Consultants Make Top Dollar to Scrutinize N.C. Medicaid
http://www.northcarolinahealthnews.org/2014/02/14/consultants-make-top-dollar-to-scrutinize-n-c-medicaid/
A recent review of North Carolinas Medicaid administration found a need for organizational improvements. Part of the answer for DHHS is to hire several high-priced consulting firms.
By Rose Hoban
In the wake of a consultants report stating that North Carolinas Medicaid program needs to beef up its organizing, budget forecasting and administrative capabilities, health leaders have hired two more consulting firms to guide the Division of Medical Assistance, which manages the Medicaid program, through administrative changes.
In two no-bid contracts that allow for individual consultants to be paid as much as $803,000 per year, two management consulting firms will advise DMA on reorganizing the finance section and assessing the program-integrity and audit sections.
The first contract, for $3.25 million, went to the consulting firm Alvarez & Marsal to create a new organizational structure for DMA, including writing job descriptions and recruiting people to fill financial positions in the Medicaid program.
The consultants also will review the organization and performance of the NCTracks program and the divisions communications.
The firm Alvarez & Marsal is best known for being tapped in 2008 to manage the bankruptcy of financial giant Lehman Brothers at a cost of nearly a half-billion dollars. Critics of the financial bailout said that bill was too high.
The contract calls for work to be done by eight people with salaries ranging from $242 to $473 per hour and an intern earning $84 per hour. One of the consultants, a director, is slated for 2,040 hours of work for total earnings over the year of $803,760 (see chart.).