Tuesday, June 05, 2012

New River LME employees Sue for 'Negligent Squandering' of Funds: WHO WANTED NEW RIVER LME DEAD?

Back in October, 2011, this blog queried as to 'who wanted New River dead?'----which is still a legitimate question.  Was it Daymark Recovery---that took it over? 

Former New River employees suing agency, five counties

A group of 65 former employees of failed New River Behavioral Healthcare is suing its governing agency and the Northwest N.C. counties that formed it in 2006.
The lawsuit, filed Monday, lists New River Service Authority, five board members and Alleghany, Ashe, Avery, Watauga and Wilkes counties as defendants. The agency had provided behavioral health services to more than 13,000 clients in eight counties, including Iredell, Surry and Yadkin.
The lawsuit accuses the plaintiffs of misappropriating and "negligently squandering" federal and other funds.
The provider has accumulated at least $8 million in documented debt claims over the past 2½ years. That amount likely will increase as independent audits of its finances are conducted.
Each employee is pursuing damages of more than $75,000, including compensatory and punitive damages, and attorney fees. They want to be paid for unused vacation days and other expenses.
The lawsuit is the latest development involving the closure of New River Behavioral of Boone on Oct. 31. The services it provided are now handled by Daymark Recovery Services.


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