Press Release  Auditor Approves Privatization of Emergency Mental Health Services in Southeastern Massachusetts

Boston — State Auditor Suzanne M. Bump today announced that her office approved a privatization proposal from the Department of Mental Health (DMH) to privatize emergency mental health services in DMH’s Southeastern region, which includes Brockton, Cape Cod and the Islands, Fall River, and Taunton/Attleboro. Under the proposal, Massachusetts Behavioral Health Partnership (MBHP), which already provides emergency mental health services in all other regions, will contract with Bay Cove Human Services, Inc, a Boston Medical Center subcontractor, and Community Counseling of Bristol County to provide these services.

“This proposal was more complex than others my office has reviewed because of the type of service that is being privatized. Emergency mental health services play a vital role in helping some of the most vulnerable members of our community,” said Bump. “We took our role very seriously.  My staff was able to readily determine the cost savings presented in the report, which we calculated to be approximately $7 million, but in order to effectively assess the quality of services, we spent considerable time meeting with members of the community, stakeholders, DMH, and MBHP, as well as visiting DMH and MBHP facilities.”

Under the Chapter 296 of the Acts of 1993, also known as the Taxpayer Protection Act, the Office of the State Auditor (OSA) is the independent state agency responsible for reviewing proposals from state agencies and applicable authorities seeking to privatize a service that is presently performed by state or authority employees. Under the law, state agencies must demonstrate and certify to the OSA that the total cost to perform the service by contract will be less than the in-house cost, of at least equal quality, that the selected contractor has a satisfactory record of regulatory compliance, and that the contract will contain certain required provisions regarding wages, benefits and personnel. It is the responsibility of the OSA to determine independently whether the process followed by the agency meets the requirements of the law.

“This is a true testament to the value of the Privatization Law, which ensures that state agencies utilize a similar approach to what any private sector business would take in making sound business decisions – by conducting a thorough and unbiased cost benefit analysis,” said Bump. “The Privatization Law continues to provide a valuable role in ensuring that any privatization of state services is done in the best interest of the taxpayers.”

The evaluation involved OSA obtaining and analyzing various performance data, interviewing DMH and MBHP staff, performing site visits at various public and private programs that currently provide emergency service program (ESP) services, and considering the specific concerns raised by members of the Legislature, SEIU Local 509, and other stakeholders in the community. The OSA determined that all services currently being provided by the DMH state-operated ESPs will be provided under the MBHP model, but at a lower cost while maintaining the same quality.

###