DALLAS — Metrocare, Dallas County’s largest behavioral health provider, is facing a severe financial crisis, prompting county leaders to consider restructuring the organization and exploring a potential partnership with Parkland Health.
Metrocare is operating with a year-to-date revenue deficit of more than $7 million. Officials estimate the agency needs between $10 million and $14 million in immediate funding to continue operations, while June operating expenses came in 19% below expectations and cash flow remains limited.
Dallas County Commissioner John Wiley Price said additional funding alone will not solve Metrocare’s problems.
“There are a lot of issues here and the infusion of cash does not clear the debt,” Price said.
Price said Metrocare should focus on its core mission of serving people with intellectual and developmental disabilities, while other mental health services could be managed through the North Texas behavioral health authority and contracted to other providers.
Dallas County Judge Clay Jenkins also acknowledged Metrocare’s financial challenges but proposed a different approach.
Jenkins said Parkland Health and Metrocare should explore an affiliation agreement in which Parkland would oversee Metrocare’s financial operations while Metrocare continues providing behavioral health services.
He said such an arrangement could benefit Metrocare’s approximately 55,000 patients while expanding Parkland’s mental health capacity.
Both Price and Jenkins agreed that Metrocare requires new management, but they differ on how the organization should move forward.
Parkland’s board and Metrocare’s leadership are considering possible next steps as discussions continue.
