Jun. 9—TRAVERSE CITY — Leaders and staff with the area’s largest mental health organization are making progress fixing systemic lapses in employee management, a consultant said in a newly-released 60-page report.

“The team, while relatively new, is off to a good start,” Kereen Conley of professional advisory firm Rehmann said, while detailing additional findings at Northern Lakes Community Mental Health she described as disheartening.

“The organization has grappled with years of mistrust, fear of retaliation, harassment, intimidation, inconsistency, frustration, and unacceptable working conditions,” Conley said in the report.

“The impact on employees runs deep, with the root cause of most concerns traced back to a culture where top executives misused their authority, employing intimidation and retaliation as management tools,” Conley said.

Previous leadership was categorized only in general terms in the report and not listed by name, and neither former interim CEO Joanie Blamer nor former CFO Lauri Fischer were interviewed by Rehmann staff.

“They’ve now had a contractor issue a 60-some page report without ever talking to my clients,” said attorney Jay Zelenock who represents Blamer and Fischer. “Any suggestion that Joanie was in charge of the CMH and responsible for its culture for years . . . is false.”

The report has yet to be discussed by Northern Lakes’ board, although the board confirmed it will be on the agenda as a Q&A session for the June 20 regular meeting in Cadillac.

Northern Lakes receives a majority of its $90 million annual funding from Medicaid and provides services in six counties — Crawford, Grand Traverse, Leelanau, Missaukee, Roscommon and Wexford. It is governed by as many as 16 board members appointed to three-year terms by their respective county commissioners.

Conley’s report was made public during a May meeting of Northern Michigan Regional Entity’s board members. The Medicaid funder has for nearly two years provided oversight to Northern Lakes following a number of internal problems at the organization, including a lengthy CEO search that went awry.

NMRE leadership has since installed its own employee, Brian Martinus, as interim CEO of Northern Lakes, has contracted with Rehmann for certain consulting services, and directed Northern Lakes to also contract with the firm for additional services.

The human resources assessment report was part of that contract; Rehmann is also conducting an ongoing forensic audit of Northern Lakes’ finances and a report on those findings is yet to be delivered.

In September, Martinus placed his predecessor, former interim CEO Blamer, as well as CFO Fischer on paid administrative leave for reasons he declined to disclose.

At that time, Blamer was being paid about $110,000 annually as chief population officer; the board agreed to pay an additional ongoing stipend for her interim responsibilities and Fischer’s salary was about $105,000 annually, records show.

Months prior, Martinus fired former Human Resources Director Matt Leiter, Northern Lakes meeting minutes show.

Blamer, a social worker, was hired by Northern Lakes in 2006 as an emergency services adult support supervisor. Fischer was hired in 1997 to work in the accounting department.

Both worked their way up to become members of the organization’s leadership team, personnel records show.

Blamer resigned in April of this year and Fischer was fired last December, according to records the Record-Eagle received in response to a Freedom of Information Act request.

“During the pendency of your paid administrative leave, I have received additional information that has led me to conclude that it is not in the best interests of NLCMHA for you to continue as its Chief Financial Officer,” Martinus wrote in a Dec. 8, 2023, letter to Fischer.

Both former executives contend they did nothing wrong, were devoted to their jobs at Northern Lakes, and expected to stay with the organization until they retired.

Blamer and Fischer later filed whistleblower lawsuits against Northern Lakes in 13th Circuit Court, accusing the organization of rights violations and retaliation.

Records show Blamer last month accepted a $250,000 settlement agreement to end her lawsuit. Fischer’s lawsuit is ongoing, with a motion hearing seeking release of Rehmann documents scheduled to be argued in front of Judge Charles Hamlyn June 18.

Blamer, during her tenure leading the organization, was characterized by some as a divisive presence — dozens of employees signed a support letter when she was a candidate for the permanent CEO post, while others said she’d created a “culture of fear” and gave preferential treatment to close associates known in the organization as “Joanie’s cronies.”

On Saturday, Blamer praised the organization’s frontline staff, said she supported Northern Lakes’ mission to serve recipients, that she did not play favorites while she worked there and, instead, had organized events like internal town halls so employee concerns could be shared.

Blamer and Fischer also questioned the timing of the human resources assessment.

“We were walked out that Monday,” Blamer said of the Oct. 16, 2023, date she and Fischer were placed on paid administrative leave, “which ensured that neither Lauri nor I would be available to talk about the two areas that they were looking into — finance and HR.”

Conley’s report does not name Blamer, Fischer or Leiter. It states that “previous leadership” was associated with fairness complaints, record-keeping errors, privacy concerns, employee training deficits and possible pay equity issues.

Martinus, current Human Resources Manager Neil Rojas, Human Resources Specialist Becky Brown and Benefit Specialist Kris Rehling were identified by name in Conley’s report as being well-received by many new and longtime Northern Lakes employees.

Conley said employees in more than 40 in-person, one-on-one interviews also shared their commitment to people who receive services, expressed repeated apprehensions about job security, and a perceived lack of direction by the organization’s board.

“Questions loom regarding job security, the agency’s continued service to the population it serves, and whether the board comprehends the impact of its actions and words on the employees and the agency’s reputation,” Conley said in her report.

Board leadership also has undergone recent changes, which occurred after the finalization of Conley’s report, records show.

In May, board Chair Ben Townsend of Wexford County sought re-election, but lost that seat to Greg McMorrow of Leelanau County on a 10-4 vote.

Townsend on April 29 signed a glowing recommendation letter for Blamer: “During her time with us she had tackled all assignments requested of her with passion and dedication,” he said.

He lost the chairmanship position two weeks later.

Grand Traverse County Commissioner Penny Morris, who also serves on Northern Lakes board, was named vice chair in a unanimous, unopposed vote and Lynn Pope of Missaukee County was similarly voted in as secretary.