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NEWS

New Mexico’s behavioral health overhaul faces bumpy road to implementation

As regional plans take shape, concerns linger about statewide cohesion and tribal input

Traffic moves along Riverside Drive in Española in this August 2025 file photo. A recently approved behavioral health plan for a region that includes Espanola includes on-demand transportation services, medical detox and workforce development among five funding priorities.
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SANTA FE — More than a year after New Mexico lawmakers voted to overhaul the state’s behavioral health system, implementation of a new region-based approach is still a work in progress. 

An executive committee tasked with approving regional plans dealing with mental health and substance abuse treatment recently approved the second such plan, covering a broad swath of northern New Mexico that includes Santa Fe and Española.

While nine additional plans — out of a total of 13 districts — could be approved in the next month or two, lingering concerns about the flow of funding, tribal input and how the various plans will work together have complicated the implementation push.

Sen. George Muñoz, D-Gallup, who helped lead the bipartisan 2025 push to shift the state’s approach, acknowledged standing up the new system will require a learning curve.

“Until we try it, we don’t know if we’re going to succeed or fail,” Muñoz said in a recent interview.

But he and other supporters of the new system insist change is overdue, after increased state behavioral health spending in recent years failed to lead to deliver significant improvements.

Sen. George Muñoz, D-Gallup, left, speaks during a Senate floor debate in this February file photo. Senate leaders passed a bipartisan bill to overhaul New Mexico's behavioral health system in 2025.

Over the last six years, lawmakers appropriated into improving behavioral health access and outcomes in New Mexico, according to Legislative Finance Committee data. But only about 76% of that money has been spent and a recent audit found some funds intended for children’s behavioral health services was misspent by the state Children, Youth and Families Department.

Under the new system, local government officials and experts around the state have been tasked with crafting regional plans that feature five priorities. Temporary state funding is available to prop up each approved plan.

For instance, the northern New Mexico plan by a behavioral health executive committee includes regional detox facilities, on-demand transportation and workforce development among its priorities.

Legislative analysts have been reviewing the plans to make sure they meet certain goals, including a realistic timeline and specific performance measures.

Eventually, the treatment priorities included in the adopted regional plans could qualify for Medicaid, supporters say, allowing the state to receive federal funding to help pay for them. Some of those treatments could include traditional Native American healing methods to deal with addiction.

Starting next year, the state will earmark about $50 million per year to prop up the regional plans, with about half of the money coming from a new behavioral health trust fund that currently has a balance of about $154 million.

New approach to lingering challenge 

Last year’s push to reshape New Mexico’s behavioral health system came more than a decade after former Gov. Susana Martinez upended the system in 2013, freezing Medicaid funding to 15 providers over alleged fraud and overbilling. All the accused providers were later cleared of wrongdoing.

While new providers were brought in after the funding freeze, it took years for lawmakers to shift the state’s approach to behavioral health planning and spending.

The new region-based approach likely won’t benefit all New Mexicans who need mental health and substance abuse treatment, said retired Albuquerque attorney Peter Cubra, who has been active for decades representing individuals with developmental disabilities.

He estimated there are about 10,000 New Mexicans who are unable to manage their own affairs due to mental health issues. He also questioned the state’s oversight of , or health insurance companies that, combined, manage the state’s roughly $1.2 billion in behavioral health programs funded by Medicaid.

The state Health Care Authority has tasked five employees around the state with helping implement the regional plans, while offering limited centralized guidance, Cubra said.

“These 13 regional plans can accomplish very little until there is a state foundation to build upon,” he told the Journal.

New Mexico has one of the nation’s highest suicide rates, and about 36% of adults in the state reported symptoms of anxiety or a depressive disorder in 2023, according to Kaiser Family Foundation data.

In addition, drug overdose deaths in New Mexico increased by 22.7% last year, even as drug overdose deaths nationwide declined, according to the Centers for Disease Control and Prevention.

Funding doubts cloud regional rollout

During last week’s behavioral executive committee meeting, some members expressed frustration about lingering uncertainty over funding procedures.

Nick Boukas, the director of the Health Care Authority’s Behavioral Health Services Division, said he’s been working with state Department of Finance and Administration officials to determine whether allocated funds can be sent directly to local governments or if they should be reimbursed for their spending.

“I appreciate we do want to get money out,” Boukas said. “However, it also comes down to there are boundaries we don’t control and we have to be responsible to taxpayers.”

However, committee member Violette Cloud said the funding uncertainty could leave some local governments in a lurch as they try to launch new programs.

“I feel like we have our regions, and they’re just driving blind,” said Cloud, who is an attorney and behavioral health expert. “There needs to be a more direct way to get money to the regions.”

Meanwhile, other deadlines still loom even as regions work to finalize their behavioral health plans.

Starting next summer, local representatives from each region will have to provide updates about how their plans are being implemented.

In addition, the Health Care Authority is required under last year’s legislation to establish a universal enrollment and credentialing process for behavioral health providers by July 2027.

Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.