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Crossroads feels sting of budget cuts
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Published: October 21, 2009
The status of several programs provided by Crossroads Behavioral Healthcare remains uncertain as management tries to cope with a $329,000 deficit in its service budget.
The local management entity for mental and behavioral health in Iredell, Surry and Yadkin counties cut programs such as child and adolescent day treatment, child and adult community support and developmental therapies from its benefit plan when budget constraints forced the state to remove $2.3 million from Crossroads' expected funding this year.
The North Carolina Department of Health and Human Services returned $15 million of the $55 million cut from community mental health, developmental disabilities and substance abuse services last week. That closed Crossroad's initial $800,000 deficit by $471,796, said David Swann, area director and CEO of Crossroads Behavioral Healthcare.
"It's a very good thing and it mitigates the impact, but it doesn't solve all our problems," he said. "It doesn't relieve any of our citizens who are going to lose services."
The combined total for Crossroads' service and management budgets is about $26.7 million this year, down from the $29 million originally approved before July 1.
Crossroads Communication Director Catherine Arnold said Crossroads is still trying to balance its budget after the state legislature cut mental health funding in August.
"We are going to look at the budget now and see what services can be restored," she said.
Swann said the total budget impact was more like $5.5 million. Crossroads used $3.6 million from its fund balance, which is like a savings account, to offset some of the cost of expanding services in fiscal year 2008-09.
"Some people are not going to understand why their services were reduced," Swann said. "You have to understand the significance of a $5.5 million reduction. What we invested last year that was one-time money."
He said he knows customers will be disappointed, but there were some programs he couldn't keep active without the additional funding.
Crossroads officials were careful about making sure the service reduction came across the board, Swann said. It will not be providing money for new contracted services. He said his staff has sliced its small pie up, and all contractors have to work with their portion.
According to a letter from Swann to providers and consumers, Crossroads will continue providing screening, triage and referral; however, it will not authorize state funds to augment services for consumers with Medicare or private insurance effective Nov. 1.
Swann said he hopes to find another type of savings to fill in the gap.
State-funded services removed from benefit plan:
—Day treatment (child/adolescent);
—Community support (child/adult);
—Developmental therapies;
—Diagnostic assessment (MH/SA);
—Non-Medicaid individual providers;
—Guardianship contracts: Guardianship to be provided by Crossroads Customer Services;
—Hourly and community respite;
—Intensive in-home care;
—Personal assistance;
—Personal care;
—Room and board: No state funding included in any contracts for room and board;
—Supported employment: Effective Oct. 1 rates will be reduced by 50 percent for group and individual;
—Multisystemic therapy;
—Child Residential Levels II, III and IV; and
—Targeted case management
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