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N.C. Mental Health Association loses accreditation

Friday, July 30, 2010
(Updated 8:46 am)

RALEIGH (AP) — North Carolina's oldest mental health advocacy group will stop providing care to hundreds of people.

The News & Observer of Raleigh reports Friday that the financially troubled Mental Health Association of North Carolina is one of the state's largest private providers of group homes and treatment programs.

The association lost its accreditation Monday, cutting off the group's access to federal Medicaid reimbursements.

That's on top of severe financial problems in recent months that led to employee layoffs and wage cuts for those who remained.

State director of mental health Leza Wainwright says her agency is trying to shift the care of the association's clients to other providers with as little disruption as possible.

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