Vaya and Partners Merge to Form NC's Behavioral Health Titan

ASHEVILLE/GASTONIA, NC – May 22, 2026 – North Carolina is set to witness the formation of its largest publicly governed behavioral health organization, as Vaya Health and Partners Health Management have received state approval to merge into a new entity named Vaya Partners. The consolidation, greenlit by North Carolina Department of Health and Human Services (NC DHHS) Secretary Devdutta Sangvai, will become effective October 1, 2026, pending a successful readiness review.

The new organization will create a massive managed care footprint, serving more than 222,000 members across 47 counties. Vaya Partners is tasked with managing public funds and overseeing integrated, whole-person care for individuals with complex needs, including mental health conditions, substance use disorders, intellectual and developmental disabilities (I/DD), and traumatic brain injuries (TBI). The move signals a significant structural shift in the state's public health landscape, aiming for greater stability and reach.

A Strategic Shift in a Transforming System

The creation of Vaya Partners is not an isolated event but the latest chapter in North Carolina's multi-year effort to reform its public health system. State officials and the General Assembly have been methodically consolidating the state's Local Management Entity/Managed Care Organizations (LME/MCOs) to create larger, more financially stable entities capable of handling the complexities of modern managed care.

This consolidation strategy is deeply intertwined with the state's landmark Medicaid Transformation project. A cornerstone of this reform was the July 1, 2024, launch of the Behavioral Health and I/DD Tailored Plans. These specialized plans are designed to provide integrated physical, behavioral, and pharmaceutical care for North Carolinians with the most significant needs. The successful operation of these Tailored Plans requires large, robust organizations with extensive provider networks and sophisticated care management capabilities—a scale that the newly formed Vaya Partners is designed to achieve.

The landscape has already seen significant change, with the number of LME/MCOs shrinking from eight to four in recent years. This merger continues that trend, combining Vaya's 32-county region with Partners' 15-county region to form a contiguous and powerful service area.

“This merger represents a shared vision of a stronger health plan that will bolster North Carolina’s public behavioral health/IDD/TBI system, support our county partners, and serve even more North Carolinians on their journey toward health and wellness,” said Tracy Hayes, Area Director and Chief Executive Officer of Vaya Health, who will lead the new organization.

The Promise and Pressure of Unprecedented Scale

By combining forces, Vaya Partners will span a vast territory from the mountains to the piedmont, covering a diverse mix of urban, suburban, and rural communities. The consolidation aims to create a "more connected and cohesive region that better reflects how care is delivered," according to the official announcement. Proponents believe this scale will enhance the long-term viability of the public system, allowing for greater investment in technology, data analytics, and innovative care models.

However, the sheer size of the new entity presents formidable operational challenges. The primary task will be the seamless integration of two large, distinct organizations. This involves harmonizing everything from internal cultures and IT systems—such as Vaya's provider portal and Partners' "ProviderCONNECT"—to the complex web of provider contracts, billing procedures, and claims processing.

The entire process is contingent upon a "successful readiness review" by NC DHHS. This is not a mere formality. State regulators will meticulously scrutinize Vaya Partners' ability to ensure network adequacy, financial solvency, data integrity, and, most importantly, continuity of care for its 222,000 members. Past LME/MCO consolidations in the state have sometimes led to short-term disruptions for providers navigating new administrative requirements, a hurdle the new leadership team is keen to avoid.

What the Merger Means for Patients and Providers

For the thousands of individuals and families who rely on Vaya and Partners for essential services, the immediate message from leadership is one of stability. The organizations have emphatically stated that members will experience no changes to their benefits or their relationships with trusted providers. Likewise, contracted providers are being told to continue operations as usual, with no immediate changes to billing or administrative processes.

This focus on continuity is critical for a population with complex and often chronic conditions. The ultimate goal of the merger, from a service perspective, is to leverage the combined organization's strengths to improve care integration and access. For example, Partners Health Management has been recognized for its innovative "Community Model," which emphasizes localized, person-centered care. A key measure of the merger's success will be its ability to scale such successful local initiatives across the new 47-county region without losing the community-level focus.

“This consolidation brings together the strength, experience, and shared commitment of both organizations to better serve members and communities across North Carolina,” said Libby McCraw, Chief Executive Officer of Partners Health Management. “Together, we are advancing our shared commitment to Improving Lives and Strengthening Communities.”

A Unified Leadership Team to Forge a New Path

To navigate the complexities of this integration, a blended leadership team has been established, drawing from the executive ranks of both Vaya and Partners. Tracy Hayes, the current Area Director and CEO of Vaya Health, will serve as Area Director and CEO of Vaya Partners. Hayes brings nearly two decades of experience with North Carolina's Medicaid program, including a deep understanding of its regulatory framework.

She will be joined by Libby McCraw, the current CEO of Partners, who will assume the role of Senior Deputy CEO. McCraw's extensive background in hospital operations and her recent experience overseeing the Tailored Plan implementation at Partners will be vital. Rachel Porter, currently Deputy CEO at Partners, will continue in that role, bringing over 25 years of healthcare experience and a focus on communications and stakeholder engagement.

This leadership structure is designed to blend Vaya's experience with large-scale public management with Partners' recognized community-centric models. The team's first and most critical test will be to unify two distinct organizational cultures and operational frameworks. Their ability to foster collaboration, maintain transparency with stakeholders, and execute a meticulous integration plan will determine whether Vaya Partners can deliver on its promise of creating a stronger, more effective public behavioral health system for a significant portion of North Carolina.