Showing posts with label Al Delia. Show all posts
Showing posts with label Al Delia. Show all posts

23 August 2012

NC DHHS, US DOJ Reach Agreement on Community Based Care for Only Citizens with Serious Mental Illness

From The Arc of North Carolina

Breaking: NC DHHS, US DOJ Reach Agreement on Community Based Care for Only Citizens with Serious Mental Illness

[ view release at arcnc.org ]

Press Release from NC Dept. of Health & Human Services:

Raleigh — The North Carolina Department of Health and Human Services and the United States Department of Justice today reached an agreement on the state’s plan to offer more choices of where and how citizens with serious mental illness receive care and supportive services.

The plan, which was announced last month, will create housing slots in the community to offer the choice of community-based care for many adults with serious mental illness. It will also invest in job training and employment assistance for those citizens and will set up a comprehensive, 24/7 crisis care program for people with a serious mental illness.

This agreement will modernize our mental health system and ensure that North Carolina is providing the best possible treatment for adults diagnosed with severe mental illness. It will also provide the opportunity for many of these individuals to live in community settings if they choose to do so, and ensure that North Carolina is fully complying with the Americans with Disabilities Act and other federal laws.

This agreement is similar to ones signed by governors of a number of other states including, among others, the governors of Virginia and Georgia.

DHHS Secretary Al Delia agrees that more should be done to ensure access to community-based treatment for those with mental illness. “North Carolinians who have a serious mental illness have a right to choose the very best care environment to meet their personal needs,” he said. “That choice – whether they live in the community or in an adult care home – will be supported with access to mental health and other support services that will be available in part due to this agreement. Moving forward with a solution to help them identify and access those choices is the right thing to do,” he said.

“Disability Rights NC applauds the Governor and Secretary Delia for their leadership on this matter. They have not only done the right thing to protect the rights of people with disabilities, they have helped the state avoid costly litigation and destabilizing uncertainty,” said Vicki Smith, executive director of Disability Rights NC.

The agreement outlines DHHS’s plan of action to provide community-based services to people with mental illness. The budget the General Assembly passed in July expressly contemplated a settlement and appropriated funding to make this agreement possible. The timeline for completing the plan is eight years; this transition period will enable people who want to move to community-based settings to do so on a workable timetable and will allow sufficient time for North Carolina’s mental health infrastructure to implement this agreement.

# # #

26 July 2012

news : Adult care home plan for NC under way

APNewsBreak: Adult care home plan for NC under way
By GARY D. ROBERTSON - Associated Press

[ read at News and Observer ]

RALEIGH, N.C. --

North Carolina's state health agency is moving ahead with the first step of a multi-year plan to help move potentially thousands of mentally ill residents from adult care homes to affordable housing and less restrictive living conditions.

The state Department of Health and Human Services publicized Thursday the action plan, which responds to allegations made a year ago by the U.S. Department of Justice that the state was failing to comply with the Americans with Disabilities Act. The government threatened to sue unless improvements were made.

The plan is a calculated risk for state officials because federal attorneys haven't told them whether it's enough to avoid litigation. That could require a judge-approved agreement with the federal government that may be more rigorous and expensive to carry out.

Government lawyers said in July 2011 that thousands of people with mental illness were segregated from society in adult care homes that had essentially become mental health treatment centers without giving them access to community treatment.

The plan, which will cost $10.3 million this fiscal year, will begin moving at least 100 residents with severe mental illness outside the homes to other community housing. Based on their income and ability to function, the displaced residents also will get help with paying rent, job training and potential employment.

The eight-year plan, which could cost a total of $67 million, would work to create 3,000 "slots" for people seeking a full slate of community services, acting HHS Secretary Al Delia said. The number of people that move could be much more because not everyone will need all of the offered services, Delia said.

Those who want to stay in adult care homes can remain there, he told The Associated Press.

"People will have choice," Delia said in an interview. "They will not be required to live in any one place, whether it's in a facility or in the community."


The General Assembly set aside money in this year's budget to begin the transition, which has been the subject of months of talks with the Department of Justice. Delia described HHS and the federal government agreeing largely on the improvements being made.

HHS is "moving forward on implementation because we believe that it's the right policy," Delia said.

Vicki Smith with Disability Rights North Carolina, the group that leveled the 2010 complaint, said the plan sounds good on the surface but lacks a method to require the state to carry out the plan completely. Smith pointed out there's less than six months before Gov. Beverly Perdue leaves office and another administration arrives.

"Many of the people who are issuing these promises will not be around even at the end of the first year to ensure implementation," said Smith, adding that the state has fallen short of expectations in the past when it comes to mental health treatment.

"I just don't think people with mental illness can recover from another failed promise," Smith said.

The department said it still doesn't have an accurate count of the number of mentally ill residents in homes. DOJ wrote in July 2011 that 5,800 people with mental illness live at 288 adult care homes with at least 20 beds where people with mental illness comprise at least 10 percent of the population.

The action plan is one solution to deal with intertwined legal and government challenges involving North Carolina's adult care homes, whose residents include people with chronic health problems, Alzheimer's disease or mental illness. The homes don't have medically intensive services that are found in nursing homes.

The state budget also set aside another $40 million in part to provide assistance to adult care homes that aren't expected to receive some Medicaid reimbursements when a streamlined policy for personal care services goes into effect soon.

The plan's unveiling came on the 22nd anniversary of the signing of the Americans with Disabilities Act. The 2010 complaint by Disability Rights North Carolina also was filed on Thursday's date.

NC Fails at DOJ Settlement, but has a Plan!

22 Years Ago Today...

Thu, Jul 26, 2012 at 7:59 AM
From: Vicki Smith, Executive Director of Disability Rights North Carolina
Re: State fails to settle with DOJ but announces 8 year plan



FOR IMMEDIATE RELEASE


[ view the DRNC Press Release ]


DOJ Update
NC Secretary of Health and Human Services, Al Delia, will announce the details of an 8 year plan to develop services for 3,000 individuals with mental illness in living in Adult Care Homes to more integrated setting appropriate to their needs later today. 


The State and USDOJ have been in confidential negotiations for the last year. At the table were representatives from the Governor’s Office, Department of Health & Human Services, and the Attorney General’s Office. Little information was shared about discussions until today’s announcement that the parties have failed to reach agreement but the state is moving forward with a plan. However, the General Assembly’s inclusion of $10.3 million in the 2012 - 2013 Budget to begin implementation of any settlement was seen as a sign that resolution was near. The announcement will also include acknowledgment by the State that it was unable to reach a settlement agreement with USDOJ, largely because of disagreement regarding an enforcement mechanism.


Our Response

“We are disappointed that the State was unable to come to an agreement to resolve our complaint with USDOJ,” said Vicki Smith, Executive Director of Disability Rights NC. “It is reassuring to have the State acknowledge the enormity of the unmet needs of people with mental illness and their plan to increase supported housing, supported employment and other services. However, the plan outlined by the State lacks a binding agreement, one which once and for all commits the state to fulfill the promises we’ve heard today. “ 

The Department of Justice may still pursue legal action against the state. Whatever steps the USDOJ takes next, Disability Rights NC will continue to address this situation. 

North Carolina has failed to:

Develop a meaningful Community Integration Plan as required by the 1999 Supreme Court’s Olmstead Decision including policies that provide incentives for community based services and placements;

Adequately fund the state’s Mental Health Trust Fund;

Develop community based services as hospital beds were closed, instead it relied on an industry that was neither designed nor competent to promote the recovery and inclusion of people with mental illness in the community; and

Most importantly, the State failed to focus first and foremost on the interests and needs of people with mental illness. It lost sight of its purpose - protecting the health and safety of all its citizens while providing essential human services.

What a way to celebrate the 22 anniversary of the signing of the ADA into law.

Take a look at this short video:  http://youtu.be/6ieH8FE9Dhw

“Let the shameful wall of exclusion finally come tumbling down.”

More information as it develops!


Vicki Smith
Executive Director
Disability Rights NC
2626 Glenwood Avenue, Suite 550
Raleigh, NC 27608
Phone: 919-856-2195
TTY: 1-888-268-5535
Fax: 919-856-2244
vicki.smith@disabilityrightsnc.org


Disability Rights NC is the state's protection and advocacy system. 

Disability Rights NC is a 501 (c)(3) organization. Donations support our efforts to promote a clear and independent voice for North Carolinians with disabilities. If you are a state government employee, you can support Disability Rights NC through the State Employees Combined Campaign (SECC). Please use code # 1544.

This transmission is intended for the sole use of the individual or entity to whom it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. Any dissemination, distribution or duplication of this transmission by someone other than the intended addressee or its designated agent is prohibited. If your receipt of this transmission is in error, please notify us by telephone (919) 856-2195 or return e-mail to the sender. Please delete all copies of this message and any attachments.

13 July 2012

NC DHHS Press Release re Jim Jarrad

N.C. Department of Health and Human Services
For Immediate Release
July 13, 2012
Contact: Julie Henry, 919-855-4840
julie.henry@dhhs.nc.gov

Secretary Delia Selects Jarrard to Lead Division of Mental Health

RALEIGH - N.C. Department of Health and Human Services (DHHS) Secretary Al Delia has announced the appointment of Jim Jarrard as acting director of the Division of Mental Health, Developmental Disabilities and Substance Abuse Services (MH/DD/SAS), effective immediately. Jarrard has been deputy director of the division since October 2010 and worked closely with Division Director Steve Jordan, who was killed last week in a bicycle crash.

“The Department suffered a devastating loss with Steve’s death and we will miss his energy and passion for mental health services and the people we serve,” Delia said. “Jim Jarrard is a knowledgeable and respected leader who I am confident will continue to lead the Division in a positive direction.”

Jarrard has been with the Division of MH/DD/SAS since 1994, serving in a variety of roles. Prior to becoming deputy director, Jarrard was chief of the Resource and Regulatory Management Section, which is responsible for fiscal monitoring, accountability, and regulatory compliance, support of information technology and contracts management. He also served as a team lead for Accountability. Jarrard holds a doctorate in theology and was a pastoral counselor and parish minister before joining the Division.

“Our division is a great model of resiliency for the consumers we serve,” Jarrard said. “We have a duty to keep the focus on our mission to protect the health, safety and well-being of all North Carolinians. I look forward to continuing our positive and productive relationships with community advocates, partners and providers.”

The Division of Mental Health, Developmental Disabilities and Substance Abuse Services (MH/DD/SAS) provides leadership and support to community partners, providers and local management entities/managed care organizations to deliver prevention, treatment, and rehabilitation programs for persons with mental illness, developmental disabilities, and substance abuse disorders in North Carolina.

19 June 2012

NC DHHS Press Release

From:  Titus, Trina Tue, Jun 19, 2012 at 4:51 PM

N.C. Department of Health and Human Services
For Immediate Release

June 19, 2012

Contact: Chrissy Pearson
919-855-4835 or Chrissy.pearson@dhhs.nc.gov

Secretary Delia Announces Reorganization of State Medicaid, DHHS Leadership Team

State Medicaid office will now report directly to Secretary



Raleigh– North Carolina Department of Health and Human Services (DHHS) Secretary Al Delia today announced that he is reorganizing the leadership teams that oversee the state’s Medicaid division.

The changes come after careful evaluation of the Department’s management, said Delia, who was named acting secretary in February.

Michael Watson, DHHS chief deputy secretary, will become the new head of the state’s Medicaid office, the Division of Medical Assistance (DMA). That position will be elevated to serve on the Secretary’s executive leadership team. Watson joined the Department in 2009 as an assistant secretary. He is the former CEO for Sandhills Center for MH/DD/SAS, with more than 20 years of experience and leadership in developing and operating mental health, developmental disabilities and substance abuse services on a local and regional level. His salary remains $160,000.

Watson replaces Dr. Craigan Gray, who served as director of DMA since April 2009 at a salary of $270,000.

Beth Melcher, assistant secretary for mental health, developmental disabilities, and substance abuse services development since August 2010, will become chief deputy secretary. Melcher, a licensed psychologist, is the former president of Recovery Innovations North Carolina. She was clinical director of The Durham Center, and also worked with the National Alliance on Mental Illness North Carolina as its executive director and as public policy director. Her salary will be $141,797.

John Dervin, the secretary’s senior policy adviser since March 2012, will step into a newly created role as chief of staff. Dervin previously served as policy adviser for health and human services for Governor Perdue. His salary will remain $84,000.

“After nearly six months in this role, my first priority for strengthening our management team is to elevate the state Medicaid office to play a more prominent role in the Department’s decision-making process,” said Secretary Delia. “Medicaid is not a stand-alone division. It touches not only multiple DHHS divisions but also plays a huge part in shaping the state budget. We need better communications and stronger oversight of this $12 billion program. I believe these changes will accomplish that.”

These staff changes are effective immediately.

###

AP Article: DMA Director Gray relieved of duties

NC Medicaid director is out of a job
The Associated Press
Posted: Tuesday, Jun. 19, 2012

RALEIGH, N.C. North Carolina's state Medicaid director is out of a job days after it became public that the government health insurance program faces a larger shortfall than previously expected.

State Department of Health and Human Services acting Secretary Al Delia announced Tuesday a shake-up in the agency's leadership that means Dr. Craigan Gray will no longer manage the Division of Medical Assistance. Gray had been on the job since 2009.

Department Chief Deputy Secretary Michael Watson will succeed Gray. Assistant secretary for mental health Beth Melcher will replace Watson.

Delia said late last week that an increase in provider claims would increase the Medicaid shortfall by $75 million.

A department spokeswoman said Gray was not replaced because of the shortfall but because Delia wanted someone with a different perspective.

Read more here:
http://www.charlotteobserver.com/2012/06/19/3328482/nc-medicaid-director-is-out-of.html

18 June 2012

WSJ article: HB1075 & MCO/LME quest for power

Note: highlights, links and italicized quotes are entirely my own mark-up and not reflective of the author nor original posting, link below. Further, while, I usually avoid reading reader comments, I simply had to include the two articulate viewpoints posted at the time of this blog, following the article.

Changes to bill would give more power to groups overseeing mental health services
Published: June 18, 2012
By Richard Craver

[ Original Winston Salem Journal article posted here. ]

A late change to a bill giving more power to groups that oversee behavioral-health services in the state is raising concerns among advocates because the new language allows oversight groups to gain even more authority than the initial bill did.

The changes to the bill would create a new category of oversight group — a behavioral health authority. A BHA could borrow money and buy or sell property, would have no limits on executive salaries and would not be required to have any advocacy group members on its board.

The new language was inserted into N.C. House Bill 1075 on June 11 — five days after the bill had passed the House.

The substitute bill has been put on the Senate's agenda for Tuesday. If approved, the bill would return to the House for review and potential passage.

The changes would allow a local management entity (LME), such as CenterPoint Human Services, to become a behaviorial health authority after three years of serving as a managed-care organization (MCO) under the Medicaid waiver program being rolled out in the state.

The waiver program is intended to combine the management of Medicaid and state funds at the community level to reduce costs and add more accountability. MCOs would operate with fewer restrictions on how they manage the mental-health, developmental-disability and substance-abuse providers and services they oversee.

Becoming a behavioral health authority would take the oversight groups' level of independence to a higher level since public authorities can borrow money and buy or sell property. Authorities have limited or no local government oversight on their overall operations. They are allowed to file lawsuits and have a legal staff.

The initial bill already shifted much of the oversight of an MCO from county commissioners to the N.C. Department of Health and Human Services. The DHHS secretary would be required to approve a group's change to a behavioral health authority.

Local and statewide advocates expressed exasperation when informed of the new language. They worry that past mistakes in state mental-health reform will be repeated, hurting patient care and costing the state tens of millions of dollars in wasted spending.

David Cornwell, executive director of N.C. Mental Hope, said the proposals before the latest change already gave MCOs the best of being a private and a public entity.

"I don't see how it's conscionable for largely clueless legislators to consider such far-reaching changes to an already shattered system at a time the state faces multiple lawsuits over its (behavioral-health) services," Cornwell said.

Controversies over care

The bill is the latest development in the controversial recommendations submitted in September by Piedmont Behavioral Healthcare and the N.C. Council of Community Programs.

The bill's primary sponsors are state Reps. Nelson Dollar, R-Wake, and Justin Burr, R-Montgomery. The bill has bipartisan co-sponsor support.

Senate sponsors of the new language are not identified. Dollar and Burr could not be reached for comment about whether they approve of the new language.

Piedmont Behavioral Healthcare is the only local management entity operating as an MCO, but 11 MCOs, including CenterPoint, are supposed to be operating statewide by Jan. 1.

The council, led by CenterPoint executive director Betty Taylor, wants to eliminate limits on top executive salaries because MCOs compete with private-sector insurance companies for staff with specific expertise. Salary proposals would not require the approval of the DHHS secretary.

The bill removes the requirement that county commissioners approve the hiring of an MCO director, giving that responsibility to the MCO board. Advocates say many LME boards already operate as rubber stamps for their executive directors.

The benefit for county governments, particularly those with tight budgets, is that the changes could limit their liability for MCO overspending and put it on DHHS.

The new language represents substantial additions to those recommended by a 24-member General Assembly subcommittee before the legislative session began in May.

For example, advocates and analysts said they are concerned that although membership on a BHA board is expected to reflect expertise on local needs and priorities, including at least one family member or individual from an advocacy group is suggested only "when possible."

"There appear to be no absolute compositional requirements for the board of a behavioral health authority," said Mark Botts, an expert on mental health records and confidentiality at UNC Chapel Hill School of Government, in an email to advocates.

The initial bill required MCO board seats for a county commissioner, individuals or family members of those with behavioral-health issues, a member of the general public and professionals with expertise in health care.

Botts' email said a behavioral health authority would have even fewer requirements for board composition than in the current statutes or the previous version of the bill.

Laurie Coker, a local advocate who served on the General Assembly subcommittee, said a major concern is whether MCOs will be more responsive to customer demands.

"There have been troubling additions to the original bill on MCO governance," said Coker, who also serves director of the N.C. Consumer Advocacy, Networking and Support Organization.

"We could move toward much more privatized system management, in that public input and responsibility through counties could be cut out altogether from local management. Yet we supposedly are to have a public managed-care system, and not a private one."

Coker said the initial bill reflected agreements derived from "a level of critical discussion rarely had in committee meetings that involve such a variety of perspectives.

"North Carolina doesn't need further complication and confusion added to our already substantial system change. We need the inclusion of consumers, family members and county officials to ensure best outcomes locally."

Worries about unknowns

Al Delia, acting DHHS secretary, acknowledges that patients and caregivers are worried about the unknown. He said LMEs must clear several hurdles with state regulators before managed care is instituted, and mistakes are being fixed.

"DHHS believes this amendment represents a substantive change and that it deserves more thorough discussion," said Julie Henry, DHHS' acting director of public affairs.

"We are concerned about the limits the measure places on DHHS' authority and oversight. The amendment would exempt BHAs from provisions of the state mental health statute."

In an exchange reported by the Associated Press, Sen. Jim Davis, R-Macon, said "this whole thing scares me to death" during a discussion of the House bill before it was referred to the committee on mental health and youth services. The discussion, which lasted several hours, appears to have taken place before new language was inserted.

If lawmakers struggle with this bill, Davis asked, "How are we going to take care of the folks that this governance is supposed to be protecting?"

Dollar told Davis turning back now is a mistake.

Otherwise, Dollar added, "You're almost going to doom this iteration of reform to failure, and I would just submit that we cannot afford to do that for the citizens of this state."

Several legislators serving the Triad said the complex nature of creating a BHA will require more time to understand than the current short legislative session will allow.

Dave Plyler, a Forsyth County commissioner who has paid close attention to local behavioral-health issues, said, "Legislators appear badly divided with no sense of what needs to be accomplished. One size does not fit all."

The changes to the bill come as CenterPoint is requesting $1.53 million from Forsyth County to help with its estimated $3.7 million cost of transitioning to a Medicaid waiver program.

CenterPoint receives taxpayer funding as a local management entity in Davie, Forsyth, Rockingham and Stokes counties.

Without the allocation — to be paid back over five years — the agency warned it would cut its discretionary funding for services in Forsyth by about 42 percent. The agency also wants one-time funding of $228,579 from Rockingham, $148,127 from Stokes and $89,270 from Davie.

CenterPoint's first MCO application was rejected in July, primarily because a health-care consultant, Mercer, questioned the agency's financial liquidity, information technology and clinical operations. Mercer recommended CenterPoint pursue extra funding from the counties it serves and alternative sources. CenterPoint's second application was approved in October.

Advocates worried about the threatened service cuts at a time when more people with behavioral-health issues lack insurance.

Although the counties provide about $5.3 million annually, they do not, by state statute, have a say in how the money is spent.

"In an already underfunded system, a further reduction compounds the unmet needs," Taylor said in a statement.

However, at a May board meeting, Forsyth commissioners had too many questions about CenterPoint finances and legislative changes to decide on the funding request. Forsyth County Manager Dudley Watts said the board is working on finding a time for a briefing session on the issue in June.

Reader Comments
Marsha Hammond · University of North Texas
HOW IS IT THAT FEDERAL AND STATE MONIES ARE BEING USED TO CREATE EVER MORE PRIVATIZED PUBLIC ENTERPRISES SUCH AS THE LME-MCO'S, THE OLD COMMUNITY MENTAL HEALTH CENTERS?
What an important piece of news coverage and its coming right at the time when most providers are being denied or have refused to be recredentialed by the LME-MCO's, the old community health centers, as the Medicaid Waiver moves across the state in order that they continue to see Medicaid patients who have serious mental illnesses. For the population at large, this means people who could be dangerous or at least suicidal, roaming the streets due to no mental health treatment.

Can you say: Virginia Tech? Can you say: going postal? This is a public health dilemma, make no mistake about it. This is not an exaggeration. Yet, there will be no one clearly to sue when that happens and the real culprits will be the LME-MCO's who have further mismanaged Medicaid-----FEDERAL AND STATE ------monies.

For God's sake, Smoky Mountain Center (SMC) LME-MCO has a lobbyist. Where do they hide that in their accounting data? How is it that an entity funded by tax dollars has a lobbyist to protect its own interest? Here he is and he is registered with the state: Name: Joseph H. Lanier Address: PO Box 30519 Raleigh, NC 27622-0519 Phone: (919) 329-3871 http://www.secretary.state.nc.us/lobbyists/Lobbyist.aspx?PId=9039109.

And all this is taking place w/ the state legislature looking on, scratching their heads, being fed a wagonload of 'if you don't' stories by Piedmont Behavioral Health's LME-MCO (pbh) CEO Betty Taylor who wants a big fat raise for herself---an undisputable raise. And that LME-MCO is the one that started all this Medicaid Waiver stuff 5 years ago. And now it has spread like the bubonic plague across the state with officials at DHHS looking on the matter as a way to further distance themselves from the mess they created when the NC State Legislature passed a NC Mental Health Reform law in 2000.

So, how does all of this relate to the Medicaid Waiver, which has been hoisted onto the LME-MCO's, the old community mental health centers, and is now moving step-wise across the state. Bear in mind that the purpose of the Medicaid Waiver, which was FEDERALLY allowed (we are talking about FEDERAL TAX DOLLARS HERE----not private insurance all the while the proposal is about a hostile take-over of FEDERALLY MANAGED ENTITIES) is to allow the LME-MCO''s to more efficiently manage their capped Medicaid $$.

Anything BUT efficiency iis what has taken place over the past year. Please refer to my multiple interactions with Smoky Mountain Center LME-MCO and Western Highlands Network LME-MCO over the past six months at my blog, http://madame-defarge.blogspot.com/, the purpose of which is to document the profound difficulties of working with these organizations. They have little accountability, are poorly organized.

The independent Mercer Reports have re-emphasized this time again and they are not even looking at any comments or feedback from providers or impacted citizens with mental health challenges. The Mercer Report is simply going into the LME-MCO and saying, 'show us what you've got.' What kind of report is that? Do they not understand that the LME-MCO will be putting its very best foot forward under such perusal?

Providers, you know, the ones who actually do the work of helping people who are suicidal and homicidal, have absolutely no representation anywhere at any table regarding even basic matters like the re-credentialinng process of providers who are already credentialed and licensed and have been seeing Medicaid clients FOR DECADES. And so, providers have done what any underrepresented group would do: OPT OUT. GONE. Refusing to take Medicaid. Sat down at the front of the bus, if you're like me: refusing to give up your seat.

We're not talking about a few citizens w/o mental health coverage. We are talking about 80,000 Medicaid recipients under WHN LME; 130,000 Medicaid recipients are SMC.

For January, 2012, WHN LME-MCO presented data at its monthly board meeting that only FIVE PERCENT of those 80,000 people had received mental health services.

Assuming that this trend will continue, this means that most of the FEDERAL AND STATE MONIES is being used to pay the fat salaries of the likes of Betty Taylor and the employees at the LME-MCO's who push paper around and standardly have salaries of 50 grand/ year w/ benefits.

Is THIS how the citizens of NC wish to have their tax dollars used? Isn't it supposed to be used to provide mental health services to people in need? Don't citizens deserve providers who are well credentialed with doctoral degrees who studied years in order to become experts on human behavior?

We may not be on Wall Street, but this is very much a Wall Street fat-cat CEO demanding---and getting it-----unlimited amounts of money in order to create a world and domain that has nothing to do with what it is supposed to be doing. There's not just one elephant in this room: there's an elephant at every LME-MCO in this state now: monkey see no evil, monkey do no evil.

Will NO ONE in the NC State Legislature rebutt this bill whose intention is simply to increase the inefficiency of the LME-MCO. For inefficiency is directly related to non-accountability and the very fact that things have been allowed to get this far----WHEN WE'RE TALKING ABOUT THE USE OF FEDERAL AND STATE TAX DOLLARS-----is indeed, 'scaring me to death', just like the NC State Legislator stated.

Marsha V. Hammond, PhD, Licensed Psychologist, Asheville, NC.
NC Mental Health Reform blogspot since 2007: http://madame-defarge.blogspot.com/.
          ------
Pamela Jarrett · Appalachian State University
Letter to the Editor:
The article by Richard Craven in Monday's Journal does not do justice to the depths that the mental health bottom feeders can sink to regarding the care for mentally ill and mentally disadvantaged people in this state. It chills me to think of LMEs gaining yet even more power locally and regionally to charge up huge amounts in Medicaid and Medicare funds, but they are following the hospitals of the state who charge enormous fees for emergency or patient care, yet are not accountable to patients or families.

The person seeking help at the street level is still facing stigma, often poverty, lack of mental health education, and 19th and early 20th century treatment. I have personally been treated in a rural hospital with isolation as a salve for my depression, and have seen people put in four-point restraints for being psychotic while waiting for a hospital bed. It is impossible to find a psychiatrist or psychologist in my county (Swain) or in the neighboring counties (Jackson, Macon and Graham).

There are no longer any civil rights attorneys in the state to keep a check on whether patients are granted even their basic Constitutional rights, as the state created a state agency for them under DHHS some years ago. All the good civil rights attorneys now protect the state against lawsuits, and humbly do not answer questions the public may have about some terrible medical abuse, citing a 'conflict of interest.' One cannot even get a referral to an outside attorney who might consideryour case.
So, now the LMEs get to magically transform into entities that are impervious to local government, and who will act without oversight by the state, as the local hospitals do now. They will even have their own lawyers, who I am sure will be well paid, but out of what funds--Medicaid or Medicare?
I see only doom and gloom ahead for the mentally ill in NC. I guess it will take a few people dying before this autocracy will start being responsible to the government. It will take a few more dying before we begin to see government oversight and a responsive legal system.
Pamela Jarrett, M.A., J.D.

N&O article: Thing$ that make$ U$ go Hmmm...

Notehighlights, links and italicized quotes are entirely my own mark-up and not reflective of the author nor original posting, link below. 

Costs soar for updating NC's Medicaid computer system
PUBLISHED SUN, JUN 17, 2012 02:25 AM
BY JOSEPH NEFF - JNEFF@NEWSOBSERVER.COM

[ Original News and Observer story here. ]

RALEIGH  In a bland office park off Lake Boone Trail, two computer teams toil away on behalf of the biggest contract in state history – the computer system that processes 88 million Medicaid claims each year.

The 500-plus team of workers from Computer Sciences Corporation, a tech company from northern Virginia, is working to finish the new system by next summer. Upstairs, 200 workers from Hewlett Packard, the technology giant from California, keeps the old 1980s-era system running, receiving, auditing and paying about 250,000 claims each day.

The project has gone in fits and starts since it began in 2004: cancelled and rebid, then amended and extended. Costs have kept rising, so much so that the expense of setting up the new system and running it for seven years, plus maintaining the old system, now adds up to an eye-popping figure: $851 million.

And that’s if it goes on line next summer, as scheduled.

Little in this project has gone as scheduled. The first contractor was dismissed, only $16 million into the work. The second, CSC, is two years behind its original timeline. In the world of information technology, the delays and overruns earn it the title of a “black swan” project.

Most of the delays and cost increases come from changes in federal and state laws and regulations, according to Al Delia, secretary of the state Department of Health and Human Services. He likened it to a home construction project where the owner asks the builder to add a second floor and garage midstream.

“Most of what have been called cost overruns aren’t really cost overruns,” Delia said.

In the long run, state officials say, the new system has the potential to save the state hundreds of millions of dollars. Along with processing claims for Medicaid – the government health care plan for the poor and disabled – the contract requires the system to be able to process claims from other payers, such as the State Health Plan or the state prison system.

“We expect this will be cutting edge, state of the art,” Delia said.

If so, it will be an unusual cutting-edge system: it’s largely written in COBOL, a computer language developed in the 1950s that is scarcely taught in North Carolina – just community colleges in Hickory and Charlotte. CSC has imported workers from India to fill the jobs in Raleigh.

Legislators wonder if state officials will ever be able to get the project finished.

“The $640 million question is, will the Medicaid system operate as billed?” asked state Rep. Nelson Dollar, a Cary Republican who co-chairs a committee that oversees DHHS. “We are skeptical until we see it.”

CSC declined to answer questions, but released a statement saying the project would be completed on time and within budget: “This new system will enable the State to better manage costs, improve healthcare administrative efficiency and enhance customer service for healthcare providers and recipients.... We are focused on delivering a high performance healthcare system that meets the specific needs of North Carolina and its constituents.”

High hopes

In 2003, the state solicited bids to replace the outmoded Medicaid claims system, which had been operated for 35 years by EDS, a Texas company later purchased by Hewlett Packard. Millions of lines of computer code power the program, which accepts claims from some 70,000 providers – doctors, clinics, hospitals, nursing homes and others.

It’s a big business: the Medicaid program will cost nearly $13 billion in North Carolina this year, about 23 percent from state funds and the rest federal. The new system is designed to detect fraud and avoid waste.

Federal tax dollars pay for 90 percent of the design of the new program and half of its operating costs.

There were high hopes in 2004 when the state gave the $171 million contract to Affiliated Computer Systems to replace the 1980s system.

The project “continues to forge ahead with great expectations,” according to a 2005 letter from Angeline Sligh, the director of the project. “It is our goal that this be one of the best replacement implementations in the nation.”

The project soon fell behind, with DHHS officials and ACS arguing over timeline and payments, each blaming the other for the mess. In May 2006, State Chief Information Officer George Bakolia threatened to kill the project unless the two sides could resolve their differences and come up with workable plan. Bakolia demanded new project managers at DHHS and ACS.

In July 2006, the state cancelled the contract, and eventually paid ACS $16.5 million, partly for work, partly to settle a lawsuit.

The state replaced its project managers, who run the program day to day. Their supervisors – Sligh and her boss, Assistant Secretary for Finance Dan Stewart – remained on the job.

An extension, a picnic

Round two began in 2008, when the state awarded a $265 million contract to CSC, with a go-live date of August 2011.

The contract sparked a fierce fight. HP, which runs the 1980s system, was a bidder on the new contract and protested on technical and political grounds: CSC had retained former DHHS Deputy Secretary Lanier Cansler as a lobbyist. Weeks after the contract award, Cansler was named DHHS secretary by Gov. Bev Perdue.

Stewart denied the protest.

In its bid documents, CSC estimated that 90 percent of the millions of lines of computer code needed could be copied from its New York Medicaid program. CSC later revised that to 73 percent; in the end, because of big differences between the New York and North Carolina Medicaid programs, only 32 percent of the New York code was used.

The program soon fell behind, and in the summer of 2010 CSC asked for an extension. Following a lengthy negotiation, the state granted an 18- to 22-month extension and raised the contract price to $495 million.

CSC celebrated the amended contract with an invitation to a July 28, 2011, picnic at Umstead Park: “Please plan to join us for BBQ and Indian Cuisine! It will be a great time to get to know your co-workers as well (as key CSC and DHHS) executives. You might even have the chance to challenge them to a game of bean bag toss or horseshoes!”

Delia, who became DHHS secretary in February, says CSC added six months of delay by overestimating how much code it could bring from New York. The company agreed to pay the state $10 million in damages, an amount criticized as unsubstantiated and low in a subsequent state audit.

The rest of the delay, Delia said, stems from changes in federal and state laws and regulations, and was out of the control of DHHS.

A January report from State Auditor Beth Wood questioned the six-month figure, saying that DHHS did a poor job of documenting how it made key decisions: determining the six-month delay; calculating the damages owed by CSC; and tracking $30 million in unauthorized changes that CSC made in the program.

The audit was contentious from the start. Stewart told Wood that his staff was too busy to answer questions and provide documents. Their cooperation “will, by necessity, be minimal due to the lack of staff time, the urgency to complete the project and the liability related to delaying the IT contractors working on the project.”

The department’s response, twice as long as the audit, disagreed with virtually every paragraph, calling the audit biased, inaccurate, unproductive, ill-informed, unfounded and asinine.

Wood called the audit the most difficult of her career.

“It was the most uncooperative, dragging-the-feet, missing-deadlines audit like I’ve never seen,” she said.

During a hearing in January, legislators looking into the project asked Angie Sligh to grade her management of the contract. She gave herself an A.

Writing in COBOL

The audit did not touch on the fact that the state contracted in 2008 for a program written in COBOL, a computer language written in the 1950s. According to Bakolia, the former state chief information officer, COBOL is used in banking, transportation and federal systems that have been in use for decades, but it is almost never used in new systems.

“If the programs are written well and operate, companies don’t want to rewrite them,” Bakolia said. “If I were to write something today, it would not be COBOL. You can’t support it.”

In North Carolina, classes in COBOL are as popular as 8-track tapes. Wake Tech’s extensive computer science offerings don’t have COBOL, and neither does N.C. State.

Frank Mueller, an N.C. State computer science professor, said the supply of COBOL programmers is dwindling as people retire.

“As a consultant to any company, I would probably advise them against using COBOL,” Mueller said. “The problem is that it’s harder to find someone to change the code. If you change the law, you have to change the code.”

Asked about COBOL in an interview Thursday, Stewart said: “This is the first time I’ve ever heard that question raised.”

To fill the jobs, CSC recruited heavily in India – over half the staff, according to CSC workers who asked to remain anonymous out of fear of being fired. CSC did not respond to questions about foreign workers.

Stewart said he had no idea about the staff makeup.

“I have never seen their staff,” he said.

Delia said it is not an issue.

“It’s a private company, we have no way of knowing,” Delia said. “They are legal workers, it’s kind of a non-question.”

After working through a tough audit, firing a contractor and enduring multiple extensions, state officials have now turned their attention to another participant in the project: their own watchdog.

They are threatening to fire Maximus Inc., the Virginia firm paid to police the project for the state. Maximus, nearing the end of a three-year contract, is paid $1 million a year.

Neff: 919-829-4516

16 June 2012

N&O article re: 75M Medicaid Budget Shortfall

Medicaid budget to come up $75M short
Published Fri, Jun 15, 2012 07:45 PM
By Lynn Bonner - lbonner@newsobserver.com
Published in: State

[ Original News and Observer article here ]

Legislators learned this week that the Medicaid budget would show a bigger than expected shortfall this year, just weeks after they passed a law they thought would solve the problem.

Medicaid claims paid June 12 were much higher than expected, said Al Delia, state Department of Health and Human Services acting secretary, costing the state about $25 million more than anticipated. The state has to pay two more rounds of Medicaid provider claims before the fiscal year ends, leading the office to project that the Medicaid budget will come up about $75 million short. Claims were higher than expected in the previous two payment cycles as well, Delia said, but the increases were smaller. Legislators were kept apprised of the increases and were told this week of the trend, Delia said.

Medicaid is the biggest wildcard in the state budget, with costs for the government insurance for the poor and disabled routinely higher than projected. The legislature a few weeks ago passed a law to fill a $205 million Medicaid budget shortfall for this year.

Delia said health-care provider claims tend to dip at this time of year, so the increase surprised Medicaid and state budget officials. The uptick resulted from providers filing claims at a faster clip, Delia said. The bills can be covered with temporary transfers from other state accounts, he said.

“Providers will be paid,” Delia said. “Services will continue.”

State Rep. Nelson Dollar said legislators are ready to work with state administrators to solve what he called a “cash flow problem.”

“They may need to move funds from one area of the budget to another so they can pay those obligations in the current fiscal year,” said Dollar, a Cary Republican.

Legislators asked state administrators to investigate the cause of the higher claims, Dollar said, but they do not think this month’s spike in bills portends higher than anticipated costs next year.

Bonner: 919-829-482