The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, October 22, 1994             TAG: 9410220304
SECTION: LOCAL                    PAGE: B5   EDITION: FINAL 
SOURCE: BY MARIE JOYCE, STAFF WRITER 
                                             LENGTH: Medium:   66 lines

PROPOSAL WOULD PRIVATIZE MENTAL FACILITIES

Mental health advocates say they're worried about a proposal to put state mental health and mental retardation facilities under private control.

The proposal, one of many drafted by Gov. George F. Allen's strike force on government reform, could mean everything from selling off hospitals to hiring private janitorial companies to sweep the floors.

Marilyn H. West, chairman of the strike force committee that made the suggestion, said privatization would save money without sacrificing quality care. State-operated facilities include Eastern State psychiatric hospital in Williamsburg and Southeastern Virginia Training Center in Chesapeake, which works with mentally retarded people.

People like Jean Beale of Chesapeake aren't convinced.

Beale has had a retarded daughter in the system for 32 years. Sandra Arnold, 39, lives at Southeastern, where she receives speech therapy and other training and has a job in the facility's workshop.

Beale has seen improvements in her daughter since her placement at Southeastern.

``I don't feel we can get any better than we are right now,'' she said. ``I'm very fearful about what might happen in the shuffle to privatizing.''

Freda Stanley, chairman of the Coalition for the Mentally Disabled in South Hampton Roads, said advocates aren't necessarily dead-set against the idea.

But if Allen accepts the suggestion, she said, advocates will watch carefully to see if changes include provisions for maintaining quality.

She also said she's suspicious about how the change would affect public control of state programs. Another strike force proposal calls for evaluating all public boards, councils and commissions with an eye to eliminating some and consolidating others.

``We're wondering where the voice of the people is,'' Stanley said.

West said cutting down on commissions is a way to eliminate duplication, not public oversight. Duties of defunct boards, she said, could be taken over by those that remain.

``I can't stress this enough - it's about administrative efficiencies and operational improvements in government,'' West said.

The idea of privatization isn't a radical one. Community services boards - government-funded agencies that provide local mental health care to communities - often hire private groups to handle some services.

``It's not a new phenomenon,'' West said.

A case in point: The Pines Residential Treatment Center in Portsmouth.

The Pines, which treats emotionally disturbed children and young adults, is run by a private company, First Hospital Corp. of Norfolk.

Even so, the government pays for almost all the services through Social Services, the Department of Corrections and federal special education programs, said Ed Irby, chief operating officer for First Hospital.

Irby, whose company also has many contracts with government agencies, said private companies can be made accountable to the public.

For example, the company has landed a contract in Maryland to run a state-funded school for disruptive youths.

``The contract is renewable on an annual basis, and we either perform or we don't perform,'' Irby said.

The entire strike force report, with suggestions for streamlining all aspects of government, is due to be given to Allen next month. He can choose which of the proposals - if any - he wants to implement.

KEYWORDS: MENTAL HEALTH MENTAL RETARDATION by CNB