Beshear uses state money to fund Louisville special needs clinic, calling it a 'Band-Aid solution'

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Gov. Andy Beshear announced he’s reallocating money from a planned Capitol Annex renovation fund to provide one fiscal year of funding for Louisville’s Lee Specialty Clinic, calling it a temporary “Band-Aid” and urging lawmakers to permanently fund it in the next session.
The clinic faced major downsizing after the legislature reduced the behavioral health/developmental disabilities budget, leading to a reported $4.5M reduction and termination notices for most staff; more than 1,000 patients were expected to lose access to care starting July 15.
Advocates and Kentucky House Democrats pushed state leaders to restore funding, arguing the clinic provides essential medical, dental, therapy, and behavioral support for people with complex disabilities and that long-term stability remains uncertain.

LOUISVILLE, Ky. (WDRB) — Gov. Andy Beshear announced plans Thursday to shift state funding toward Louisville's Lee Specialty Clinic.

Patients, parents and staff at the clinic spent weeks in limbo. They were stressed and scared about what comes next. But that burden was lifted when Beshear announced plans to move money from a $400 million fund for annex renovations set for 2029 to fund the clinic for a fiscal year.

"Legislators have claimed I have flexibility to move funds to cover essential services, so I've taken those words as legislative intent, and I'm doing what's needed to help the families who rely on this clinic," Beshear said in a news release. "But let me be clear, this will be a Band-Aid solution. It would not permanently fix this problem, which we will face again if the legislature does not take action."

The clinic provides medical care, dental services, therapy and behavioral support under one roof for patients with complex disabilities, many of whom families said struggle to receive care elsewhere.

"These families have enough to worry about," said Hayli Potts, patient care specialist at Lee Specialty Clinic. "They don't need to worry about if they're going to have a doctor this year, next year, and so forth."

The clinic, funded through the Centers for Medicare and Medicaid Services and the Kentucky Cabinet for Health and Family Services, was facing the possibility of having to significantly downsize after millions of dollars were cut from its budget.

As a result, more than 1,000 patients were expected to lose access to care beginning July 15.

"How do I get refills on medication until we can find somebody," asked parent Tina Tembeleska, whose 31-year-old son Alex visits the clinic monthly.

Beshear urged Kentuckians to contact their legislators to ask them to provide the proper funding when they return in January for the next legislative session.

In a statement Thursday, Kentucky House Speaker David Osborne accused Beshear of "forcing Lee Clinic families to endure unnecessary and cruel hardship" and said funding for the clinic was included in the budget passed by the General Assembly "from the very beginning."

"This entire situation was unwarranted and has caused tremendous anxiety and hardship for the Kentuckians who rely on these vital services," Osborne said.

Dozens of people packed a Medicaid Oversight and Advisory Board committee meeting Wednesday afternoon in Frankfort to advocate for the Lee Specialty Clinic and urge state leaders to restore funding.

In a statement June 12, a spokesperson with the Kentucky Cabinet for Health and Family Services said the state legislature reduced the Department for Behavioral Health, Developmental and Intellectual Disabilities budget by 4% in fiscal year 2027 and 7% in fiscal year 2028, forcing a total $4.5 million reduction for the clinic.

Staff said most employees received 30-day termination notices June 11, and only eight employees are expected to remain.

While outpatient services will remain open for the next two years with the budget bill appropriation, the cabinet said it will serve significantly fewer patients.

The day before the meeting, members of the Kentucky House Democratic Caucus sent an open letter to House Speaker David Osborne asking that the $14 million set aside for debt service related to renovations to Legislative Research Commission's Capitol Annex.

"When faced with a choice between preserving healthcare for vulnerable Kentuckians and accelerating a building renovation, the General Assembly should choose people over bricks and mortar," the letter said.

Beshear on Tuesday called the cuts "completely avoidable" and largely blamed the Republican majority in the General Assembly for not following the budget the governor put forward. He said his proposed budget would have fully funded providers like the Lee Specialty Clinic, Medicaid and senior meal programs.

Families warned Wednesday that even if temporary funding is found, the clinic's long-term future remains uncertain beyond the next year.