The head of the often criticized state Department of Health and Human Services resigned last week after less than two years in the job, saying it was time for a new commissioner to build on his work and take the operation to the next level.
Commissioner Jack Nicholas, a long-time state finance administrator who came in at the request of Gov. John Baldacci to merge the departments of Human Services and Behavioral Health, did not have an easy time of it during his short tenure as head of DHHS.
The Medicaid budget spiraled out of control and the department was dogged by bad audit findings – in large part because of decisions made by the previous administration. But it was under his watch that the Medicaid billing system melted down when the switch was flipped too quickly on a new computer, and those problems became the focus of media and legislative attention for the past year.
Nicholas, in his resignation letter, focused instead on the merger for which he was hired that created a department with 4,000 staff.
“Our accomplishments have been significant and remarkable to the extent that we have created a firm foundation for the future of the new Department of Health and Human Services,” Nicholas wrote in a letter to his staff. “It is with equal regret and satisfaction that I have informed the governor of my plan to leave as commissioner effective January 2006.”
Gov. Baldacci said, “Jack joined my administration at a crucial time and his leadership was essential in making the merger…a successful process. During this time Jack redesigned new internal fiscal controls while promoting compassion and responsiveness at the department.”
Speculation had been growing that Nicholas would not stay long at the job having already put in 30 years of government service, including a decade as the state’s budget officer. In recent months, he made jokes at his own expense about his longevity as commissioner, given the controversy over the Medicaid billing system.
Still Sen. Art Mayo, D-Sagadahoc, the co-chair of the Health and Human Services Committee, said he was surprised by the news.
“I will have to admit I was surprised although I had begun to think of late he wasn’t as happy in the job as he was a year ago,” Mayo said.
Mayo said the department has had some major problems, including the Medicaid billing computer that “frustrated Jack.” He credited him with overseeing the merger and bringing in good people to run one of the largest departments in state government.
“On balance…he has done a credible job,” Mayo said. “There are people out there who feel the department needs continuing corrective measures.”
Mayo said the department has to keep moving forward.
“I hope we don’t mark time between now and the arrival of the new commissioner,” Mayo said.
While some have speculated that Deputy Commissioner Mike Hall, who Baldacci charged earlier this year with restructuring the state’s MaineCare (Medicaid) department, would move on up to the top job, for now he continues to work on fixing the department and the billing computer.
“Deputy Commissioner Mike Hall will continue to focus on the all important task of reforming the MaineCare payment system,” Baldacci said.
Brenda Harvey, current deputy commissioner in behavioral services, will serve as the acting commissioner until a new commissioner is named.
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