RiverValley Behavioral Health is raising serious concerns over potential federal cuts to Medicaid and the Hospital Rate Improvement Program (HRIP). A statement from RVBH said changes could cripple critical behavioral health services for vulnerable populations across western Kentucky and beyond.
In the statement, RiverValley said possible funding reductions threaten the region’s ability to provide psychiatric care, addiction recovery services, therapy for families and children, and support for those with autism, disabilities, and trauma. The organization, which serves as a certified community behavioral health clinic, also cautioned that hospitals not facing immediate closure may be overwhelmed by rising demand.
“At RiverValley Behavioral Health, we are more than a provider. We are a place of healing, a source of hope, and a lifeline for thousands of children, adults, and families throughout western Kentucky and beyond,” said Wanda Figueroa-Peralta, CEO of RiverValley Behavioral Health.
The statement continued, “These cuts would mean children in crisis could lose access to inpatient psychiatric care; people battling substance use may be turned away from life-saving treatment; families supporting loved ones with autism or disabilities may lose essential therapies and support services; survivors of trauma may be left without counseling or care.”
The release emphasized that this is not a political issue but a human one, noting that “proposed cuts affect individuals and families who are most vulnerable and in urgent need of care and support.”
RiverValley has joined more than 60 health systems and hospitals across Kentucky in urging lawmakers to restore funding levels. Organizations across the state signed a joint letter coordinated by the Kentucky Hospital Association (KHA) opposing the Senate version of the “Big, Beautiful Bill,” which ultimately passed and capped State Directed Payment (SDP) programs by aligning them with Medicare’s lower reimbursement rates.
RiverValley said these changes will not only result in the loss of services but will also destabilize the healthcare workforce.
“Cuts to Medicaid and HRIP not only endanger vital services; they devalue the essential work performed by our therapists, nurses, physicians, peer support specialists, and frontline staff,” the statement said. “Reducing funding threatens their jobs, creates anxiety across the workforce, and undermines the stability of our healthcare system at a time when our communities need it most.”
According to the RVBH, Medicaid-funded services are foundational to long-term recovery and overall community health. The statement said those services help children stay in school, keep adults employed, and prevent hospitalizations and suicides.
“Medicaid-funded services are the foundation of recovery,” Figueroa-Peralta said. “They don’t just change lives; they save them.”
RiverValley also credited bipartisan cooperation for past mental health advancements and said that same spirit of unity is needed now more than ever.
“Some of the most transformative advancements in behavioral health, including the Certified Community Behavioral Health Clinics (CCBHC) model and many of the innovative programs we’ve launched in recent years, were made possible through bipartisan, collaborative leadership,” Figueroa-Peralta said.
While acknowledging the bill’s passage, RiverValley is calling on residents to continue making their voices heard.
“Please take a moment to contact your representatives and share your concerns to let them know cuts to Medicaid and HRIP have real consequences,” the organization stated. “Though the bill has passed, your voice still matters. These programs must be protected.”
