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Arisa Health Ends 55‑Year Contract Over Funding Gap
Arkansas, Springdale, USASaturday, May 9, 2026
Arisa Health, the nonprofit that runs community mental health centers across 41 Arkansas counties, has chosen not to bid for the upcoming state contract that will replace its current agreement. The decision follows a long‑standing battle against rising operating costs and dwindling public funding.
Why the Decision Matters
- Funding shortfall: The new contract would cut roughly $4.4 million from Arisa’s budget and offers no solutions for the agency’s key concerns.
- Reimbursement woes: Current rates are too low, and adjustments for inflation and population growth are insufficient.
- Workforce crisis: Wage increases needed to attract and retain mental‑health professionals are not covered, threatening staff retention.
Impact on Services
| Service | Status |
|---|---|
| 13 outpatient clinics | Will remain open but may see reduced hours or staffing |
| Mobile crisis units | Ceasing after June 30 |
| Forensic restoration | Discontinued |
| Incarcerated‑person services | Ending after June 30 |
The clinics will continue to serve as central hubs for the 41 counties, but several locations are slated for closure.
What Comes Next
- Arisa’s strategic focus: Tightening resources, prioritizing essential services, and exploring alternative funding sources.
- Community response: Stakeholders await the outcome of Washington County’s ordinance and potential new provider agreements.
- State oversight: The contract decision may prompt a review of mental‑health funding models across Arkansas.
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