Lawsuit debuts with rally, fanfare

A health-care company sues a contractor and mental health offices in N.C. for $1 billion

DURHAM -- Willie Gary, the trial lawyer who is as noted for his jet-setting lifestyle as his cases against corporate giants, was in Durham on Wednesday to file a lawsuit that drew far more pomp than usual.

The Florida lawyer is representing Dominion Healthcare Services, a private, Raleigh-based mental health care provider seeking $1 billion from three county mental health offices and ValueOptions, the company hired by the state to review Medicaid patients' claims.

Joel Hopkins, Dominion's founder and CEO and a former Shaw University basketball coach, accuses ValueOptions and mental health offices in Durham, Wake and Mecklenburg counties of developing a scheme to dismantle his company and drive him out of business.

Several hundred Dominion workers and supporters gathered on the Durham County courthouse steps for a rally with prayer and calls for blind justice.

Gary, who flew to the Triangle on Tuesday in his plush private jet, touted the legal battle as one that was trying to simultaneously protect people in need of mental health care and the hundreds employed by the private provider.

"It's a justice issue," Gary boomed over the loudspeaker as admirers snapped cell-phone photos of him at a podium. "Our mentally challenged brothers and sisters pledge their allegiance to the same flag in the United States of America."

Several years ago, North Carolina made sweeping changes to to its mental health care system, divesting itself of treatment programs and turning to local communities to provide the care.

That opened the door for many private companies such as Dominion, which until recently did a big business in the state's largest counties.

The lawsuit comes as the state is accusing Dominion of doctoring some of its medical documents to justify Medicaid payments.

County mental health officials in Durham and Wake counties told Dominion late last year that they would take away the company's licenses to bill Medicaid.

But Dominion, which has appealed the state allegations, trumpeted a victory last week in state administrative court.

Judge Joe Webster said the counties had not given Dominion enough time to correct problems, as the rules require, before trying to revoke their license.

Gary said the county mental health offices and ValueOptions make it difficult to know what the rules are for service providers.

"They spend 90 percent of their time trying to find out why you shouldn't be in business," Gary said. "They change the rules like they change their outfits."

Representatives at the county offices listed on the suit declined to comment about the case, saying they had not yet been served with copies.

Gary said his clients were seeking $1 billion because financial analysts had said Dominion would have been on target to make $100 million this year if the state had not tried to close down offices.

Many in the crowd surrounding Gary and Hopkins said they planned to pay close attention to the suit as it winds through the system. Dwan Wall, a Dominion worker in Durham, said she would be watching.

"I hope this will make the officials take notice," Wall said. "The state just makes it a lot harder to get services."