2.9 million to create Rural Crisis Partnerships, ensuring proper care levels for individuals experiencing crisis and diverting them from unnecessary emergency department visits.

Lastly, $800,000 will support the expansion of the NC MATTERS program, which assists healthcare professionals in managing perinatal patients’ behavioral health needs in underserved rural areas.

These investments align with NCDHHS’s strategic focus on improving healthcare access, delivering quality services, and building a sustainable workforce to support all residents, especially those in rural areas. Learn more about the NCRHTP.