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April 3, 2008
 Independent Evaluation of the Performance of Local Management Entities Serving the North
Carolina DHHS, DMHDDSAS
The review was conducted by Mercer. The reviewers examined how a fully functioning
Local Management Entity (LME) should operate and evaluated each LME on its overall performance
in three broad categories: financial and business management; information technology and claims
management; and clinical operations and governance. The LMEs were given ratings, with Tier 1
being the highest rating and Tier 3, the lowest, for their financial and business practices,
management operations, information technology, claims management, clinical operations, and
governance. The ratings were averaged, and an overall rating was also given.
The review suggests that fewer LMEs are needed to improve mental health services. Of the
states 25 LMEs, seven are performing their functions at an above average level; 13 are at an
average level; and five are below average.
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