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Youth Substance Abuse Residential Treatment Facilities

Youth Substance Abuse Residential Treatment Facilities

Total Award Amount: $2,000,000

Award Information:

  • This grant will be awarded to either one single bidder or two bidders at $1,000,000 max.

Application Due Date: June 3, 2024

Statement of Need:

While Arkansas has youth/adolescent mental health outpatient treatment, we do not have residential substance abuse treatment for adolescents or youth. Medicaid is currently seeking a hospital to construct or renovate a psychiatric hospital wing to provide 30 to 60-day treatment programs for youth/adolescents struggling with substance abuse disorders. Medicaid policy is being developed to allow payment for acute and residential treatment.

Required Grant Activities:

This funding will be awarded to construct or renovate physical infrastructure that supports new inpatient substance abuse treatment settings for youth/adolescents.

Program Description:

This grant allows Medicaid providers to convert or renovate existing hospital spaces into residential substance abuse treatment units for youth/adolescents.

Applicant Qualifications:

Applicants selected for the project, must, at a minimum, meet the below requirements:

  • Must be enrolled as a Medicaid provider.
  • Applicant must already be licensed by the Arkansas Department of Health.
  • Must demonstrate a commitment to serving Medicaid members through the grant period and beyond.
  • Must have capacity to begin project work by September 1, 2024. A workplan/construction plan will be required.
  • As part of this project, all grant recipients will be required to participate in evaluation activities and provide data as requested by the Department.

Grant Usage Requirements:

  • Grant funds may be only used to supplement, expand, or start a new program.
  • Project work must begin after legislative approval of the grant, tentative start date of September 1, 2024. Expenses incurred prior to this date are not eligible for grant funding.
  • Project work must be completed by September 2026.  Project expenses incurred after this date are not eligible for grant funding. Incomplete construction by September 2026 will result in provider’s repayment of ARPA grant funding.
  • Grantee must agree to participate in all program evaluations, report required program metrics, and provide all data as requested to the department, within established grant timelines.
  • Grant funding will be paid on a reimbursement basis. Grantees will begin grant work and will provide monthly progress reports to Arkansas Department of Human Services. The grantee will be paid a portion of the grant amount based on the successful completion of the monthly progress report (which may include invoices used to verify grant expenses). Upon successful completion of all monthly reports, the grantee will receive their entire grant award.

Ineligible Activities:

  • Grant funds may not be used to supplant pre-existing functions.
  • Grant funds may not be used for prospective payments. A prospective payment is a method of reimbursement in which Medicaid payments are made based on a predetermined, fixed amount.

How to Apply:

All of the following items must be submitted online through email only between May 3, 2024— June 3, 2024, 5:00 PM CT. Submit packets to Hunter Ballard at

Late and/or incomplete application packets will not be considered. The grant review committee reserves the right to deem an application ineligible if it does not include all required documents.

Required Application Items:

Contact Information:
If you have any questions or concerns about the application process, please reach out to the Department through the program contact:

Hunter Ballard-Medicaid Specialty Populations