MENOMINEE, MICH. – Northpointe Behavioral Healthcare System hired Mandy Padget as the organization’s new chief executive officer just a week after the Trump Administration announced cuts to federal health departments, including the Administration for Community Living (ACL), which supported services to help older adults and people with disabilities live independently.
Padget, a health care leader with 19 years of experience in mental health and human services, was announced as the new CEO April 3 and began her new role on April 7.
“Mandy’s deep understanding of the challenges and opportunities within community mental health, combined with her proven commitment to serving vulnerable populations, makes her an ideal leader,” Northpointe said in an announcement.
Padget will work with Northpointe’s Chief Operating Officer Brent Johnson, who served as interim CEO while the board conducted the CEO search.
“The behavioral health landscape in Michigan is challenging and the need in our communities for high quality care is greater than ever before. I’m delighted to work alongside Northpointe’s team to deliver exceptional care,” Padget said.
The Wisconsin Board on Aging and Long-Term Care and the Wisconsin Board for People with Developmental Disabilities said the federal cuts “will pose significant challenges for state governments and state budgets. The abrupt restructuring eliminating the Administration for Community Living will likely disrupt critical services that maintain and improve the health of our most vulnerable citizens.”
The decision to eliminate the administration “was made without any input from Congress or people with disabilities, aging adults and their families who are most impacted and who rely on these programs daily for their health, safety and well-being,” the Wisconsin boards said in a joint announcement.
The ACL’s services included:
A fact sheet from the U.S. Health and Human Services Department said, “The critical programs within the Administration for Community Living (ACL) that support older adults and people of all ages with disabilities will be split across the Administration for Children and Families, Assistant Secretary for Planning and Evaluation and Centers for Medicare and Medicaid Services.”
The cuts are a reaction to a Biden Administration expansion. “Over the past four years, during the Biden administration, HHS’ budget increased by 38% and its staffing increased by 17%,” a news release said. The announced cuts won’t affect Medicare and Medicaid services, it added.
Northpointe board members also have expressed concern about federal cuts leading to state cuts in health-care programs. Northpointe, which has a location at 401 10th Ave., Menominee, receives funds from the State of Michigan for many reimbursements, some of which stem from federal government programs. Northpointe serves Menominee County, Mich., and two other Upper Peninsula counties.
It provides the following services: health services and screening, nutrition education, behavioral health services, disorder treatment, family therapy, vocational services, psychosocial rehabilitation, clubhouse and drop-in services, peer support, elderly services, community living supports and care management.
While the agency is sufficiently funded this year, at a March 20 board meeting held in Menominee, several board members were bracing for what the future could bring.
“Be aware the state of Michigan’s budget, which they have to approve October 1, 30% of that budget is made up of federal money,” said Northpointe Board Member Kevin Pirlot. “Whatever they get cut, they’re going to cut everybody else.”
Board Member Kathy Thompson asked when the board should start talking about a contingency plan.
Pirlot said, “There is nothing for us to contingent on. Whatever they decide to fund is what will get funded,” he said. “There is nothing this board can do because we are given the money to provide the services we are told to provide.”
Thompson said, “There should be a contingency plan for our clients.” It’s unlikely all funds would be cut. Healthy Michigan and Medicaid programs could be cut, but Medicare-supported health care is less likely to be cut because it involves a dedicated tax and is payroll funded.
“I appreciate that because again these are our people. This is our community,” another board member said.
So far this year, the agency has managed with a surplus. When Finance Director Kellie Davis presented a financial report on the general fund, she said, “We’ve received about $400,000 and had expenses of just over $311,000. Good news for us. We are still in a surplus position similar to last year.”
Northpointe’s programs for this fiscal year, which ends Sept. 30, are sufficiently funded, and any cuts wouldn’t affect reimbursements for services provided to date. “We’re prepaid in our system, so we already have our money for this year,” Pirlot said. “Whatever is cut is going to be cut in services, there is no ifs, ands, or buts about it.”
Pirlot said the finance committee has been discussing what could happen. “The Healthy Michigan program is a Medicaid expansion. It’s funded by federal dollars,” Pirlot said. “My projection is we’re going to see the first cut, that’s $1.7 million of services we provide. Be aware that, if anybody has a chance to speak to any politicians, we lost millions of dollars when that program was implemented because the concept was everybody was going to have this insurance. So they took away millions of dollars of general fund balance out of our budget. When this program gets slashed, nobody is going to come back with that money we had before. That’s one of the more likely things.”
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