Indeed, Cardinal Innovations receives federal funding

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As an addendum to today's story, Cardinal Innovations spokeswoman Rachel Porter confirmed after deadline Tuesday that her agency—known in official lingo as a managed care organization—does indeed receive federal funding from the U.S. Department of Health and Human Services (HHS).

That information is key because it confirms the state-funded Cardinal Innovations, formerly known as Piedmont Behavioral Health, is subject to the findings of a federal investigation into whether Cardinal has broken federal law by denying mental health care reimbursements for the treatment of undocumented immigrants in its 15-county service area, which includes Orange and Chatham counties.

As reported in today's INDY Week, HHS' Office for Civil Rights is probing the Kannapolis-based organization. Latino advocates say Cardinal's policy is effectively cutting off treatment for the undocumented community, a possible violation of federal discrimination laws.

Managed care organizations such as Cardinal Innovations are tasked with disbursing state mental health care dollars for the treatment of low-income residents. Undocumented immigrants do not qualify for Medicaid cash. But the state has deployed an alternate form of funding, known as integrated payment and reporting system (IPRS) dollars, to cover Medicaid gaps in the past.

Activists say Cardinal Innovations is declining the use of IPRS funds for that purpose today, and the impact has been felt in nonprofit organizations such as El Futuro that offer mental health care and substance abuse treatment for the undocumented community.

If the Office for Civil Rights inquiry finds Cardinal Innovations in the wrong, Cardinal can be forced to alter its policy or risk losing federal funding. Porter could not specify how much HHS funding the agency receives as of Tuesday night.

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