Ottawa County CMH CEO raises alarm over MDHHS procurement, board readies legal, millage planning

Michael, chief executive officer of Ottawa County Community Mental Health, told the board on Friday, Aug. 22, that the Michigan Department of Health and Human Services (MDHHS) is moving forward with a procurement to restructure Medicaid managed-care functions and that the change could reduce local CMH input into regional management.

The issue matters, he said, because the stateis preparing to name contract managers for Medicaid benefits and a new model could leave local CMHs "providing Medicaid services and not co-managing at all." He said one concrete near-term change is that certified community behavioral health clinic (CCBHC) supplemental payments will begin coming directly from the state to CMHs starting in October rather than routing through a PHP or regional entity.

Why it matters: the procurement could change which organizations administer Medicaid-managed behavioral health in the region, alter cash flow and reduce the decision-making role that local CMHs and their regional entity presently exercise. The Community Mental Health Association of Michigan has asked member agencies for a special assessment to cover potential legal action challenging the procurement; the CEO said he forwarded that request to county counsel and county administrators because the county must decide whether it will participate financially in any lawsuit.

Board conversation and next steps - The CEO said the MDHHS procurement is still evolving and emphasized that CMHs will continue to provide services regardless of the outcome. "We're not going anywhere," he told the board. - He said CMH staff have held recorded community/provider briefings and will host an informational "Did You Know" session on Sept. 5 featuring Alan Bolter of the board association to explain the procurement and answer questions. - The CEO said he sent the associationrequest for a legal assessment to county corporate counsel and the county administrator because any CMH contribution to litigation would need county approval; he described the requested assessment as modest and similar to the organizationannual dues level.

Operational and governance items tied to funding - The CEO reported that moving the CCBHC supplemental payments to a direct state-to-CMH flow could speed revenue timing, improving the agencyability to predict available funds. - He told the board the finance committee had reviewed provider scorecards and contract renewals; the boardfinance chair reported 11 amended/renewed contracts and four new contracts had been reviewed in committee. - The CEO described internal organizational changes led by the chief operating officer, including an operations team overseeing electronic medical record implementation, onboarding automation and a provider scorecard project. He also said the agency passed a Lakeshore regional entity site review with high compliance scores and no plan-of-correction items.

Millage renewal planning - The CEO said staff have begun planning a public-facing review of the county millage that funds local services, to document outcomes and prepare renewals well before the next election cycle. He said quarterly millage reporting will be built into committee updates and that staff will analyze per-participant cost and program outcomes to inform voter messaging.

Board chairannounced executive director review - The board chair reported the executive directorannual review had been completed by the executive committee using anonymous board input. The chair said the directorreceived an aggregate score of 4.78 on a 1to—5 scale, where 3 indicates meeting expectations and 5 is exceptional.

What remains unresolved - The CEO repeatedly cautioned that the procurement is still in process and that advocates and CMHs are seeking clarifying information from MDHHS about scope, responsibilities and the final procurement outcome.

Ending - The board scheduled additional outreach and informational sessions for the public and providers, and the CEO said he will continue reporting developments to the board and the provider network as new information becomes available.