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PREFACE <br />FROM THE <br />NORTH CAROLINA STATE AUDITOR <br />This study of the State's psychiatric hospitals was mandated by the General Assembly in Section <br />12.35A of Chapter 213 of the 1998 Session Laws. The General Assembly outlined work to be <br />performed in two broad phases: confirmation and update of previous work done by MGT of <br />America, Inc. on the psychiatric hospitals, and examination and assessment of the overall mental <br />health delivery system for the State. <br />The Office of the State Auditor was asked to oversee this important study by retaining and <br />managing the work of an outside consultant. In late February 1999, we contracted with Public <br />Consulting Group, Inc. (PCG) to perform this work. The interim report for Phase I was <br />mandated to be submitted by May 1, 1999, with the final report due not later than December 1, <br />1999. <br />This report represents PCG's interim findings and conclusions relative to Phase 1, confirming <br />and updating the previous study's recommendations for the State's psychiatric hospitals. While <br />PCG was able to accomplish an amazing amount of work in a very short period, we should <br />caution the reader that this report does not contain firm recommendations as to the number or <br />type of beds needed, nor the proper location for the hospitals. Personnel from the Office of the <br />State Auditor, the Department of Health and Human Services, and PCG agreed that to make such <br />recommendations at this time would be premature. <br />PCG needs time to complete its examination and assessment of the overall mental health delivery <br />system before it can address these fundamental questions. The proper role and use of the State's <br />psychiatric hospitals will depend on the structure of the mental health delivery system. The <br />hospitals are just one component of that system. Therefore, PCG has properly identified <br />potential issues surrounding the hospitals that will need to be reexamined as work on Phase II <br />proceeds. Our goal is to develop a blueprint for the delivery of mental health services in North <br />Carolina. This report is the first step in that process. <br />Respectfully submitted, <br />Ralph Campbell, Jr. <br />State Auditor <br />April 30, 1999 <br />