Vaya Health and Partners Health Management plan to merge later this year following approval from North Carolina Department of Health and Human Services Secretary Devdutta Sangvai, creating what the organizations say will become the state’s largest publicly governed behavioral healthcare entity.
The consolidation, which remains subject to a successful readiness review, is scheduled to take effect Oct. 1, 2026. The combined organization will operate as Vaya Partners and serve more than 222,000 members across 47 North Carolina counties, significantly expanding the regional footprint of the state’s public behavioral health management system.
The merger combines two long-established Local Management Entity/Managed Care Organizations, or LME/MCOs, that oversee publicly funded services for residents with mental health conditions, substance use disorders, intellectual and developmental disabilities, and traumatic brain injuries. The organizations said the consolidation is intended to strengthen operational stability and create a more coordinated regional structure aligned with how care is delivered across North Carolina communities.
The transaction reflects broader pressures facing publicly funded healthcare systems as states continue shifting toward integrated care models that combine behavioral health, physical health, and long-term support services while managing rising demand and workforce challenges.
Under the agreement, Tracy Hayes, current area director and chief executive officer of Vaya Health, will lead the combined organization as CEO of Vaya Partners. Libby McCraw, chief executive officer of Partners Health Management, will become senior deputy CEO, while Rachel Porter, deputy CEO of Partners Health Management, will continue in her current executive role.
Hayes said the merger is designed to reinforce the long-term sustainability of North Carolina’s public behavioral healthcare system while expanding service coordination for members and county partners across the region.
McCraw said the consolidation would allow the organizations to expand their reach and operational impact while maintaining a focus on employees, providers, and community-based care delivery.
The organizations said members receiving services through either system will not experience immediate changes to benefits, providers, or care access. Contracted providers also are expected to continue operating under existing participation, billing, and administrative arrangements during the transition period.
Vaya Health currently oversees publicly funded healthcare services across a 32-county region of North Carolina, managing Medicaid and other state, federal, and local funding tied to behavioral health and disability services. Partners Health Management serves Medicaid beneficiaries and uninsured or underinsured residents across 15 counties and has built its operations around its community-based care model focused on localized behavioral healthcare delivery.
The merger creates one of the largest regional behavioral health management organizations in the state at a time when North Carolina continues restructuring portions of its Medicaid and behavioral health systems to improve coordination, reduce fragmentation, and expand access to integrated care services for vulnerable populations.