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Raleigh based MHA-NC (Mental Health Association of North Carolina) is closing its doors after many decades of advocacy on behalf of persons with mental illness. On Friday Interim Director, Christie Foppiano, said in interviews that the MHA-NC was unable to meet its financial obligations.
MHA-NC advocated for persons with mental illness through participating in state level mental health coalitions, advocating at the NC General Assembly, and by providing information on mental health policy issues to governmental officials, agencies, and the public. Its public face for over 15 years was John Tote, the former Executive Director, who resigned in May.
Tote leaves chaos behind in the wake of revelations that federal tax liens were placed on MHA-NC property as early as 2006. Salaries were cut in half in June as the organization could not meet its payroll, and key staff began leaving to seek employment elsewhere. It is reported that some employees had gone for up to six months with no salary.
Easter Seals UCP of North Carolina will take over operation of MHA's 266 apartments units for people with mental illness and 12 group homes around the state as well as four treatment teams serving 320 patients, the Raleigh News & Observer of reported.
In a statement from Foppiano to the N & O, the Interim Director said, “In the days ahead, MHA will be working to wind up its affairs and close. MHA-NC is disappointed that it is unable to meet its financial commitments and continue to carry out its mission to promote mental health awareness, prevent mental illness and eliminate discrimination against people with mental illness."
Leza Wainwright, Director of DHHS’s Division of Mental Health, Developmental Disabilities, and Substance Abuse Services for the state of NC, said that her division is working to transition clients previously served by MHA-NC to two large agencies, Easter Seals UCP and the ARC.
This is going to be a difficult task, as the MHA’s own web site describes its operations as “broad based and available to all North Carolinians. Some of [its] recovery-model consumer services included Residential Services, Assertive Community Treatment Teams (ACTT), Supported Employment, Psychosocial Rehabilitation (PSR), and Housing.”
In North Carolina services to persons with mental illness are provided through local private companies whose work is managed by Local Management Entities (LMEs), which are quasi-governmental agencies. Local LMEs contracted with MHA-NC to provide services to thousands of clients in many counties. The association lost its accreditation Monday, cutting off the group's access to federal Medicaid reimbursements.
Local MHA affiliates, such as those in Greensboro, Forsyth County, Charlotte, and Asheville, were all making public statements to assure clients and their families that the local affiliates were separate legal entities with separate budgets, and that they would continue to operate independently of the state’s organization.
However, as one former director of the Greensboro MHA pointed out in an email, the Board of Directors of MHA-NC failed to perform its legally required fiduciary function to keep the state organization solvent and its employees paid. At one point the state organization’s operating budget exceeded $2 million a year, yet the Chairman of the Board of Directors, John McKee III, could not even answer a media question about who else was on the Executive Committee.
The first liens for unpaid taxes were filed against MHA in 2006, according to records on file with the state. That same year, Tote received $172,573 in salary and another $43,143 in benefits and pension contributions, according to MHA's 2006 tax return. McKee said that Tote “hid the organization's financial problems.”
How that is possible is difficult to understand, and further revelations and further ramifications for Board members and the former MHA-NC staff, including former ED Tote, are likely to come in the courts. MHA-NC’s creditors and unpaid employees are very likely to seek restitution.
Comments
The Public and All past MHA-NC clients need to know that The Mental Health Association of North Carolina formed an Alliance with Easter Seals UCP just weeks before they went completely under...glub..glub..
Employees were blind sided by being aquired as employees of Easter Seals UCP.
Clients were not even told about this aquisition therefore not given the choice of switching providers or staying.
Mental Health Association of North Carolina now ex-employees are still waiting for their last paychecks AND their accrued vacation payout checks. This is a sizable amount for many frontline mental health workers.
Easter Seals UCP has stated they have nothing to do with what MHA-NC owes their past employees.
Commentary by Frontline MHA-NC employees during the whole Hostile Takeover.
mhafrontline.blogspot.com
To clarify there is a National Mental Health Association and it has affiliates nationwide. There are several MHA affiliates in North Carolina. The Mental Health Association of North Carolina is one the one that lost it's National Accreditation required for Medicaid billing. This affects all of it's programs. MHA-NC broke away from the National MHA a while back.
Not only should MHA be investigated, this alliance between MHA and Easter Seals should be questioned. How does DHHS support moving client from a failing company to one that is not endorsed to provide the services when it is a state mandate that all providers be endorsed for each service they provide. This is in violation of their own rules. Oh, maybe they don't have to follow the rules. Also, one of our basis human rights is the choice of who our provider will be, not these clients, they were not told of this change nor were they given an opportunity to choose. This is a clear violation of their HUMAN RIGHTS. Earlier this week it was reported that a complaint had been filed with the Justice Dept. against DHHS for violation of the American Disabilities Act. Is this not the same thing? These clients are the disabled the complaint was referring, the mentally disabled. And they do have rights. What do we have to do to get someone to pay attention to what is going on with DHHS and our ment
NEPUTISM is the thing that needs to be looked into when discussing this "alliance" between MHA/NC and Easter Seal UCP. Look to the top of Easter Seal chain (CEO) and to the Central Office at MHA for the answer. Talk about a sweetheart deal! Father and Son... WE'RE in THE MONEY, We'RE in the MONEY, We're in the MONEY. CLIENT? We don't care about no stinkin' clients. WE'RE IN THE MONEY. Employees? We don't care about no stinkin' employees. SOME PEOPLE BOOKED AT THE PERFECT TIME...LIKE AS SOON AS THE NEWS BROKE. SMAAAARRT!
I wonder if Leza Wainwright is aware if these mental health clients were given a choice OR EVEN KNOW they are being moved to another agency. Maybe they will get around to it after the fact.
Sorry THAT'S NOT HOW IT WORKS BY THE PRESENT RULES!
No wonder North Carolina leads as one of the most corrupt states because our leaders think they can do just as they please
Easter Seals UCP took over many programs from MHA-NC and many of which they (ESUCP) are not endorsed for and they are using MHA-NC's endorsement (not sure if this is even legal). ESUCP is rushing to get endorsed.
ESUCP formed a phony Alliance with MHA-NC right before MHA-NC went under completley. Employees were blindsided and patients were not even told which is a violation of their rights.
Employees of MHA-NC were aquired by ESUCP yet they have not been paid their last checks and accrued vacation payouts by MHA-NC. ESUCP basically denies any responsibility regarding to this
Here's the real deal, The Mental Health Association of North Carolina associations financial woes were know for a while and that it was getting worse. Last year they were over 8 million dollars in debt. 1.5 million to the IRS.
So they quickly move before they go under to form an Alliance with Easter Seals UCP but it's a shell game. Easter Seals UCP is not even endorsed for many of the services they are taking over AND there are already endorsed providers available.
On top of this they MHA-NC lost their National Accreditation required to bill Medicaid. So we are dealing with ESUCP not endorsed and using MHA-NC's endorsement with the LME's (Local Management Entities) AND MHA-NC officially can't Bill Medicaid now.
These MHA-NC clients also were not informed of this takeover and NOT given the choice to choose other established and endorsed agencies. This make believe Alliance was established to pave the way for The Easter Seals UCP takeover.
Thanks to all for your comments. I do appreciate the clarification on the relationship between MHA (national), MHA-NC (state), and the local organizations. I was not aware MHA-NC had severed itself from MHA. I tried to emphasize that local affiliates have separate boards and will continue to operate.
As to an investigation, I am having a discussion with Rep. Verla Insko and other legislators on that at this time. There has been legislation that should have applied to the MHA-NC because they received state funds and had to pay their taxes to be eligible for those funds. However, the law cannot be enforced, as there are currently no reporting provisions.
The State Auditor, Beth Wood, could do an investigation, but it's probably too late for it to do any good.
NC DHHS needs to clamp down on providers of mental health services, even non-profits, to be sure their finances are sound. Will do a follow-up report as soon as I know more from DHHS and Rep. Insko.
I tried to get help from the mental health dept. in Catawba county. I have never run into such a corrupt bunch of white collar criminals in my life! They almost killed me! I was lied to and refused treatment. They used the promise of treatment as a carrot to try and force me to stop drinking beer. Beer was not my problem. After I was refused treatment by Catawba County's mental health dept. I went to my medical doctor and he diagnosed my depression as clinical and prescribed me an antidepressant, Not a bunch of very expensive (Useless) talk! He saved my life! As for the so called mental health professionals; They all need to be put out of business! From my experience, I think the whole industry is Corrupt! I was used for my insurance policy! My well being was Not their concern! I will never Trust another mental health worker Again!
When small agencies began to apply for CABHA status (the Division of Mental Health's newest mechanism to corporatize mental health treatment in NC)they were told to merge and come back to the table - my agency was one of those so I am speaking from experience not anecdotal hearsay.
When we found not one but two merger partners we were told by the LMEs and the state mental health representatives that we could not merge our service programs together into a new company but would have to go back through the entire endorsement process again which takes at a minimum 160 days because all of the companies did not provide all of the services prior to merger effectively shutting us out of the application process to become a CABHA.
So how is it Easter Seals can take over services from MHA that they did not already have an endorsement for and bill for those services with NC's approval.
This is just shining a small light on the double standard that most small providers in NC live with everyday
If there was an annual audit the debt problems should have been not only found but included as a finding in the audit statement. The board has the responsibility to not only review financial reports monthly but also review the audit and speak with their auditors.
What I also find strange is where is the finance officer in all of this? She/He would have know as well as John Tote about the agency's financial problems and if she/he holds a license it should be revoked.
I have no sympathy for John Tote but there are many players here and they all closed their eyes to this problem and did nothing - why? -because they were a large established agency but I guess the Division is now seeing that large or small no company is "too big to fail".
What happens when we have only about 50 large agencies in the state operating as CABHAs and they start to fail because of budget cutbacks, increased insurance premiums, etc. - all of the smaller agencies are being forced out-where is the safety net?
Easter Seals UCP are dragging their feet in the transition and patients suffer. Why? because they have to get endorsed for the service (when ther are endorsed providers available), they are waiting for MHA-NC to declare bankruptcy to further seperate themselves for MHA-NC obligations like employees money owed and also because they just had a magor reorganization in April and the dust hasn't settled yet. So DHHS's bright idea is have a disorganized and not endorsed organization take over patients when there are agencies that are stable, oraganized and ENDORSED. AGAIN IT IS IMPORTANT TO NOTE THAT NONE OF THESE PATIENTS HAVE BEEN INFORMED AND GIVEN A CHOICE over either waiting while Easter Seals UCP get's organized and endorsed or go to a ready provider. THIS IS A violation OF THE HIPPA PRIVACY ACT and The American Disablity Act.
Jesse Simmons, the information you posted is important, and I believe your comment that health information has been improperly shared violating fed law and that the ADA was violated mean a complaint should be filed. Have you contacted the State's Protection and Advocacy Agency, Disability Rights NC?
DRNC is in Raleigh and has attorneys and advocates specializing in disability rights and law investigations. 919-856-2195
There is so much corruption with this deal between the Mental Health Association and Easter Seals and it should be investigated...in fact ex-employees have begun an ALLIANCE of their own, lawyers are involved and a class action lawsuit is being discussed. The ones at the top are shaking in their boots now because they know jail time is coming for their part in all of this. My parents always taught us not to be involved in corruption...or if we made wrong choices, to be ready to be incriminated as an accomplice. Hear that John, Larry, donna, ed, and all ther rest???
Martha,
I will follow up on that. I appreciate your guidance. I would like to say this isn't motivated by any sour grapes over not being paid by MHA-NC. It is a matter of having a agency that is actually competent in as far as the patients interests go.
It goes deeper than that in that the Local Management Entities are extremely negligent in overseeing the the quality control of all the agencies. Absent is a better description. Lip service is another.
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