April 14, 1983
Subject:
Mental Health; Area Mental Health, Mental Retardation and Substance Abuse Authorities; Fee Schedules for Contract Services Providers.
Requested By:
Sarah T. Morrow, M.D., M.P.H. Secretary Department of Human Resources
Questions:
- Does an Area Mental Health, Mental Retardation and Substance Abuse Authority have the authority or duty, pursuant to G.S. 122-35.47 and 35.49, to require contract service providers to submit fee schedules for the area authority’s approval to assure that the area authority complies with the policy set forth in G.S. 122-35.35 and mandated by 122-35.47?
- Can the Division of Mental Health, Mental Retardation and Substance Abuse Services of the Department of Human Resources require area authorities to follow uniform procedures which provide the area authority the means to require contract providers to submit fee schedules for the area authority’s approval to assure that the area authority complies with G.S. 122-35.35 and 35.47?
Conclusions:
- An Area Mental Health, Mental Retardation and Substance Abuse Authority has the duty to prepare a schedule of fees for its services and the authority to require contract services providers to submit to its fee schedules for its approval if it deems this to be a prerequisite for the fulfilling of the duty of the area authority to prepare such schedule.
- Yes.
An Area Mental Health Retardation and Substance Abuse Authority (hereinafter referred to as area authority) is the governing body responsible for comprehensive planning, budgeting, implementing and monitoring community based programs in the fields described by its name.
(G.S. 122-35.36(1)). In fulfilling its responsibilities, the area authority is permitted to contract with public and private agencies, institutions or resources for the provision of services with the responsibility to insure that these services meet governing rules and regulations. (G.S. 12245.49). While services cannot be refused to to individuals because of their inability to pay, the area authority is required to make every reasonable effort to collect appropriate reimbursement for the costs of services rendered to individuals based upon the recipients’ ability to pay. (G.S. 122-35.35).
Since the provision of services by contracting therefor is merely an optional way of furnishing the services required of the area authority, clearly the statutory provisions mandating the collection of fees is equally applicable to services so rendered by an entity under contract. The area authority has the duty to see that such collections are made; if it is felt that submission of fee schedules by the entity for approval is a necessary step in the collection of appropriate fees, the area authority can require the submission of fee schedules for approval.
The Department of Human Resources is the unit of State government authorized to implement, administer and monitor community based programs in cooperation with local governmental authorities. (G.S. 122-35.36(6) G.S. 122-1). The Department of Human Resources has delegated the authority to fulfill these responsibilities to the Division of Mental Health, Mental Retardation and Substance Abuse Services. In the interest of good administration, it is within the discretionary authority of that Division to require the establishment of uniform procedures as described in question number 2, above.
RUFUS L. EDMISTEN Attorney General
William F. O’Connell Special Deputy Attorney General