HomeMy WebLinkAboutAgenda - 06-19-2012 - 5rORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 19, 2012
Action Agenda
Item No. 5-r
SUBJECT: Joint Resolution Approving Dissolution of Orange Person Chatham (OPC)
Mental Health, Developmental Disability and Substance Abuse Authority
DEPARTMENT: County Manager's Office PUBLIC HEARING: (Y /N) No
ATTACHMENT(S): INFORMATION CONTACT:
Gwen Harvey, Assistant County Manager,
1. Transmittal Letter 245 -2307
2. Resolution Judy Truitt, OPC Director, 913 -4000
Steve Yuhasz, Commissioner, 245 -2130
PURPOSE: To consider a joint resolution officially dissolving OPC and establishing the area
authority comprised of a fifteen county catchment area - Cardinal Innovations Center known as
PBH.
BACKGROUND: The chronology of events leading to this final action are detailed in the
attachment from OPC Director Judy Truitt.
The OPC Area Board held a public hearing on June 11, 2012 regarding the dissolution of OPC.
Comments received from the public will be forwarded or presented to the BOCC at the meeting
on June 19.
The new managed care model under PBH is strong and tested. The OPC Area Board requests
the Orange County BOCC approve the resolution to dissolve. The Person County and
Chatham County Boards of Commissioners will consider similar resolutions.
A Community Operations Center will oversee local providers to serve the needs of Orange
County residents, operating under the existing name, OPC Community Operations Center.
Funds appropriated by the BOCC to OPC in the FY 2012 -13 budget will remain under local
control for re- investment in care for Orange County residents through local providers. Many
current OPC staff members will remain in positions of leadership and managerial responsibility,
providing continuity to Orange County stakeholders.
Commissioner Steve Yuhasz, most recently representing the BOCC to the OPC Board, has
played an integral role in the years' developments - helping to evaluate and negotiate the
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intricacies of dissolution, and creation of a new governance structure at the local (county) and
corporate (regional) level.
Terms of the PBH agreement will establish a regional board consisting of 13 members — One
(1) representative from each Community Oversight Board (County level); Two (2) at -large
County Commissioners from among the counties; One (1) representative from a local Client and
Family Advocacy Committee elected from the region; and Six (6) members with special
expertise in healthcare, insurance, finance, behavioral health and other professions; i.e., legal
and human resources.
FINANCIAL IMPACT: The County Manager has recommended the total amount of $1,370,973
in the FY 2012 -13 operating budget. This funding level is unchanged from FY 2011 -12.
RECOMMENDATION(S): The Manager recommends the Board adopt the resolution of
dissolution and authorize the Chair to sign.
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AGENDA ABSTRACT
Meeting Date: June 19, 2012
Agenda Title: Joint Resolution Approving the Dissolution of Orange
Person Chatham Mental Health, Developmental Disability and Substance Abuse
Authority and Establishment of an Area Authority for the New Fifteen County
Catchment Area
Summary of Information: On June 23, 2011 House Bill 916, 2011 N.C. Session Laws
264, was enacted by the North Carolina General Assembly, which required both
implementation of a statewide 1915(b) (c) Medicaid waiver for the public mental
health system, as well as consolidation of existing area authorities based on total
population. In the late spring of 2011 OPC's Area Board, as well as the Boards of
County Commissioners in Orange, Person & Chatham Counties, voted to move
forward in negotiations with PBH, the area authority serving Cabarrus, Davidson,
Rowan, Stanly and Union Counties. Since that time Alamance, Caswell, Franklin,
Granville, Warren, Vance & Halifax counties have joined with PBH.
On March 22, 2012 the Orange County Board of County Commissioners approved
the Joint Resolution of the Boards of County Commissioners of Alamance,
Cabarrus, Caswell, Chatham, Davidson, Franklin, Granville, Halifax, Orange, Person,
Rowan, Stanly, Union, Vance and Warren Counties, which created a new area
authority known as Cardinal Innovations Healthcare Solutions, with a total covered
population of 1,442,8989.
On April 1, 2012 the Medicaid waiver was opened in Orange, Person and Chatham
counties and a local community operations center was established. The
community operations center has responsibility for managing local provider
relations, consumer affairs, community relations, housing, system of care, quality
management, and care coordination for all age and disabilities. The corporate
offices in Kannapolis will manage screening, triage & referral, claims processing,
financial management, human resources, information systems, and specialty
operations support. Community operation centers will operate under their existing
name, i.e. Orange, Person and Chatham counties will be known as the OPC
Community Operations Center.
On June 1 1, 2012 the OPC Area Board held a public hearing regarding the
dissolution of Orange Person Chatham Mental Health, Developmental Disabilities
and Substance Abuse Authority.
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Recommended Action: OPC believes that this model is strong and will create the
greatest opportunity for successful implementation of a managed behavioral
healthcare system for our three counties. The OPC Area Board requests that the
Orange County Board of Commissioners approve the resolution to dissolve Orange,
Person, Chatham Mental Health, Developmental Disabilities and Substance Abuse
Authority and establish an area authority for the new fifteen county catchment
area.
Submitted By: Judy R. Truitt, Director
RCS- aOta - O(o 1 A*achme T� a s
Board of Commissioners of Orange County
Joint Resolution Approving the Dissolution of
Orange Person Chatham Mental Health, Developmental Disabilities and Substance
Abuse Authority and
Establishment of an Area Authority for the
New Catchment Area
June 19, 2012
WHEREAS, House Bill 916, 2011 N.C. Session Laws 264, was enacted by the General
Assembly of North Carolina effective June 23, 2011, and requires that the 1915(b)/(c) Medicaid
Waiver Program be completed statewide by July 1, 2013, and that each LME by such date shall
have a minimum population of at least 500,000 within its catchment area, and further requires
that all local management entities ( "LMEs" or "LME ") meet certain additional deadlines to
participate in the waiver by either merging with other LMEs or entering into interlocal
agreements with other LMEs; and
WHEREAS, the provisions of N.C. Gen. Stat. § 122C -115.3 govern the dissolution of an area
authority, and said statute requires that a county demonstrate prior to the dissolution of an area
authority that continuity of services will be maintained; and
WHEREAS, Orange Person Chatham Mental Health, Developmental Disabilities and Substance
Abuse Authority d /b /a OPC Area Program ( "OPC "), is currently established as a multi- county
area mental health, developmental disabilities, and substance abuse authority and LME serving
the counties of Orange, Person and Chatham ( "OPC Catchment Area "); and
WHEREAS, PBH is currently established as a multi- county area mental health, developmental
disabilities, and substance abuse authority, LME and Managed Care Organization ( "MCO "); and
WHEREAS, Five County Mental Health Authority ( "Five County ") is currently established as a
multi- county area mental health, developmental disabilities, and substance abuse authority and
LME serving the counties of Franklin, Granville, Halifax, Vance and Warren; and
WHEREAS, OPC entered into a Management, Merger and Dissolution Agreement dated April 1,
2012, by which PBH was given the duty to perform the obligations under OPC's Contract #206-
010, executed October 1, 2011, between OPC and the North Carolina Department of Health
and Human Services for the period from January 1, 2012 through June 30, 2012, which further
called for the three counties which currently comprise the OPC Catchment Area to jointly
establish with PBH and Five County an area authority for Alamance, Cabarrus, Caswell,
Chatham, Davidson, Franklin, Granville, Halifax, Orange, Person, Rowan, Stanly, Union, Vance,
and Warren Counties ( "New Catchment Area "), and at that time to dissolve OPC, in accordance
with the terms and conditions of the said Management, Merger and Dissolution Agreement by
and between PBH and OPC dated April 1, 2012, and with the approval of the Secretary of the
N.C. Department of Health and Human Services; and
WHEREAS, consistent with the legislative mandate, PBH, an MCO and area authority acting
pursuant to Chapter 122C of the North Carolina General Statutes, has been approved by the
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State of North Carolina to operate as an LME /MCO under North Carolina's 1915(b)/(c) Medicaid
Waiver Program to serve the New Catchment Area as a single prepaid inpatient health plan for
mental health, intellectual /developmental disabilities and substance abuse services, effective
July 1, 2012; and
WHEREAS, the Boards of County Commissioners of Orange, Person and Chatham Counties
have previously approved OPC's entering into the Management, Merger and Dissolution
Agreement with PBH, and approved by joint resolution the establishment of PBH as an area
authority for the New Catchment Area, as of July 1, 2012; and
WHEREAS, OPC, PBH and Five County have jointly and separately recommended to their
respective constituent counties a consolidation of those three distinct area programs into one
single Area Authority, LME and MCO accountable to the counties of the New Catchment Area;
and
WHEREAS, the Board of Commissioners of Orange County finds that the dissolution of OPC
and the consolidation of its operations with those of PBH and Five County to serve the New
Catchment Area under the 1915(b)/(c) Medicaid Waiver Program is in the public interest and
would better meet the needs of persons with mental illness, developmental disabilities and
substance abuse issues residing'in the region in light of the provisions of 2011 N.C. Session
Laws 264; and
WHEREAS, upon the dissolution of OPC, the Boards of County Commissioners of Orange,
Person and Chatham Counties shall appoint the members of the Community Oversight Board
for PBH in their respective counties to ensure that PBH properly maintains and provides mental
health, developmental disabilities and substance abuse service programs in those counties; and
WHEREAS, if at any time PBH fails to provide any mental health, developmental disabilities and
substance abuse services deemed necessary by said Counties, then the Counties may provide
those services as an in -kind appropriation for purposes of N.C. Gen. Stat. § 122C -115; and
WHEREAS, a notice of the meeting of the Board of Commissioners has been duly published,
and all other legal requirements have been satisfied in order for the Board to approve this
resolution.
NOW, THEREFORE, be it jointly resolved as follows:
1. PURPOSE. In recognition of the fact that pursuant to the Management,
Merger and Dissolution Agreement dated April 1, 2012, PBH has been performing
OPC's obligations under Contract #206 -010 with the North Carolina Department of
Health and Human Services since April 1, 2012, and as of July 1, 2012, PBH will
operate as the LME /MCO in the counties of Orange, Person and Chatham, and OPC
shall be considered to have dissolved pursuant to N.C. Gen. Stat. § 122C- 115.3.
2. PRINCIPAL OFFICE, LOCAL PRESENCE AND COMMUNITY
OVERSIGHT BOARD. The principal office of PBH, under whatever name it shall be
known in the future, is located at 4855 Milestone Avenue, Kannapolis, NC 28081. The
current local offices of OPC will remain at 100 Europa Drive, Suite 490, Chapel Hill, NC
27517 and will become the Local Office of PBH following the Effective Date of the
dissolution and has been identified by PBH and shall continue to be identified as "OPC
Community Operations Center, a division of PBH." The Board of Commissioners of
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Orange, Person and Chatham Counties, shall appoint the members of the Community
Oversight Board for PBH in the OPC Catchment Area to ensure that PBH continues to
properly maintain and provide comprehensive mental health, developmental disabilities
and substance abuse services programs in said counties in accordance with the Joint
Resolution dealing with the governance of the reorganized PBH adopted or to be
adopted by the County Commissioners of all counties represented by the New
Catchment Area.
3. COUNTY APPROPRIATIONS. The County Commissioners of each of
the counties in the OPC Catchment Area may from time to time make, in their sole
discretion, in kind contributions to and adjustments to the N.C. Gen. Stat. § 122C -115
appropriation for mental health, developmental disabilities and substance abuse services
programs taking into consideration the cost of the liabilities to PBH. Said County
Commissioners may elect to provide mental health, developmental disabilities and
substance abuse services programs, the costs of which shall be treated as in kind
contributions to and adjustments to the N.C. Gen. Stat. § 122C -115 appropriation to the
LME /MCO.
4. REPRESENTATIONS OF PBH. The Counties of the OPC Catchment
Area explicitly state that PBH has represented to said Counties that it shall continue at
all times to use its best efforts to deliver high quality mental health services to all
residents of the OPC Catchment Area within existing finances on and after July 1, 2012.
Other terms of the consolidation of Five County with PBH are set forth in the
Management, Merger and Dissolution Agreement entered into by and between PBH and
OPC, dated April 1, 2012, which terms are hereby incorporated by reference into this
Joint Resolution and are acknowledged and accepted by the Board of Commissioners.
5. AREA BOARD, GOVERNANCE AND FUNCTIONS. The Counties of the
New Catchment Area have adopted or will adopt prior to July 1, 2012, a Joint Resolution
to establish Cardinal Innovations Healthcare Solutions as the new Area Authority as
successor to PBH, Five County and OPC LMEs and to operate as a Managed Care
Organization and Prepaid Inpatient Health Plan pursuant to the 1915(b)/(c) Medicaid
Waver and 42 C.F.R. § 438.2 as of that date. Said Joint Resolution shall, among other
things, set forth the governance and structure of the new Area Board, and the functions,
powers and duties of the new Area Authority and MCO.
6. CATCHMENT AREA. The New Catchment Area for PBH, or by whatever
name it shall be known in the future, as of July 1, 2012 shall be comprised of the
Counties of Alamance, Cabarrus, Caswell, Chatham, Davidson, Franklin, Granville,
Halifax, Orange, Person, Rowan, Stanly, Union, Vance, and Warren Counties.
7. PLAN OF MERGER AND AGREEMENT. The Area Board of OPC shall
enter into a Plan of Merger and Agreement, by whatever name that agreement shall be
known, with the Area Boards of OPC and PBH which shall set forth the terms and
conditions of the consolidation.
8. FURTHER ACTIONS. The Board of Commissioners hereby authorizes
the officers and Area Board of OPC to take any and all actions necessary or desirable to
effectuate this action consistent with this Resolution.
9. COUNTERPART RESOLUTIONS. The Board of Commissioners
understands that the same resolution, or one similar to this resolution in all material
respects, approving the consolidation and dissolution of the LMEs as described herein
has been or shall be adopted by the boards of county commissioners of the other
counties affected by this resolution.
This day of , 2012.
ORANGE COUNTY
In
Chair, Board of Commissioners
ATTEST:
Name:
Clerk to the Board
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