Statement by DHHS regarding contract employee
WRAL made two different requests for information regarding contract employees at the Department of Health and Human Services. This was the response from DHHS Communications Director Ricky Diaz.
Posted — UpdatedWRAL made two different requests for information on Friday, Sept. 6, 2013, regarding contract employees at the Department of Health and Human Services. Below is the response from DHHS Communications Director Ricky Diaz. WRAL has edited only for formatting and to adjust how background documents are linked.
The challenges at the Department of Health and Human Services are among the greatest in all of state government, and the Secretary has assembled a strong leadership team and brought in experts on contract who are working to fix these deficiencies with a sense of urgency. Among the challenges:
- The Department, with an $18 billion budget, had no one in charge of overall finances.
- A performance audit performed by the State Auditor revealed state had overspent its Medicaid budget by $1.4 billion over the previous 3 years.
- NCTracks, the department’s new Medicaid claims processing program, was hundreds of millions of dollars over budget and years behind schedule.
- The department did not have a Chief Information Officer in place responsible for some of the largest IT projects in state government.
- The Office of Internal Audit was understaffed and a year behind in completing scheduled financial and performance audits.
- Nearly a third of DHHS employees did not have e-mail accounts, making it difficult to receive feedback and communicate critical department directives.
Joe also undertook an in-depth examination of financial issues that have historically plagued the Department, and has begun implementing corrective actions, already achieving millions in savings without compromising services. Among his many accomplishments:
- Created a plan to reduce temporary agency workers in our facilities and hire more health care professionals. This will reduce vacancies in our healthcare facilities while improving the care we provide for our most vulnerable patients, and is additionally estimated to save the state in excess of $1.25 million annually.
- Developed a plan to achieve $5 million in savings to avoid reductions in services rendered by DHHS supported non-profits.
- Expanded the Office of Internal Audit, allowing DHHS to increase and improve its oversight and accountability to reduce waste and responsibly manage the hundreds of millions of dollars in contracts it oversees.
- Is a major participant in formulating DHHS consolidation efforts that is projected to save the state over $1.8 million over the next four years.
Hauck’s contract began on January 22 and is scheduled to expire on November 30. Compensation is capped at $310,000.
Merritt is a Certified Public Accountant and former State Auditor for North Carolina having served from 2005 until 2009. Merritt is a member of the North Carolina Ethics Commission. He earned degrees in Accounting and Economics from North Carolina State University. His contract began in May 2013 and expires in May 2014. It is capped at $312,000 and includes two, one year options.
Atlas is the founder and principle of Grace Creek Advisors. Prior to that, Bob was President of the Lewin Group, a premiere consultancy in Health and Human Services. He also served as Executive Vice President and Chief Operating Officer of Avalere Health.
His contract began on August 19 and will terminate on November 18, capped at $56,000.
Susan D. Young was enlisted by DHHS as a third-party expert to evaluate if NCTracks was ready. Susan also assessed the risk of NCFAST project, identifying gaps and recommending changes for successful implementation. Her contract began on January 7 and terminated on April 19.
Jerry Johnson was the Director of Internal Audit for BellSouth, a $25 billion international telecommunications company. He was brought in to help develop better processes and procedures to meet the needs of the Department. His contract is capped at $107,900.
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