CRYSTAL FALLS — The Iron County Board has come out against a potential Michigan Department of Health and Human Service move to open the state’s mental health services plans to competitive contracts.

The board passed a resolution Tuesday opposing the MDHHS proposal at the recommendation of Northpointe Behavioral Healthcare System CEO Mandy Padget, who warned it could lead to privatization of the state’s Prepaid Inpatient Health Plans, or PIHP. Michigan’s Medicaid-funded behavioral health system includes 10 regional PIHP that manage funding for mental health and substance use disorder services. NorthCare Network is the regional PIHP for the Upper Peninsula.

Northpointe, which serves Dickinson, Iron and Menominee counties, is among the community mental health service programs under NorthCare’s umbrella. There are also a number of substance use disorder service providers across the U.P.

Objections have been raised as MDHHS launches a competitive procurement process for the state’s PIHP contracts. The state plans to issue a request for proposals for PIHPs this summer, with the goal of a service start date of Oct. 1, 2026.

Along with the potential disruption of community partnerships, Padget noted concerns about the potential transfer of publicly funded services to a private entity.

To begin, private plans have higher administrative costs, 15% compared with the current 2%, she said.

There could also be a risk of the plans cherry-picking services, only accepting patients who are less expensive to treat and avoiding patients with complex or costly medical conditions or declining certain populations or geographic areas altogether, Padget said.

“Why would we set ourselves up to fail?” She asked. “Why should we ever allow the Department of Health and Human Services to make radical decisions like this for us?”

In addition to the resolution, Padget urged the board to engage lawmakers, other county commissions, the National Alliance on Mental Illness and the Michigan Association of Counties to create unified opposition to the changes.

In other business, the board:

– Voted to rescind a resolution passed in June allowing the Iron County Housing Commission’s Pleasant Valley Apartments in Crystal Falls to become a limited liability corporation owned solely by the housing commission. It’s part of the commission’s move to receive funding through the federal Rental Assistance Demonstration. Pleasant Valley Apartments has 43 bedroom units with rents based on income.

Instead, the board passed a resolution transferring the deed to the property from the county to the housing commission, with a deed restriction that the title cannot be transferred or encumbered without the county’s consent. This will enable federal funding eligibility while preserving county oversight.

– Heard from 911 Central Dispatch Director Ashley Schmidt that a recent hire to the department had already resigned, citing the uncertainty of the future of the department and low wages. The department did bring on an employee with previous experience and will interview another.

A special meeting to discuss any responses to potentially outsourcing the department has been set for 4 p.m. July 23.

– Approved the hiring of a paternity specialist/caseworker for the trial court. For a 14-month trial period, the hours worked will be transferred from the district court clerk/juvenile register to the district court deputy clerk position.

– Authorized posting to hire a jail administrator.

– Adopted a resolution to enter participation agreements in the partial settlement of national prescription opiate legislation.

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Jim Paul can be reached at 906-774-2772, ext. 85229, or jpaul@ironmountaindailynews.com.