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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 5, 2020 <br /> Action Agenda <br /> Item No. 6-e <br /> SUBJECT: Initiating the Process to Disengage from Cardinal Innovations Healthcare and to <br /> Seek Realignment with Alliance Health <br /> DEPARTMENT: County Manager's Office <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1. Administrative Rules Governing Travis Myren, Deputy County Manager <br /> Disengagement 919-245-2308 <br /> 2. Tailored Plan Preference Letter <br /> PURPOSE: To authorize the County Manager to initiate the formal disengagement process <br /> from the County's current Local Management Entity-Managed Care Organization, Cardinal <br /> Innovations Healthcare, and to seek realignment with Alliance Health to administer mental and <br /> behavioral health services for Orange County residents. <br /> BACKGROUND: Local Management Entities — Managed Care Organizations (LME-MCOs) are <br /> public managed care organizations that administer behavioral health services for residents in <br /> need of mental health, developmental disability, or substance use services. The State of North <br /> Carolina is currently served by seven different LME-MCOs divided into regions. Cardinal <br /> Innovations Healthcare currently serves Alamance, Cabarrus, Caswell, Chatham, Davidson, <br /> Davie, Forsyth, Franklin, Granville, Halifax, Mecklenburg, Orange, Rockingham, Person, <br /> Rowan, Stanly, Stokes, Union, Vance and Warren counties. Alliance Health currently serves <br /> Cumberland, Durham, Johnston, and Wake counties. <br /> North Carolina General Statutes and the North Carolina Administrative Code authorize and <br /> prescribe the process through which a County may seek permission to disengage from one <br /> LME-MCO and realign with another. The final decision making authority rests with the <br /> Secretary of the Department of Health and Human Services. The applicable administrative code <br /> is attached as Attachment 1. <br /> The first step in initiating disengagement is providing written notice of the County's intent to <br /> disengage to the Secretary of Health and Human Services, the Co-Chairs of the Joint <br /> Legislative Oversight Committee on Health and Human Services, and the affected counties a <br /> minimum of nine months prior to the proposed effective date of disengagement. This abstract <br /> would authorize the County Manager to send the disengagement notice letter and begin the <br /> formal disengagement process. <br />