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Topic: Genesee Health System Sues County Commissioers

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untanglingwebs
El Supremo

Register of Action
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OPEN CASE REGISTER OF ACTIONS 05/22/18 PAGE 1
18-110977-CZ JUDGE FARAH FILE 05/18/18
GENESEE COUNTY

P 001 GENESEE HEALTH SYSTEMS,, VS D 001 GENESEE COUNTY,,
C/O-GENESEE COUNTY CLERK,,
900 S SAGINAW ST
2ND FLOOR
FLINT MI 48502
ATY:BERG,FREDERICK
P-38002 313-225-7000

D 002 GENESEE COUNTY BOARD OF COMM,,
1101 BEACH ST
ROOM 223
FLINT MI 48502

D 003 GENESEE COUNTY TREASURER,,
C/O-CHERRY,DEB,
1101 BEACH ST
ROOM 144
FLINT MI 48502

D 004 GENESEE COUNTY CLERK,,
C/O-GLEASON,JOHN,J,
900 S SAGINAW ST
2ND FLOOR
FLINT MI 48502

D 005 YOUNG,MARK,,CHAIRMAN
1101 BEACH ST
ROOM 223
FLINT MI 48502

Actions, Judgments, Case Notes
-------------------------------------------------------------------------------
Num Date Judge Chg/Pty Event Description/Comments
---- -------- ---------- ------- ---------------------------------------------
1 05/18/18 FULLERTON SUMMONS AND COMPLAINT FILED
RECEIPT# 00462270 AMT $175.00
2 COMPLAINT FOR DECLARATORY
JUDGMENT, MANDAMUS, INJUNCTIVE
RELIEF & DAMAGES FILED
3 ORDER REASSIGNING CASE FILED
(LOA 2013-05)
4 FARAH CASE REASSIGNMENT
FROM: FULLERTON,JUDITH ANNE,
TO: FARAH,JOSEPH J.,
Post Tue May 22, 2018 5:17 pm 
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untanglingwebs
El Supremo

Ryan Loree, candidate for Genesee County Ward 8 Commissioner, is running against incumbent Ted Henry. He went live today on Youtube to discuss this lawsuit and to call for a forensic audit of the County. The allegations involve $5.2 million and more that the county commissioners failed to transfer for mental health services and used to cover county deficits.
Post Tue May 22, 2018 5:35 pm 
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untanglingwebs
El Supremo

County and Genesee Health System locked in battle over $10 million ...
www.mlive.com/news/flint/index.ssf/2016/08/county_genesee_health_system_i.html
Aug 9, 2016 - Community health services could suffer if Genesee Health System and the ... Flint News ... In July, Genesee County Clerk John Gleason filed a lawsuit against the board of commissioners over what he claims is the misuse of a ...
Post Tue May 22, 2018 5:37 pm 
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untanglingwebs
El Supremo

FLINT NEWS
County and Genesee Health System locked in battle over $10 million
Updated on August 9, 2016 at 12:24 PM Posted on August 9, 2016 at 7:00 AM
7
Gallery: Genesee County Clerk, John Gleason speaks to the press about Genesee Health System

By Molly Young
GENESEE COUNTY, MI -- A battle is brewing over millions of dollars in taxpayer money.

On one side, Genesee Health System officials say the county must give $5.2 million to GHS.

County officials, however, say they don't owe GHS anything and counter that it's the health system that owes money to county coffers.

The dispute stems from an annual $10.2 million payment that GHS claims was owed last year.

The county paid $5 million but asked to be put on a payment plan for the balance.

When GHS refused, county officials took a deeper look at the money and determined that the county had actually overpaid the amount due for the past three years.

GHS CEO Danis Russell believes the county is wrong in its interpretation that the county overpaid by more than $5 million.

He said if the county didn't have money allotted to pay GHS, then it raises concerns about how funds are being spent.

"I think that the logic they're using is inaccurate. They don't understand (community mental health) financing. We were all in agreement that $10.2 million was the amount until the state sent them a letter saying that they should pay us, and then they recalculated everything and that's when they came up with the new number," Russel said. "We don't agree with that, and anybody who knows anything about the way community mental health services are financed would not agree with that."




Russel has asked Genesee County Prosecutor David Leyton, who serves as corporation counsel for the county, to sort out the dispute.

Leyton said that when he and his team of lawyers reviewed the situation, they determined that they needed to better understand GHS financials to know if the county is paying the correct amount determined by law.

"It's basically accounting based upon the law, and that's what we're trying to get to - that's what this is about," Leyton said. "Nobody's doing anything underhanded or trying to not step up to whatever responsibilities, but we just want to make sure that we're on solid legal ground."

The two sides are expected to meet to discuss the matter before the end of the month.

It's not the only feud the county is fighting when it comes to money.

In July, Genesee County Clerk John Gleason filed a lawsuit against the board of commissioners over what he claims is the misuse of a $6.5 million technology fund meant to furnish upgrades in his office.

Then-county commission board chair Jamie Curtis called it a political stunt, and said technology upgrades have taken place, citing the county board going form paperless to wires and jail from DOS and index cards to a computerized system for records.



Gleason said the lawsuit would be dropped and the issue resolved if the technology upgrades are completed.
Post Tue May 22, 2018 5:39 pm 
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untanglingwebs
El Supremo

Flint Talk Forums View topic - $4 million missing from Genesee ...
www.flinttalk.com › Political Talk
Jul 1, 2015 - 15 posts - ‎1 author
Genesee County Clerk-Register John Gleason is pursuing an audit of his .... The Tech funds were part of the lawsuit between Gleason and the ...
Post Tue May 22, 2018 5:47 pm 
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untanglingwebs
El Supremo

FLINT NEWS
Lawsuit claims Genesee County withholding $5.2M to cover up financial distress
Updated 10:30 AM; Posted 10:30 AM
Aaron and Kourtney Brank look on as an instructor high-fives Madison, 4, for an excellent day of learning through routine, practice and repetition in this 2015 MLive-The Flint Journal file photo at Genesee Health System Children's Autism Center in Burton. Jake May | MLive.com
Aaron and Kourtney Brank look on as an instructor high-fives Madison, 4, for an excellent day of learning through routine, practice and repetition in this 2015 MLive-The Flint Journal file photo at Genesee Health System Children's Autism Center in Burton. Jake May | MLive.com


By Dominic Adams dadams5@mlive.com
FLINT, MI -- Genesee Health System has filed a lawsuit in an attempt to get $5.2 million in taxpayer money it believes is owed by Genesee County.

But the county is claiming GHS is the one that owes it money.

GHS filed the lawsuit May 18 in Genesee Circuit Court and alleges the county is withholding the money to cover up its own financial shortcomings.

"The county repeatedly acknowledged both that GHS is entitled to the GHS funds and that it was withholding those funds because the county was otherwise unable to pay its own bills," according to the lawsuit. "The county's claim of a mistake is a pretext, made in bad faith for the purpose of concealing its financial distress and converting the GHS funds to its own use."

The battle goes back to 2015 and an annual $10.2 million payment GHS claims it was owed that year. The county paid $5 million but asked to be put on a payment plan for the balance, according to MLive-The Flint Journal archives.

When GHS refused the payment plan, county officials took a deeper look at the money in 2016 and determined that the county had actually overpaid the amount due for the previous three years.



Community health services could suffer if Genesee Health System and the county don't settle a dispute over $10.2 million, according to GHS officials.


Genesee Health System is the mental health authority providing Medicaid funded mental health services and other mental health services to Genesee County residents.

Attorneys for GHS say the under the Michigan Mental Health Code, Genesee County was required to turn over all the agency's assets, including cash to GHS upon GHS' formation.


"Instead, the county held back GHS' cash for more than three years," according to a statement from Butzel Long, the law firm representing GHS. "GHS has asked the county for many months to resolve the dispute and turn over GHS' cash. The lawsuit is brought to remedy the county's unlawful conduct and recover the GHS funds for GHS' rightful use and benefit. The county's actions are compromising GHS's ability to carry out its mission and ultimately those actions will directly harm county residents requiring GHS' assistance."

Genesee County has not yet filed a response to the lawsuit.

"We actually believe GHS owes us money and we'll vigorously defend the lawsuit," said Brian MacMillan, assistant corporation counsel for Genesee County.

No court date has been scheduled in the case.
Post Thu May 24, 2018 12:59 pm 
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untanglingwebs
El Supremo

FLINT NEWS
Lawsuit claims Genesee County withholding $5.2M to cover up financial distress
Updated 10:30 AM; Posted 10:30 AM
Aaron and Kourtney Brank look on as an instructor high-fives Madison, 4, for an excellent day of learning through routine, practice and repetition in this 2015 MLive-The Flint Journal file photo at Genesee Health System Children's Autism Center in Burton. Jake May | MLive.com
Aaron and Kourtney Brank look on as an instructor high-fives Madison, 4, for an excellent day of learning through routine, practice and repetition in this 2015 MLive-The Flint Journal file photo at Genesee Health System Children's Autism Center in Burton. Jake May | MLive.com


By Dominic Adams dadams5@mlive.com
FLINT, MI -- Genesee Health System has filed a lawsuit in an attempt to get $5.2 million in taxpayer money it believes is owed by Genesee County.

But the county is claiming GHS is the one that owes it money.

GHS filed the lawsuit May 18 in Genesee Circuit Court and alleges the county is withholding the money to cover up its own financial shortcomings.

"The county repeatedly acknowledged both that GHS is entitled to the GHS funds and that it was withholding those funds because the county was otherwise unable to pay its own bills," according to the lawsuit. "The county's claim of a mistake is a pretext, made in bad faith for the purpose of concealing its financial distress and converting the GHS funds to its own use."

The battle goes back to 2015 and an annual $10.2 million payment GHS claims it was owed that year. The county paid $5 million but asked to be put on a payment plan for the balance, according to MLive-The Flint Journal archives.

When GHS refused the payment plan, county officials took a deeper look at the money in 2016 and determined that the county had actually overpaid the amount due for the previous three years.



Community health services could suffer if Genesee Health System and the county don't settle a dispute over $10.2 million, according to GHS officials.


Genesee Health System is the mental health authority providing Medicaid funded mental health services and other mental health services to Genesee County residents.

Attorneys for GHS say the under the Michigan Mental Health Code, Genesee County was required to turn over all the agency's assets, including cash to GHS upon GHS' formation.


"Instead, the county held back GHS' cash for more than three years," according to a statement from Butzel Long, the law firm representing GHS. "GHS has asked the county for many months to resolve the dispute and turn over GHS' cash. The lawsuit is brought to remedy the county's unlawful conduct and recover the GHS funds for GHS' rightful use and benefit. The county's actions are compromising GHS's ability to carry out its mission and ultimately those actions will directly harm county residents requiring GHS' assistance."

Genesee County has not yet filed a response to the lawsuit.

"We actually believe GHS owes us money and we'll vigorously defend the lawsuit," said Brian MacMillan, assistant corporation counsel for Genesee County.

No court date has been scheduled in the case.
Post Thu May 24, 2018 1:00 pm 
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