Mental Health Block Grant (MHBG) covered services and prohibited expenditures

www.MercyCareAZ.org

April 15, 2022

Applicable to: SABG/MHBG Providers

The Mental Health Block Grant (MHBG) program provides funds and technical assistance from the Substance Abuse and Mental Health Administration (SAMHSA) to AHCCCS.

The funds are used to plan, implement, and evaluate activities that support and treat:

• Adults with serious mental illnesses

• Children with serious emotional disturbances

• Persons experiencing First Episode Psychosis

Please note funds are not an entitlement and services provided are limited by the availability of funds.

Please see our Grants web page to see which providers offer SED, SMI, and FEP services.

In an effort to keep our providers informed, please see the linked list of AHCCCS Covered Non-Title XIX/XXI Behavioral Health Services and prohibited expenditures that apply to all Mercy Care RBHA providers.

The State shall not expend the Block Grant on the following activities:

To provide inpatient hospital services;
To make cash payments to intended recipients of health services;
To purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment;
To satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds;
To provide financial assistance to any entity other than a public or nonprofit private entity; or
To provide individuals with hypodermic needles or syringes so that such individuals may use illegal drugs, unless the Surgeon General of the Public Health Service determines that a demonstration needle exchange program would be effective in reducing drug abuse and the risk that the public will become infected with the etiologic agent for AIDS;
Pay the salary of an individual through a grant or other extramural mechanism at a rate in excess of Level I of the Executive Salary Schedule for the award year;
Purchase treatment services in penal or correctional institutions in the State of Arizona;
Flex funds purchases; or
Sponsorship for events and conferences.

As always, don't hesitate to contact your Mercy Care Network Management Representative with any questions or comments. You can find this Notice and all other provider notices on our Mercy Care website.

Thanks for all you do!