The Department of Mental Health announced Friday that it will grant Pathways Vermont, a housing and social services nonprofit, a conditional designation as a “Specialized Services Agency” for the upcoming fiscal year.

The designation will allow Pathways to bill Medicaid for certain services and thereby shore up an $800,000 hole in its budget left by sunsetting federal grants.

At a recent public hearing there was an outpouring of support from clients and mental health professionals who believe Pathways has a unique and important approach to helping stabilize the lives of vulnerable people.

Current Specialized Service Agencies, or community mental health centers, had opposed the nonprofits request on the ground that Pathways doesnโ€™t provide services distinct from what they already offer.

Morgan True was VTDigger's Burlington bureau chief covering the city and Chittenden County.

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