SF Behavioral-Health Provider Gives 30-Day Notice

TeamBuilders, one of 15 behavioral-health companies whose Medicaid funding was frozen by the state Human Services Department after an audit last month, has informed the department and its own staff that it will be terminating its contract in 30 days and discontinuing its services to Medicaid clients.

In a memo to all of its staff, company executives Shannon and Lorraine Freedle wrote:

It is with overwhelming sadness that we must inform you that the TeamBuilders Governing Board met last night to discuss the situation and due to the unexpected complete cut off of funding, under their direction we have today provided 30 day notice of breach and 30 day notice of termination to HSD and United Healthcare/OptumHealth New Mexico, the State’s behavioral health single payer. We have again asked for immediate assistance in transitioning all of you and those you care for to new management so that the vital services we provide will not be interrupted.

Around the state, some of the other providers whose funding was suspended have begun furloughing employees or stopping services.

Last month's audit by a Boston company claims to have found credible evidence of fraud for the 15 providers whose funding was suspended. The report has been handed over to the Attorney General's Officer for possible criminal charges.

The state is in the process of contracting with five providers in Arizona to take over for the companies whose funding was suspended.

Notice to TeamBuilders Staff 07-19-2013 (2)