Northern Lakes staff, board grapple with challenges

Apr. 20—TRAVERSE CITY — A disconnect between board members and staff continues to vex the region's largest mental health services organization, with one leadership team member comparing the relationship to a nerve-wracking game of wooden building blocks.

"Eventually, someone pulls the wrong block and the tower comes tumbling down," said Nancy Stevenson, chief clinical officer of Northern Lakes Community Mental Health Authority. "My staff, my team and myself are constantly building a tower of Jenga.

"Once a month, a board meeting happens, the aftermath (of the meeting) obliterates all of our good work being done to restructure, reorganize and stabilize this agency."

Stevenson has a long history with Northern Lakes, previously serving as a clinician, director of community crisis and wellness, and, for a time, chief operations officer. In 2021, she helped organize a community advisory committee, so Northern Lakes staff, law enforcement and non-profit leaders could meet to brainstorm solutions for improved mental health care.

Those relationships had broken down, with some citing a "my way or the highway" attitude, and are being rebuilt, community members say.

Northern Lakes receives a majority of its $90 million annual funding from Medicaid and provides services in six counties — Crawford, Grand Traverse, Leelanau, Missaukee, Roscommon and Wexford — and is governed by as many as 16 board members appointed to three-year terms by their respective county commissioners.

Board members in March voted to exit a $10 million Medicaid program, called Mi Choice Waiver, and to look for a partner for their integrated health clinic — decisions which could impact hundreds of patient clients as well as numerous Northern Lakes staff.

Federal Medicaid funding passes through the Northern Michigan Regional Entity, which provides funding and some administrative oversight to programs in 22 northern counties, and the Mi Choice Waiver program also extends to clients in this expanded range.

"There's 22 counties involved," said Al Cambridge Jr., a longtime board member from Roscommon. "That's 22 agencies (the organization will need to inform). This isn't going to be easy."

Board members said they were taking a deliberate approach, with planning and plenty of lead time, so no one would be without services.

Stevenson, in her public comment at the board's regular meeting Thursday, pointed to data showing 10 percent or more of Northern Lakes employees had job security concerns and that laughter by board members during discussions was inappropriate.

"I'm extremely disappointed with the behaviors of several board members at the last board meeting," she said. "Are you aware that Northern Lakes staff watch these board meetings?"

A review of the meeting recording shows some board members did laugh during discussions of meeting rules and of the specifics on how staff could advise on an exit plan, but did not laugh at staff.

A consultant hired to advise Northern Lakes on its finances and human resources, recommended both these exits to the board, stating that neither program fulfilled the organization's core mission, which is providing mental health services.

The consultant, Richard Carpenter of the Rehmann Group, is also being paid by NMRE, for the separate task of conducting a forensic investigation into the organization's finances, after an initial review turned up potential wrongdoing.

Years of turmoil at the organization precipitated NMRE's involvement as a kind of interim overseer, following problems that surfaced in 2021, when the organization sought to hire a new CEO.

A former interim CEO, Joanie Blamer, is on paid administrative leave, a former CFO, Lauri Fisher, was terminated, and both have since filed whistleblower lawsuits against the organization in 13th Circuit Court.

For now, the NMRE is paying the salary of the new interim CEO, Brian Martinus, who received high marks from staff during the regular meeting Thursday.

"Thirty-five years here, know a lot about community mental health, I've gone through a number of CEOs that I've worked with personally through all these years . . . Brian Martinus is probably one of the best leaders I've come across," said Cynthia Petersen, who works in community health.

The board's policy is not to answer public comment, but to listen and direct the CEO, in this case Martinus, to look into complaints and report back.

An email asking about Stevenson's complaints, sent Thursday via the board's group email address and seeking comment, was not returned Friday.

The board since October, when the $45,000/month contract with Rehmann was signed, has made some strides aimed at stabilizing the organization.

In December, the board voted unanimously for an ad hoc committee to seek an alternative to the hands-off Carver Model, which calls for a board to oversee the organization's CEO, who is granted broad powers over the organization.

The board has also scheduled special meetings to discuss Rehmann findings, engaged in lengthy discussions about changes to the organization's by-laws and credited longtime and new staff members, for their efforts at improving the organization from within.

The next monthly meeting is scheduled for May 16, at the community mental health building on South Townline Road in Houghton Lake.

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