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April 2, 2025

Funding cuts halt telehealth for SD law enforcement

SIOUX FALLS, S.D. (KELO) – After a cut in federal aid to statewide behavioral health programs, one South Dakota telehealth service, impacting law enforcement agencies, will be put on pause.

The SD Department of Social Services (DSS) lost over $2.9 million in supplemental grants from the American Rescue Plan Act (ARPA) after the U.S. Department of Health and Human Services terminated the funds.

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“These services are important to many South Dakotans and without this money, it is unclear what will happen to these people and programs,” Dan Ahlers, Executive Director of South Dakota Democratic Party, said in a statement to KELOLAND News.

KELOLAND News asked DSS for a list of vendor names impacted, but were refused the request.

One medical center, Avel eCare, lost its more than $400,000 contract with DSS due to the cuts.

Mark Johnston, executive director of business development and government affairs at Avel eCare, told KELOLAND News DSS canceled the Avel eCare contract on April 1.

“We’re dealing with folks that really need help and we’re doing that through telehealth,” Johnston said.

Avel eCare’s virtual crisis care (VCC) takes the biggest hit from the funding cut, Johnston said.

VCC serves first responders and law enforcement as an online tool, where a secondary resource, like a behavioral analyst or psychologist, will help an officer during a crisis relief situation, such as threats of self-harm or suicide.

VCC provides 24/7 telehealth in 50 jurisdictions across South Dakota, Johnston said, including the Clay and Pennington County Sheriff’s Offices.

Because funding ended in South Dakota, VCC will no longer be active for law enforcement in the state, according to Johnston.

“I’m hopeful that we can restart it after another funding mechanism is found,” Johnston said. But VCC will continue to serve communities nationwide.

The DSS grants were intended to be distributed until September 30, 2025, according to the DSS website.

Because the timeline has been disrupted, Ahlers said the future for people depending on the affected behavioral health services becomes uncertain.

“Ending these contracts without cause erodes our reliability and trust in the federal government,” Ahlers said in his statement. “Contracts are agreements between parties for services. It sends a message that our federal government does not honor its word.”

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But Johnston says he has hope for the next legislature.

“I’ve got a lot of faith in our elected officials that they will come up with a way to fund these vital services to our citizens,” Johnston said.

KELOLAND News reached out to state lawmakers for a response and we’ll update this story once it comes through.

According to Avel eCare, VCC was created to fill the gap for officers and the growing rates of depression and suicidal ideation since the COVID-19 pandemic.

“In most cases, where the iPads have been used, the person in crisis was directed to resources rather than detained,” Andy Howe, Clay County Sheriff, said in a video about Avel’s virtual crisis care. “We’ve seen some real value there, where they’re directed to the person that can actually help them.”

Through the team of providers, Johnston said VCC can do the following:

Deescalate crisis situations 80% of the time.

Create safety plans in conjunction with law enforcement.

Help citizens avoid the stigma of jail.

Help citizens avoid the stigma of an overworked, understaffed emergency room.

Provide outpatient resources through telehealth.

“Nearly every day we’re supporting somebody, somewhere in our state who’s struggling,” Johnston said.

Ahlers stressed how telehealth services are a vital component to the state’s rural healthcare system.

“Rural areas already struggle to provide a variety of healthcare services,” Ahlers said in his statement. “Stripping any funding or other resources from rural areas is devastating and could potentially cost lives.”

Based in Sioux Falls, Avel eCare is a virtual healthcare system that supports hospitals, schools, government agencies, nursing homes, and more in almost every state in the nation, according to Johnston.