When an organization that some hoped would help lead the way in mental health-care reform hits its own financial struggles, there can be no doubt the system is in need of more reform. The state legislature should continue to push that process when it convenes this month. Some of the state's most vulnerable residents are going without the care they need.
New River Behavioral Healthcare, which began experimenting with a new financing model more than a year ago, is reporting an operating loss of more than $1.5 million. New River, one of two public providers of mental-health care in the state, serves several counties in Northwest North Carolina from its base in Boone.
New River can still work out its problems, and we hope it does. The loss was covered by New River's fund-balance reserves. The program needs three to five years to see if it can succeed, state officials told the Journal's Sherry Youngquist.
But while the clock's ticking, the state must continue to hammer away at other ways to "reform" its reform of mental-health care in this state. The overhaul of the mental-health-care system shifted the burden for mental-health-care services from state psychiatric hospitals to private community programs. There were numerous failures because of poor planning. The mentally ill have landed in emergency rooms, on the streets and in jail.
Officials in several Northwest North Carolina counties hoped to avoid those problems by sticking with New River, which had long been doing a good job in their area. Local leaders persuaded the state legislature to allow their counties to establish a public provider in their area. New River got the job.
That plan meant that New River was able to hold onto experienced staff. That probably helped ensure that many patients didn't get lost in the shuffle.
New River's financing model was meant to provide a continuous cash flow to support mental-health services in the mountain counties. Demand was high. Reimbursements, however, didn't equal the actual cost of care, officials said. "It's almost impossible to break even on the cost of the basic outpatient services," said Pam Andrews, the chief executive of New River. Basic outpatient services for such essentials as marriage and family therapy were big money losers.
New River is trying to fix its financial challenges through steps such as opening recovery-education centers, where more patients can be seen, in group settings. The provider is looking for other ways to cut costs. Reducing staffing levels and benefits could be considered. But the provider should balance that consideration with the need to attract the best workers possible.
Ultimately, New River might be forced to reduce services to clients to cut costs. Let's hope it doesn't come to that. Northwest North Carolina needs this organization to provide quality service -- especially since the state is a long way from correcting all the flaws in the mental health-care system.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement