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Opioid abatement council delivers annual report; updates grant information

Opioid settlement

By KATE COIL

TT&C Assistant Editor

The Tennessee Opioid Abatement Council issued its annual report for 2023 including the total amount of funds received by the fund, abatement strategies that have been approved, and what funds and expenses have been disbursed. 

Franklin Mayor Dr. Ken Moore, who serves as the TML representative on the opioid abatement council, said the first disbursements of funds show that the council is working to help local communities find and fund solutions that work to address the opioid crisis across the state.  

“Tennessee has not been immune to the opioid pandemic and the devastation brought upon the families of over 70,000 of our fellow citizens,” Moore said. “The work of the Opioid Abatement Council will distribute the millions in settlement funds toward programs, strategies, and expenditures that lead to healing, hope, and wholeness to Tennesseans and their families who have suffered and been impacted by opioid use disorder. The OAC has begun the process in a transparent and professional fashion by the 16 professionals authorized by the Tennessee General Assembly.” 

Funding Breakdown
Breakdown of how opioid abatement settlement funds are being distributed in Tennessee. 

Dr. Stephen Loyd, chair of the opioid abatement council, said the past year has laid the groundwork for the council to continue to support positive investments of abatement funding.  

“This past state fiscal year for the Opioid Abatement Council has laid the foundation for years of impactful investment to make the most of the opioid litigation dollars coming to Tennessee,” Loyd said. “Our proudest achievement was the initial disbursement of $31 million directly to county governments in early 2023. Also in the last fiscal year, our council staff took on the herculean task of building a grant application and disbursement process from scratch. That work combined with the engagement of our members and their willingness to look at all components of a recovery-oriented system of care shows that Tennessee’s Opioid Abatement Council truly had a full and meaningful year of work.”  

Opioid abatement council manages 70% of Tennessee’s abatement funds with 15% going to the state and 15% going to government subdivisions, such as municipalities and counties, that were part of opioid lawsuits. Of the 70% managed by the opioid abatement council, 35% goes to all 95 counties based on calculations set forth by the Tennessee Attorney General’s Office with some counties sharing their funds with municipalities. The remaining 65% of the abatement council’s funds are available for communities to apply for.  

Tennessee received a total of five deposits into its opioid abatement funds in Fiscal Year 2023 totaling $95 million. Of those funds, $4.1 million was received from the Mallinckrodt settlement, $651,000 was received from the McKinsey settlement, and three payments were received from major distributors settlement totaling $14.9 million, $15.7 million, and $59.7 million each.  

Opioid funding settlement statement
The Tennessee Opioid Abatement Council's yearly financial summary. 

During the same period, $1.35 million in funds was kept for departmental expenses by the opioid abatement council. Staff for the opioid abatement council includes the executive director, deputy director, grants program director, two grants analysts, two accountants, an executive administrative assistant, and a part-time attorney. 

First annual payments totaling $31.4 million were paid out from the council to all 95 counties in February and March. Annual payments to counties will continue for at least 17 years with each county expected to receive a payment during the first quarter of each calendar year.  

As of July 30, 2023, the abatement trust fund had a balance of $78,871,342.86, meaning only 0.31% of its funds had been spent.  

The opioid abatement council met 8 times between July 2022 and August 2023 as well as held three town halls in Cleveland, Dyersburg, and Murfreesboro to hear from the public about what projects are working and their thoughts on how to prevent opioid misuse and encourage treatment. Additional town hall meetings are planned and will be announced via the council’s website. (Opioid Abatement Council (tn.gov)) 

Many of the council meetings were devoted to designing and approving the process by which communities can apply for the 65% of the opioid abatement funds being made available through grants. This process was done between the winter of 2022 and summer 2023 with the grant process opening for applications on Sept. 1, 2023.  

While a maximum amount of funding for each grant has not been set, all grant contracts must comply with all applicable contractor requirements and will be subject to both program and fiscal monitoring. Grants will be funded on a quarterly basis and are not considered federal or state grants. Semiannual reports will be required to the opioid abatement council from grantees. Grants may be approved for one, two, or three years. Uses for grant funds include:  

  • Expand training for or distribution of naloxone or other FDA-approved drugs to reverse opioid overdoses 
  • Medication-assisted treatment (MAT) distribution and other opioid-related treatment 
  • Programs for pregnant and post-partum women 
  • Expanding treatment for Neonatal Abstinence Syndrome (NAS) 
  • Expansion of warm hand-off programs and recovery services 
  • Treatment for the incarcerated population 
  • Prevention programs 
  • Expanding syringe service programs 
  • Evidence-based data collection and research analyzing the effectiveness of abatement strategies 
  • Treatment of opioid use disorder (OUD) 
  • Support of people in treatment and recovery 
  • Connections to care 
  • Prevention of over-prescribing and dispensation 
  • Harm reduction programs 
  • Leadership, planning, and coordination, and Support of first-responders 

For more information on the council, its work, and future meetings, visit https://www.tn.gov/oac.html.