Bert Nash Community Mental Health Center Faces Financial Challenges
With a projected multi-million dollar deficit looming for 2025, the Bert Nash Community Mental Health Center has decided to cancel its contract with an insurance provider that could affect services for over 100 centers.
This information was revealed in a statement from the nonprofit, where interim CEO Kirsten Watkins explained the situation. The center has terminated its contract with Cigna Healthcare, potentially impacting 121 patients. Watkins mentioned that staff are actively assisting these patients in navigating next steps, which may include connecting them with other local healthcare options.
When asked about the reasons for this contract cancellation, Watkins indicated that the reimbursement rates from Cigna were significantly lower than the actual costs of care. Despite efforts to negotiate these fees, the nonprofit was unsuccessful.
In response to queries regarding the financial implications of this decision for Bert Nash, Watkins noted that while specific financial details are hard to pinpoint, continuing to work with Cigna would have resulted in substantial financial losses that would strain the organization’s ability to support the community.
The Bert Nash Community Mental Health Center’s financial difficulties have been evident throughout 2025. Earlier this year, the nonprofit had hoped local leaders would be prepared for a deficit. Although they initially planned to avoid layoffs, this changed in late May when they declared an “economic emergency” and had to let go of about 30 employees. Some staff members also faced pay cuts.
In late June, the then-CEO Patrick Schmitz resigned, yet the organization continued to compensate him based on a retirement benefit. Chairman Matthew Herbert disclosed that Schmitz had opted for a 15% pay cut earlier in the year, but this became moot following his resignation.
In July, Bert Nash requested around $1.7 million from the Douglas County Commission to address the anticipated losses for 2025. Meanwhile, Interim CEO Watkins spoke candidly to the Financial Committee about the budgetary strains, emphasizing her commitment to thorough financial review.
Watkins shared that the organization is seeking assistance from external entities, such as SSC Advisor, an accounting firm, for budgeting and audit preparations. They’re also working with a debt collection agency to recover unpaid balances from clients. A significant challenge has been the number of clients without insurance, estimated at 28%, costing Bert Nash dearly.
Watkins reiterated that despite staffing challenges, the organization remains committed to handling mental health emergencies. From May to July, their treatment center responded to over 1,000 crisis situations and provided care to more than 552 individuals—indicative of a 5% increase compared to the previous year.
Watkins, a licensed clinical psychologist who has been with Bert Nash since August 2021, remains optimistic about the future. “There’s a lot of work ahead,” she stated, “but I believe we’re building on the future.” She expressed confidence in both her team and the community at large.
