Local mental health agencies discuss possible merger

Two area mental health management agencies are considering joining forces to meet state standards.

According to state law, agencies that manage mental health services must serve at least 200,000 people or at least five counties. Alamance-Caswell Local Management Entity, based in Burlington, is not meeting this stipulation.

After its partnership with Rockingham County ended in 2009, Alamance-Caswell approached the Chapel Hill-based OPC Area Program — which serves Orange, Person and Chatham counties — to discuss merging the agencies.

“I think that we have a lot of the same providers, and the communities are a lot alike in that we serve the same types of consumers,” said Debra Welch, interim director of Alamance-Caswell.

If the provider doesn’t meet the requirements by July 1, it could lose its state funding.

The proposed merger would meet requirements and create a client base of 400,000 people across five counties. Welch said the state favors mergers because of their cost-saving efficiency.

“One agency taking care of five counties is more cost-effective than one taking care of two counties and another one taking care of three counties,” she said.

OPC Director Judy Truitt said network size is crucial for organizations that offer mental health services.

“(The merger) would help to prepare for future stability,” Truitt said. “One of the reasons that the state is very supportive is that it does create efficiency and hypothetically you can redistribute funds to provide more service.”

But Truitt also said this efficiency can lead to a decrease in jobs.

“When two area authorities merge, one of the first things you have to decide is who will be the surviving entity,” she said. “It would ultimately mean that some individuals would lose their jobs.”

A final decision on the merger is expected near the beginning of next year. Welch said business discussions, like which group would head the operation and which jobs would be cut, could begin in March if the merger is approved.

Former Chapel Hill Mayor Kevin Foy, who created a mental health task force for the town in 2008, said state mental health services have experienced structural difficulties due to insufficient resources in the private sector during the last decade.

He said that he is skeptical of the proposed merger.

“People are having to do lots of things that I think they hope will lend stability to the mental health system in North Carolina, but a lot of it is just a leap of faith,” he said.

“Consolidation in itself is not bad, but if it’s because of money, then it might not be the right choice.”

Contact the City Editor at citydesk@unc.edu.