Director exits as critics hit N.C. mental health system's poor service, runaway costs

A recent overhaul of the system, which cares for 350,000 people, left seriously mentally ill people without community care. In the last two years, the state has spent too much on a basic mental health service provided by private companies; meanwhile, reviews determined that thousands getting the service didn't need it. And in the last year, investigators found problems at all four of the state's mental hospitals.

But in the early years of Moseley's tenure, the system of private providers failed to develop in communities. Meanwhile, local mental health offices complied with a mandate to stop treating patients. People seeking short-term care overwhelmed state hospitals.

When the community treatment network started to bloom in early 2006, private companies rushed to provide a basic but costly service called community support. Costs exploded while people who needed more intensive treatment could not find it.