Blue Cross and Blue Shield of Minnesota has pledged $5 million over five years to open an outpatient clinic in Mankato that can address the shortage of rural mental health care while providing hands-on training for the next generation of nurses, counselors and psychologists.

Minnesota's largest nonprofit health insurer on Tuesday announced the funding commitment for the clinic, which will open this year and provide in-person mental health care for eight counties surrounding Mankato. South-central Minnesota has been federally listed since 2022 as lacking mental health professionals.

"Geography should not be a barrier to accessing mental and behavioral health services," said Brett Hart, vice president of behavioral health and mental health parity for Eagan-based Blue Cross. "Far too often, especially in greater Minnesota, mental health needs far exceed available resources."

Depression and anxiety have been rising problems in Minnesota, particularly in the years since the COVID-19 pandemic. Nearly 24% of Minnesota adults were told in 2022 that they have a form of depression, according to federal survey results, which is an increase from 18% a decade earlier.

Mankato and surrounding Blue Earth County have one of the highest poverty rates in Minnesota, which can exacerbate mental health struggles. Minnesota's depression rate was 43% in 2022 for adults in low-income households.

Blue Cross' investment is in partnership with Minnesota State University, Mankato, and its College of Allied Health and Nursing. The college will rotate students to the clinic so they can put their training into practice under the supervision of faculty and licensed professionals.

"There are no other academic training clinics in the state that are also specifically focused on providing integrated outpatient mental health services to rural Minnesotans," said Edward Inch, the university's president.

The Minnesota Legislature also allocated $1.5 million in 2023 for the clinic, which will provide mental health counseling and medication management to patients of all ages, regardless of their insurance status. The clinic will be adjacent to the university campus and will eventually expand to provide virtual therapy appointments as well as psycho-educational evaluations and counseling for substance use disorders.

"A clinic like this is not an easy thing to get off the ground or to maintain," Hart said. "Ultimately, we anticipate that the clinic will be self-sustaining, but we know it can sometimes take several years to get to that point."

The investment is Blue Cross' third in partnership with the university in Mankato to increase access to mental health care and increase career pathways in health care for students.