McHenry County Blog

With McHenry County Chairwoman Tina Hill labeling Sandra Salgado’s service on the the Public Health and Human Services Committee “The Epitome of Conflict of Interest,” Fox River Grove Republican Precinct Committeeman has written a story entitled,

“The Epitome of Conflict of Interest” – Backroom Politics

Hill bases that characterization on the fact that Salgado works for Pioneer Center and Pioneer Centers gets financial support from the 708 Mental Health Board, whose Board members the Public Health Committee recommends.

[Of course, the last recommendation, Scott Summers was rejected by the Hill followers listed below on the County Board:

[Those opposing the nomination were

• Michele Aavang
• Yvonne Barnes
• Sue Drafkorn
• Joe Gottemoller
• Jim Heisler
• Tina Hill
• John Jung
• Ken Koehler
• Bob Martens
• Mary McCann
• Mary McClellan
• Anna May Miller
• Bob Nowak
• Nick Provenzano
• Ersel Schuster
• Carolyn Schofield
• Mike Skala
• Paula Yensen

In favor were

• Nick Chirikos
• Diane Evertsen
• John Hammerand
• Donna Kurtz
• Sandy Salgado
• Mike Walkup

[And the last recommendation of Donna Kurtz' Committee--after Hill announced that she would bypass the Committee--Jeff Thorsen, was not even placed on tonight's County Board agenda.  She has recommended Cathy Ferguson, a colleague of Thorsen on the Crystal Lake City Council.]

With that as background, Gasser’s conclusion might be of interest.  Playing off Hill’s “epitome of conflict of interest” statement, Gasser concludes

“The real conflict of interest is Hill’s nominee of former Family Services & Community Mental Health Center for McHenry County CEO and current board member Bob Martens (Spring Grove).”

Why?

He points to what he calls about a $140,000 “Golden Parachute” for Martens when he was listed as “Former CEO” of  the Family Services and Community Health Center for McHenry County.   (He found that information on the agency’s IRS Form 990.)

Gasser continues,

“This same year the McHenry Mental Health Board gave a loan to Family Services & Community Mental Health Center for McHenry County $719,981 when no other lending institution would do so because of the risk.”

Gasser then asks a series of questions that readers might find of interest.

One of them has to do with the August 2012 collapse of Family Services after Martens retired and while he was one of four GOP candidate for County Board in District 4.

Gasser asks,

“Should this person really be the liaison between the county board and the Mental Health Board?”

There is more, but, again, I suggest you go to the source of this story on Andrew Gasser’s blog.

As mentioned previously, replacement of Salgado with Martens will change the balance of power on the Public Health Committee.  It will put Hill loyalists in control by a 4-3 margin.

For 708 Board purposes, that means that Hill can name replacements for the two seats whose terms expire January 1, 2014, without bypassing the committee for a second time:

• Vice President Brett  Wisnauski
• Secretary Connee Meschini

Ferguson’s term, if approved, would expire at the same time.

The meeting at which Hill’s replacement recommendation will be considered in tonight at 7 PM in the building north of the McHenry County Jail.

State Senator Pam Althoff was simply bubbling after the McHenry County Republican Central Committee Monday night.

What she enjoys doing most is make government work.

From personal experience in two decades of casework, I can tell you that is difficult in Illinois.

She had two successes on her mind.

How excited was she?

If I had had a video camera and been fast enough, I could have shown you a Snoopy happiness dance as she walked up the incline from the Algonquin Township Hall meeting room to the parking lot after telling me about her successes.

The one with the most countywide significance is the retention of the over $800,000 that had flowed to the now closed McHenry County Family services.

With McHenry County Mental Health Board employees handling the paperwork, stepping up to the plate were

• Pioneer Center
• Family Alliance
• Thresholds
• Rosencrans

The latter is based in Rockford and has agreed to operate out of the old (really quite new) Family Services Building.

It is also providing jobs for seventeen of those who used to work at Family Services.

The not-for-profit organization responsible for repaying the bank loan will now have a source of rent which will, to some extent, replace that paid by Family Services.

It will also provide services to non-Medicaid patients who used to be served by Family Services.

In addition, Althoff is strongly thinking about moving her office from Crystal Lake (northeast corner of West Crystal Lake Avenue and Route 14).  Her rent would also help pay the mortgage.

With a lot of her new district in Lake County, she believes her office should be closer to the population center.  Her State Representatives will be Democrat Jack Franks and Republican Barb Wheeler.

The Family Service & Community Mental Health Center for McHenry County has been in trouble for “over five years,” according to its new Executive Director Lori Nelson.

That came out in response to a question from County Board member Randy Donley near the end of a meeting of Public Health and Human Services Committee Friday morning.

708 Board Executive Director Sandy Lewis revealed that her property tax-funded agency had had financial concerns about Family Services for two years, even making “a $1 million advance for cash flow purposes.”

Nelson, who replaced recently nominated District 4 County Board GOP candidate Bob Martens as Executive Director, outlined the criteria she and her board devised to find a “partnership with an outside agency” that would allow her agency to continue providing mental health services to local residents.

One was that the agency be fairly sizable with a budget of $40-50 million.

That was the magic number that the McHenry County people concluded was necessary to have a mental health agency that could survive the diminishing resources from Illinois state government and the uncertainties of the Federal government’s health care delivery changes.

But shear size was not the only criterion for what Nelson called “potential partners” for her agency with its “high debt load” for mortgaged buildings at Oak Street and Veterans Parkway in McHenry.

And the very survival of Family Services seemed to be the primary motivation for the 53-year old McHenry County mental health provider.

“Our alternative was to close the doors,” Nelson explained.

Nelson and her board looked at thirty-three elements, including

• a five-year history of net 3% (which a for-profit firm would call profit, I believe)
• six months of cash reserves
• an (undefined at the meeting) debt ratio
• measured performance standards
• presences at the national level
• primary care integration
• certified electronic record keeping
• ability to manage multiple sites
• understanding of a 708 board

“Ultimately, North Central met and exceeded all of our expectations,” Nelson said.

The result was a decision to agree to a takeover of everything but real estate debt by the North Central Behavioral Health System, based in LaSalle County.

“The entire presentation is about how the mental health system is changing,” observed 708 Exec Lewis.

“Over 30% of mental health agencies will not survive,” she added.

She stressed that it was “not a [hostile] takeover.”

Run by former Iowa head hospital exec Don Miskowiec, North Central plans to continue providing the same mental health services locally, with the current providers who decide to remain on staff.

Sandy Salgado had a line of questioning of the liability of local taxpayers.

“Don’t say we don’t have responsibility for the taxpayers,” she said at one point.

There will, however, be a reduction of staff in McHenry County as overhead functions are shifted south.

“Without this kind of cost sharing, there wouldn’t be the possibility of maintaining [service here}," Miskowiec explained.

Mary Donner, the County Board liaison to the 708 Board pointed out that overhead now is 20%, but that will be lowered to 10%.

The total cost of that overhead will be about $575,000 a year.

Under questioning Donna Kurtz, a former Family Services Board member, it was learned that of the 97 employees now, 85-87 will remain.

Nelson said “about 18 bodies” will be lost with the planned “economies of scale.”

CEO Miskowiec pointed out that Family Services has 60-65% productivity, while North Central has 72%.  He expects to increase McHenry County’s operational efficiency level for employees to that of the rest of his agency.  The productivity measure relates to the percentage of time that employees spend in direct contact with clients.

The Family Services board will remain in existence in order to service the mortgages and clean up bills and re-reimbursements which occur after the beginning of the May 1st “transition of service agreement” by North Central.

Leases payments for use of the two buildings, combined with rent from the on-site pharmacy, plus renting out existing empty space are expected to pay back the mortgage holders and maintain the buildings.

An issue brought forward by Donna Kurtz was why Family Services was not merging with a McHenry County not-for-profit organization.

Nelson had explained “other behavioral health providers” in surrounding counties had been examined, as well as health care entities like hospitals, had undergone a financial viability review before North Central had been selected as the best match.

Kurtz was critical of “tax money…going to…North Central and come back here.  Now we have the money.  It [won't be] a local bank…That hurts the economy.  A lot?  No, but that bothers me.”

Donner explained that most of the deliberations had taken part in Executive Session.

Kurtz also criticized the use of the term “partnership.”

“Partnership is among equals…This is a takeover.”

“Let’s keep it local.

“We have more layers; we have less control,” Kurtz contended.

McHenry County residents will have three of eleven board spots.

In response, Miskowiec said,  “I think there is a severe risk to service delivery here [without the merger].  We’re not here as a hostile takeover.  accomplished].”

Miskowiec stressed that McHenry County money, outside of the 10% overhead, will be spent in McHenry County.

“I can’t cross-subsidize counties.

“There are changes, but not in day-to-day services.”

McHenry County has about 6,000 clients, while North Central has 8-10,000.

North Central currently service clients in a seven-county area, having outpatient centers in

• LaSalle
• Ottawa
• Streator
• Princeton
• Canton
• Macomb

The agency service area stretches almost to the Mississippi River in the area where Western Illinois University is located. Counties covered are Bureau, Fulton, LaSalle, Marshall, McDonough, Putnam and Stark.