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LRE responds to MDHHS “Lakeshore Regional Entity Contract Termination FAQs”

Information distributed by the Michigan Department of Health and Human Services regarding its proposal to terminate its contract with the Lakeshore Regional Entity (LRE) is one-sided and is unsupported by the LRE’s own data.

A review of LRE data failed to support claims MDHHS made backing its proposal to cancel the LRE’s contract and highlights the role systemic underfunding has played in the financial issues facing the region.

On June 28, 2019, MDHHS contacted the five Community Mental Health members of the LRE to inform them of its intent to terminate its contract with the LRE and assign management of the region to Beacon Health Options, the current private management partner of the LRE.

Shortly after that contact, MDHHS released a press release and sent formal letters to the LRE and the member CMHs. On July 10, 2019, a member of another PIHP shared a document titled “Lakeshore Regional Entity Contract Termination FAQs” with the CEO of the LRE. This document was produced by MDHHS and shared with a variety of individuals, including legislators, stakeholders, and county officials from the 7-county region. MDHHS did not share the document directly with any member of the LRE or any of the CEOs of the Community Mental Health members of the LRE.

After reviewing the MDHHS Frequently Asked Questions (FAQ) document and comparing it with the LRE’s own experience, it became clear that the FAQ presented a one-sided narrative of the situation in the LRE Region.

You can view the LRE’s response the MDHHS FAQ by clicking here.