The New Mexico Health Care Authority (HCA) contracted with Manatt Health Strategies, LLC to conduct a comprehensive behavioral health assessment and feasibility study examining how to better serve individuals with serious mental illness or substance use disorders, a population that often relies on emergency interventions.
Source: New Mexico Health Care Authority
Photo: Courtesy
Facing mounting frustration over a revolving door of arrests and releases, the Las Cruces Police Chief has asked residents to help address the growing number of repeat offenders ruled “not competent” to stand trial and returned to the community without treatment. The appeal comes as New Mexico undertakes a $1 million statewide study to evaluate how its behavioral health system serves people with serious mental illness and substance use disorders. But a recent report from the Federal Reserve Bank of New York underscores the difficulty of finding effective solutions, noting that involuntary psychiatric commitments and similar interventions have produced mixed results. Together, the developments illustrate the state’s struggle to balance public safety, personal liberty, and the limits of existing mental health care.
The article that follows is the second in a three-part series examining how New Mexico’s legal, medical, and community systems intersect in responding to mental illness and public safety.
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SANTA FE – New Mexico will study additional opportunities to augment health care and social services for Medicaid members with serious mental illness under a $1 million legislative initiative awarded to Manatt Health Strategies, LLC.
The New Mexico Health Care Authority (HCA) contracted with Manatt Health Strategies, LLC to conduct a comprehensive behavioral health assessment and feasibility study examining how to better serve individuals with serious mental illness or substance use disorders, a population that often relies on emergency interventions.
“New Mexico knows that mental health is a component of overall wellness. The more we can integrate mental health into whole person care, the more we can do serve individuals who need social support, said Medicaid Director Dana Flannery. “This study will examine where gaps in service might exist and where further behavioral health funding might move more individuals into recovery from substance use or mental illness.”
The New Mexico Legislature appropriated $1 million for the study during its 2025 session. The final report is due in January 2026, ahead of Legislature’s next session, to inform potential legislation for additional behavioral health system funding.
Through a competitive procurement process, Manatt was selected for its expertise in behavioral health services, Medicaid policy and financing strategies, and data analysis. The assessment will include stakeholder engagement, data-driven modeling, and evaluation of potential service delivery and financing models.
Manatt will partner with Milliman to provide health care actuarial services and Kaufmann and Associates, Inc., which specialize in culturally grounded research and evaluation.
Contract activities will begin immediately.

