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County makes back payment to state

Money owed because clinics privatized

October 3, 2012
By MICHAEL ANICH , The Leader Herald

JOHNSTOWN - Fulton County has to make a $5,384 rate adjustment back payment to the state Department of Health because the county no longer operates its two former mental health clinics.

County Director of Community Services Ernest Gagnon informed the Board of Supervisors' Human Services Committee last week that since the clinics closed at the start of the year, the county must make the payment to the DOH. He said he received a letter Sept. 21 about the payment. The amount is based on a negative retroactive rate adjustment for billing done in November and December 2011, he said.

"These are claims we thought might not apply," Gagnon stated.

As the county no longer operates the clinics, funds cannot be taken out of future Medicaid checks, he said.

"We do have money in our deferred revenue account," Gagnon said. "This is more of a fallback."

The committee approved a proposed transfer of $5,384 from the account to pay the DOH. The full board will review the payment at its meeting Tuesday.

Fulton County government for many years ran two Gloversville-based mental health clinics, whose services were transferred to St. Mary's Healthcare at the start of this year.

The hospital group took over services for 1,000 patients at the county clinics. Supervisors last year decided to privatize the clinics in an effort to reduce county costs. The new clinics are located at the same sites. The former mental health clinic is at the County Annex at 57 E. Fulton St. and the addiction clinic is at 73 N. Main St.

Gagnon also requested a board resolution to remove five computer systems from the inventory of the Community Services Department because they are obsolete. He said the computer "set-ups" range in age from 2001 to 2006 and their hard drives were removed. He said the plan is to have the obsolete hardware taken to the county Department of Solid Waste for recycling.

The items, he said, are now "off our inventory" and the county Information Services Department transferred computers that are still useful to its agency for redistribution.

Michael Anich covers Johnstown and Fulton County news. He can be reached at



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