The state of Pennsylvania’s plan to close psychiatric hospitals and transition care to community-based programs has been severely undermined by funding cuts, lawsuits, and administrative challenges. An investigation by **Spotlight PA** reveals that the **Community Hospital Integration Project Program** (CHIPP), designed over 30 years ago to facilitate this transition, has instead seen a reversal in its objectives over the past decade.
Created in 1991, CHIPP aimed to redirect resources from state-run psychiatric hospitals to community care, providing a more effective support system for individuals with severe mental illnesses. The initiative was intended to be a lasting commitment to both current and future generations. As **Sherry Snyder**, a former official in the **Office of Mental Health and Substance Abuse Services**, stated, CHIPP was never meant to be the sole funder of mental health services but rather “like the mortar between the bricks” of a comprehensive care system.
For a period, the program demonstrated success, but since 2015, the state has ceased closing vacant hospital beds, which is a critical step toward reducing reliance on institutional care. In recent years, funding for community mental health initiatives has significantly slowed, while the state has allocated over **$175 million** toward projects aimed primarily at individuals facing criminal charges who require specialized care to understand their legal situations.
The shift in focus has drawn the attention of advocacy groups like the **American Civil Liberties Union** (ACLU), which has engaged in legal battles over the state’s treatment of individuals with mental health issues. According to a spokesperson for the **Pennsylvania Department of Human Services**, Brandon Cwalina, the funding for competency restoration treatment is a legal obligation rather than a matter of priority.
A recent state-supported study corroborates the findings of the Spotlight investigation, indicating that the current system disproportionately affects individuals charged with low-level offenses tied to their mental health issues. The report highlights that more than one in four patients in state psychiatric beds are there due to criminal charges, raising concerns about the adequacy of community support systems that were meant to prevent such institutionalization.
As Pennsylvania’s CHIPP was being established, state officials were committed to ensuring that funding for mental health services remained intact following the closure of state hospitals. The program transitioned funding into grants for local governments, enabling them to develop community services that were not covered by insurance. In its initial decade, the state closed four psychiatric hospitals, resulting in a reduction of nearly 1,500 beds.
However, a marked decline in funding began with the administration of **Governor Tom Corbett** in 2012, when significant cuts to mental health programs were proposed. Snyder recalls the deep concern expressed during public meetings about the potential impact of these cuts, which included a **$9 million** reduction in CHIPP funding. The budget cuts were described as “devastating” by attendees, and Snyder noted that the state’s commitment to fulfilling its obligations under the **Olmstead v. L.C.** Supreme Court decision seemed to waver.
Although the patient population in state hospitals had decreased significantly between 1993 and 2003, the pace of bed closures slowed dramatically in the years that followed. The CHIPP program, which had seen funding grow to over **$100 million** by 2001, experienced a drastic reduction in new funding in its third decade, with less than **$40 million** allocated for community resources.
These funding cuts created a cycle of mistrust among counties, which became hesitant to accept state dollars for mental health services, fearing future cuts would leave them unable to support their communities effectively. The funding model required counties to relinquish a state hospital bed to receive financial support, which posed challenges given that many patients remaining in state hospitals required more intensive care than those previously discharged.
The state’s approach to mental health treatment has increasingly involved the criminal justice system. Under Pennsylvania law, individuals who cannot assist in their own defense are ordered to undergo competency restoration treatment, often in state hospitals. This situation has led to significant wait times for treatment, with many individuals remaining incarcerated longer than the maximum sentences for their charges.
In 2015, the ACLU filed a lawsuit against the state, arguing that the prolonged incarceration of individuals with mental health issues violated their constitutional rights. The state quickly settled the lawsuit and allocated additional funds to enhance community services, but the challenges persisted.
Despite some progress, the state’s focus has increasingly shifted towards forensic mental health care, with funding directed to programs that primarily serve those entangled in the justice system. Since 2020, over **$30 million** per year has been invested in forensic projects, while traditional CHIPP funding has dwindled to under **$2 million** annually.
As Pennsylvania continues to navigate its mental health landscape, the implications of these funding decisions remain significant. Advocates argue that the state’s current prioritization of forensic care over community-based treatment contradicts the original vision of CHIPP and the goals established by the Olmstead decision.
The future of mental health care in Pennsylvania hinges on the state’s ability to refocus its efforts on community support systems that provide sustainable, effective care for individuals with mental health needs, rather than relying on the criminal justice system as a default solution.
