Prince William County’s New Crisis Receiving Center Faces Funding Hurdles Amidst Medicaid Challenges

Prince William County is developing a new Crisis Receiving Center (CRC), which will provide much-needed mental health and substance abuse services to the community. Set to replace the former Gander Mountain store at 14040 Worth Avenue, the 79,000-square-foot facility is expected to serve as a state model for addressing mental health crises. Still, operational funding hurdles have emerged due to Medicaid restrictions.

The CRC will feature 16 32 beds—eight 16 for adults and eight 16 for children—for individuals needing urgent mental health care. Patients may arrive independently, be transferred from local hospitals, or be brought in by police. Once at the center, individuals will receive continuous monitoring and care for up to 23 hours a day, typically staying between three and five days as they stabilize and prepare for the next steps in their treatment journey.

However, challenges surrounding Medicaid funding are threatening its smooth operation. A longstanding federal policy dating back to 1965 classifies facilities with more than 16 beds that treat individuals with mental health or substance abuse diagnoses as Institutions for Mental Disease (IMD). This classification prevents Medicaid from reimbursing such facilities, presenting a significant financial obstacle for the county.

“We are planning to provide immediate and critical care to those in crisis, but the Medicaid policy hasn’t caught up to the real-world needs of today,” said Prince William County Community Services Executive Director Lisa Madron. “This facility isn’t a long-term care center, but a short-term crisis intervention facility, and yet we are being penalized by policies written nearly 60 years ago.”

The county is working with state officials to seek a waiver allowing the CRC to receive Medicaid funding. However, the application process is lengthy, and approval is expected to take six months or more. In the meantime, the county is exploring interim funding options to keep the CRC on track for its planned opening.

The facility, considered a model for other localities across Virginia, will serve as a critical resource for residents and emergency services. Police officers and healthcare providers now have a dedicated place to send individuals in crisis, reducing the strain on local hospitals and jails.

“This is the kind of facility that communities across the state are going to want to replicate,” said Prince William County Executive Chris Shorter. “We’ve designed it to meet the growing mental health needs of our residents, and we’re confident that once it’s up and running, others will follow our lead.”

The center’s construction is on schedule, but the uncertainty over Medicaid reimbursement remains a concern. The county estimates a potential shortfall of $8 million if the funding issue is unresolved. State lawmakers and the county’s congressional delegation are urged to expedite the waiver process and push for legislative changes to ensure the facility can operate fully.