Moose Lake Star Gazette - Serving Carlton and Pine Counties Since 1895

By Ailene Croup
Moose Lake Star Gazette 

Bankrupt Riverwood to receive $17,603 payment

 


The Pine County Board of Commissioners approved payment of $17,603.40 to the Riverwood Center bankruptcy trustee at last week’s regular meeting.

Riverwood, which provided mental health counseling services for Pine and several other counties in the state, abruptly closed its doors in March 2014 and filed bankruptcy.

When Pine County realized Riverwood Center was in financial crisis, according to information provided by the county, payments for February and 17 days in March 2014 were withheld. The amount withheld was $17,603.40.

The settlement agreement approved by the board will mean both sides give up litigation, County Administrator David Minke told the board. Pine County will pay the amount withheld in 2014 and will apply to the state for reimbursement of that cost.

County Attorney Reese Fredrickson said Isanti County hired an outside attorney to come to the same settlement conclusion. “So, your county attorney saved you money.”

Fredrickson explained the settlement agreement is with the bankruptcy trustee. The county has made a claim of $66,639 against Riverwood.

“After the bankruptcy, we may see some money but not a lot,” Fredrickson added.

He told the Hinckley News finalizing the bankruptcy could take up to a year.

Mental health service

Pine County Health and Human Services (HHS) is mandated to provide clinical supervision for its mental health case managers and social workers. The service was provided by Riverwood Center before it closed. Since that time, Pine County HHS has contracted with Jennifer White for clinical supervision.

The contract rate is $100 per hour for a maximum of three hours a month provided on the third Friday.

Commissioner Steve Chaffee asked how White is paid.

HHS Director Becky Foss said White submits a bill for services.

The county board approved extending the contract with White from January 1 through June 30.

 

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