January 22, 2025  – In an attempt to streamline mental health and substance use services, the Iowa Department of Health and Human Services (HHS) announced the Iowa Primary Care Association (Iowa PCA) as the new administrative service organization (ASO) for the state’s behavioral health system. The services under this new framework will begin on July 1, 2025.

This decision comes as part of Iowa’s comprehensive plan to consolidate its currently fragmented behavioral health services. Previously, the state was divided into 32 mental health and substance use service regions. The reorganization aims to condense these into seven behavioral health districts, each managed by the newly appointed ASO.

Iowa PCA, a nonprofit that already supports 14 community health centers across the state, will play a big role in this transformation. These centers collectively handle over 120,000 behavioral health-related visits annually, providing care to more than 32,000 residents. With this experience, the Iowa PCA is expected to bring a high level of expertise and efficiency to the statewide system. 

Under the new contract, the Iowa PCA will be responsible for establishing and maintaining a network of provider organizations dedicated to delivering essential services across the seven districts. These services will encompass a broad spectrum of behavioral health needs, including prevention, education, early intervention, treatment, recovery support, and crisis management for mental health and addictive disorders.

The state’s call for proposals, issued on September 1, 2024, outlined the expectations and goals for the new ASO, with the proposal submission deadline set for October 18, 2024. Although the number of bids and the details of unsuccessful bidders remain undisclosed, it was confirmed that the Iowa PCA was awarded contracts for all seven districts. This comprehensive contract will initially run for 18 months, from January 1, 2025, to July 1, 2026, with plans for subsequent terms and awards to follow.

It’s notable that the contract’s administrative costs are capped at 7% of the costs funded by state appropriations, reflecting a focus on maximizing the funds available for direct service provision.