By Tony Leys, KFF Well being Information
SPENCER, Iowa — This city’s hospital is a holdout on behalf of individuals going by psychological well being crises. The ability’s leaders have pledged to not shutter their inpatient psychiatric unit, as dozens of different U.S. hospitals have.
Maintaining that promise may quickly get more durable if Congress slashes Medicaid funding. The joint federal-state well being program covers an unusually massive share of psychological well being sufferers, and hospital trade leaders say spending cuts may speed up a decades-long wave of psychiatric unit closures.
Not less than eight different Iowa hospitals have stopped providing inpatient psychological well being care since 2007, forcing individuals in disaster to hunt assist in distant amenities. Spencer Hospital is likely one of the smallest in Iowa nonetheless providing the service.
CEO Brenda Tiefenthaler stated 40% of her hospital’s psychiatric inpatients are coated by Medicaid, in contrast with about 12% of all inpatients. A further 10% of the hospital’s psychiatric inpatients are uninsured. Nationwide specialists say such disparities are frequent.
Tiefenthaler vows to maintain her nonprofit hospital’s 14-bed psychiatric unit open, despite the fact that it loses $2 million per yr. That’s a big loss for a company with an total annual finances of about $120 million. However the individuals who use the psychiatric unit want medical care, “just like people who have chest pains,” Tiefenthaler stated.
Medicaid covers well being look after about 72 million Individuals with low incomes or disabilities. Tiefenthaler predicts that if a few of them are kicked off this system and left with out insurance coverage protection, extra individuals would delay remedy for psychological well being issues till their lives spin uncontrolled.
“Then they’re going to enter through the emergency room when they’re in a crisis,” she stated. “That’s not really a solution to what we have going on in our country.”
Republican congressional leaders have vowed to guard Medicaid for individuals who want it, however in addition they have referred to as for billions of {dollars} in cuts to areas of the federal finances that embody this system.
The U.S. already faces a deep scarcity of inpatient psychological well being companies, lots of which had been decreased or eradicated by personal hospitals and public establishments, stated Jennifer Snow, director of presidency relations and coverage for the Nationwide Alliance on Psychological Sickness. On the similar time, the variety of individuals experiencing psychological issues has climbed.
“I don’t even want to think about how much worse it could get,” she stated.
The American Hospital Affiliation estimates almost 100 U.S. hospitals have shuttered their inpatient psychological well being companies prior to now decade.
Such closures are sometimes attributed to psychological well being companies being extra prone to lose cash than many different sorts of well being care. “I’m not blaming the hospitals,” Snow stated. “They need to keep their doors open.”
Medicaid typically pays hospitals decrease charges for companies than they obtain from personal insurance coverage or from Medicare, the federal program that principally covers individuals 65 or older. And Medicaid recipients are significantly prone to want psychological well being care. Greater than a 3rd of nonelderly Medicaid enrollees have some kind of psychological sickness, in keeping with a report from KFF, a nonprofit well being coverage group that features KFF Well being Information. Iowa has the best price of psychological sickness amongst nonelderly Medicaid recipients, at 51%.
As of February, simply 20 of Iowa’s 116 group hospitals had inpatient psychiatric items, in keeping with a state registry. Iowa additionally has 4 freestanding psychological hospitals, together with two run by the state.
Iowa, with 3.2 million residents, has a complete of about 760 inpatient psychological well being beds which might be staffed to look after sufferers, the state stories. The Remedy Advocacy Middle, a nationwide group searching for improved psychological well being care, says the “absolute minimum” of such beds would translate to about 960 for Iowa’s inhabitants, and the optimum quantity could be about 1,920.
Most of Iowa’s psychiatric beds are in metro areas, and it may well take a number of days for a slot to return open. Within the meantime, sufferers routinely wait in emergency departments.
Sheriff’s deputies typically are assigned to move sufferers to out there amenities when remedy is court-ordered.
“It’s not uncommon for us to drive five or six hours,” stated Clay County Sheriff Chris Raveling, whose northwestern Iowa county contains Spencer, a metropolis of 11,000 individuals.
He stated Spencer Hospital’s psychological well being unit typically is simply too full to simply accept new sufferers and, like many such amenities, it declines to take sufferers who’re violent or charged with crimes.
The result’s that persons are held in jail on minor expenses stemming from their psychological diseases or addictions, the sheriff stated. “They really shouldn’t be in jail,” he stated. “Did they commit a crime? Yes. But I don’t think they did it on purpose.”
Raveling stated authorities in lots of circumstances determine to carry individuals in jail in order that they don’t damage themselves or others whereas awaiting remedy. He has seen the issues worsen in his 25 years in regulation enforcement.
Most individuals with psychological well being points could be handled as outpatients, however lots of these companies additionally rely closely on Medicaid and may very well be susceptible to finances cuts.
Jon Ulven, a psychologist who practices in Moorhead, Minnesota, and neighboring Fargo, North Dakota, stated he’s significantly fearful about sufferers who develop psychosis, which frequently begins within the teenage years or early maturity. In the event that they’re began straight away on treatment and remedy, “we can have a dramatic influence on that person for the rest of their life,” he stated. But when remedy is delayed, their signs typically change into more durable to reverse.
Ulven, who helps oversee psychological well being companies in his area for the multistate Sanford Well being system, stated he’s additionally involved about individuals with different psychological well being challenges, together with despair. He famous a research printed in 2022 that confirmed suicide charges rose quicker in states that declined to develop their Medicaid applications than in states that agreed to develop their applications to cowl extra low-income adults. If Medicaid rolls are decreased once more, he stated, extra individuals could be uninsured and fewer companies could be out there. That might result in extra suicides.
Nationally, Medicaid coated almost 41% of psychiatric inpatients cared for in 2024 by a pattern of 680 hospitals, in keeping with an evaluation performed for KFF Well being Information by the monetary consulting firm Strata. In distinction, simply 13% of inpatients in these hospitals’ most cancers applications and 9% of inpatients of their cardiac applications had been coated by Medicaid.
If Medicaid members have psychological crises after shedding their protection, hospitals or clinics must deal with lots of them for little or no fee. “These are not wealthy people. They don’t have a lot of assets,” stated Steve Wasson, Strata’s chief information and intelligence officer. Despite the fact that Medicaid pays hospitals comparatively low charges, he stated, “it’s better than nothing.”

Birthing items, which even have been suffering from closures, face related challenges. Within the Strata pattern, 37% of these items’ sufferers had been on Medicaid in 2024.
Spencer Hospital, which has a complete of 63 inpatient beds, has maintained each its birthing unit and its psychiatric unit, and its leaders plan to maintain them open. Amid a important scarcity of psychological well being professionals, it employs two psychiatric nurse practitioners and two psychiatrists, together with one offering care by way of video from North Carolina.
Native resident David Jacobsen appreciates the hospital’s efforts to protect companies. His son Alex was assisted by the ability’s psychological well being professionals throughout years of struggles earlier than he died by suicide in 2020.
David Jacobsen is aware of how reliant such companies are on Medicaid, and he worries that extra hospitals will curtail psychological well being choices if nationwide leaders minimize this system. “They’re hurting the people who need help the most,” he stated.
Folks on Medicaid aren’t the one ones affected when hospitals cut back companies or shut remedy items. Everybody locally loses entry to care.
Alex Jacobsen’s household noticed how frequent the necessity is. “If we can learn anything from my Alex,” certainly one of his sisters wrote in his obituary, “it’s that mental illness is real, it doesn’t discriminate, and it takes some of the best people down in its ugly swirling drain.”
©2025 KFF Well being Information. Distributed by Tribune Content material Company, LLC.
Initially Revealed: