NC approves key step for Mecklenburg to drop Cardinal, add new managed care provider

Mecklenburg County now knows the timeline for when it will have a new managed care provider to serve vulnerable residents and finally sever ties with Cardinal Innovations Healthcare.

Mecklenburg is officially transitioning to Alliance Health in mid-December, County Manager Dena Diorio announced in an email Friday that was shared with the Observer Tuesday.

This is a crucial milestone for Mecklenburg, which leveled accusations against Cardinal since before the coronavirus pandemic hit.

County administrators say Cardinal failed to provide adequate or timely access to services for some of Mecklenburg’s neediest residents, which includes individuals with developmental disabilities and substance abuse problems.

The exact transition date for Mecklenburg has yet to be detailed, but the ballpark estimate offers some clarity to the transition schedule. Previously, Mecklenburg officials said the change would occur “as soon as reasonable and as permitted by law.”

Dr. Mandy Cohen, the secretary of the North Carolina Department of Health and Human Services, approved the overhaul for Mecklenburg, Diorio said.

Mecklenburg has repeatedly blasted Cardinal’s faulty handling of emergency placements for children who are abandoned or neglected.

Even after Cardinal developed a plan with the state to curb systemic problems and invested $30 million for child welfare across 20 counties last November, Mecklenburg leaders said they did not see “desired outcomes for improvement.”

Public weighs in on Cardinal

In June, county commissioners unanimously voted to break ties with Cardinal and start the transition process with Alliance, the managed care organization already serving urban communities in Durham Wake, Cumberland and Johnston counties.

At the time, Cardinal CEO Trey Sutten told the Observer he was disappointed by Mecklenburg’s decision. The county’s frustration over foster care services represent just a sliver of Cardinal’s service, he said.

Some county commissioners said Cardinal forfeited the public’s trust and had ongoing transparency issues.

Cardinal was embroiled in scandal in 2017, when a state audit revealed “unreasonable spending” and lavish parties among executives who were later ousted. N.C. DHHS took the unusual step of taking over the organization after Cardinal’s board fired CEO Richard Topping and paid him and three other executives $3.8 million in severance.

Throughout the summer, Mecklenburg sought written public comment on the so-called disengagement process from Cardinal and move to Alliance.

One parent, whose adult child has mental health problems, wrote that Cardinal failed to secure proper placement for him in Mecklenburg or surrounding counties.

“The system has simply eroded,” the parent, who is not identified, wrote. “Imagine your child and family having to face these challenges...”

In a joint comment, the Charlotte Center for Legal Advocacy and the Council for Children’s Rights also backed Mecklenburg’s split from Cardinal. But the groups said they were “concerned about the complexity of this realignment” with Alliance, especially for foster children.

NC counties drop Cardinal

A string of other counties are also abandoning Cardinal, which is now merging with Vaya Health by next spring. As recently as last week, Warren County requested to leave Cardinal.

Dave Richard, deputy secretary of NC Medicaid, detailed the changing managed care landscape in a letter to county managers last week regarding counties served by Cardinal.

▪ Cabarrus, Stanly and Union counties will transition to Partners Health Management by Sept. 1

▪ Forsyth and Davie counties will transition to Partners between Oct. 1 and Dec. 15

▪ Rockingham and Davidson counties will transition to Sandhills Center

▪ Mecklenburg and Orange counties will transition to Alliance

Richard called for a transition across the managed care organizations with “as little disruption as possible” for providers and individuals seeking treatment.

”All parties must cooperate fully in this in this dissolution process, including the sharing of client information necessary to ensure continuity of care,” Richard wrote in the letter, which was shared with the Observer.