Coastal Behavioral loses CEO, some of its funding

Sarasota-based Coastal Behavioral Healthcare Inc. President and CEO Dr. Jerry W. Thompson resigned Thursday, April 26. The news came the day before the organization’s potential loss of up to 30% of an approximately $14 million state-funding contract was discovered.

Thompson left “to pursue other professional interests,” according to an April 26 press release.

The next day, an “intent to negotiate” process for 20% to 30% of a contract that used to be exclusive for Coastal Behavioral Healthcare appeared on the Central Florida Behavioral Health Network Inc.

Coastal Behavioral Board Chairman Jack Donoghue, who is leading the organization in an interim role as it searches for a new CEO, said the loss of some of its funding has no correlation with a search for a new CEO.

Coastal Behavioral, an organization with 200 employees serving more than 6,000 individuals in Sarasota, DeSoto, Charlotte and Lee counties each year, was alerted to the state’s decision beforehand.

“The Department of Community Affairs, which is the source of the contract, is embarking on an understandable and perhaps necessary strategy for improving the use of those precious dollars used to provide services in the state of Florida,” Donoghue said.

Coastal Behavioral, Donoghue said, is the first Florida organization to suffer from what will be many other intent-to-negotiation processes for state funding.

The only problem, Donoghue said, is the state’s decision now opens up any Florida organization to bid for the funding (including Coastal Behavioral), as long as it intends to provide services to the Sarasota County area.

“We will, of course, bid on these services and feel we have the local resources, clinical services and overall quality to be able to be very successful,” Donoghue said. “I would love to think a local provider that has 41 years of experience in this community would be a provider of choice for the state to consider.”

Donoghue, meanwhile, said Coastal Behavioral has “numerous other revenue sources and contracts” but did call the contract in question “a significant one” for the organization.

Any state organization must apply for the formerly exclusive Coastal Behavioral funds by Wednesday, May 16; negotiations will begin June 4, and the new contract will be awarded in July.

Manatee Glens President and CEO Mary Ruiz said it’s important to note Coastal Behavioral Healthcare is still open for business as usual and will apply for the same funds it recently lost to the bidding process. In the meantime, other local organizations are expected to bid on the funding that’s no longer exclusive to Coastal Behavioral.

But the state’s decision on such short notice to change how it allocated dollars, Ruiz said, creates ripple effects around the region and statewide.

“My concern for Sarasota is this process is going through all the right steps in an incredibly short period of time,” Ruiz said. “We are worried about the impact to our consumers and our sister counties.

“Coastal is still accepting patients and servicing people as it always has. If the state makes any changes in July, it’s their responsibility to make sure that access to care continues in Sarasota County.”