Three pilot sites selected to coordinate physical and behavioral health services in Michigan


CONTACT: Lynn Sutfin, 517-241-2112 

LANSING, Mich. – Today the Michigan Department of Health and Human Services (MDHHS) announced the pilot sites for the state’s Section 298 Initiative.

The selected pilots are:

  • Muskegon County Community Mental Health (HealthWest) and West Michigan Community Mental Health
  • Genesee Health System
  • Saginaw County Community Mental Health Authority

Muskegon County Community Mental Health and West Michigan Community Mental Health, which are geographically contiguous, are conducting a joint pilot.

The Section 298 Initiative is a statewide effort to improve the coordination of physical health services and behavioral health services in Michigan. This initiative is based upon Section 298 in the Public Act 268 of 2016. The Michigan legislature approved a revised version of Section 298 as part of Public Act 107 of 2017.

Under the revised Section 298, the Michigan Legislature directed MDHHS to implement up to three pilot projects and a separate demonstration model in Kent County to test the integration of publicly-funded physical and behavioral health services. MDHHS has been working since August to develop the structure of the pilots, which focuses on payer-level integration of Medicaid-funded physical health and behavioral health services.

The department collected feedback and solicited input from representatives of the current system on specific issues pertaining to the development of the pilots. The department used this input to develop a white paper which describes the parameters for the pilots. 

MDHHS issued a Request for Information (RFI) on Dec. 20, 2017 to select the Section 298 Initiative pilot sites. Proposals were due Feb. 20, 2018.

The RFI included the following mandatory minimum requirements:

  • The applicant is a Community Mental Health Service Provider (CMHSP).
  • The applicant has submitted a signed memorandum of support from at least half of the Medicaid Health Plans (MHP) within the proposed pilot region, which demonstrates their engagement in pre-planning activities.
  • The applicant has submitted a plan demonstrating full financial integration as required under Section 298 of Public Act 107 of 2017.

Contracts for implementation of the pilots will be between MDHHS and the MHPs operating in the pilot regions. In the coming months, MDHHS will work with the selected CMHSPs and MHPs to finalize the structure of the pilots. It is anticipated the pilots will be implemented by Oct. 1, 2018.

For more information about the Section 298 Initiative, visit