Printer Friendly

Medco Behavioral Care of Iowa awarded contract to manage State of Iowa Medicaid Managed Mental Healthcare Program.

DES MOINES, Iowa--(BUSINESS WIRE)--Nov. 21, 1994--Medco Behavioral Care Corp. (MBC) announced Monday that the Iowa Department of Human Services (DHS) awarded its Iowa subsidiary a contract to manage the State's Medicaid Managed Mental Health Care Program (MMHCP).

The MMHCP is designed to provide comprehensive mental health clinical and administrative services to approximately 190,000 Medicaid-eligible individuals throughout the entire State of Iowa. The two-year contract, which commences on March 1, 1995, is valued at approximately $46 million per year.

The award of this contract to MBC of Iowa was made following the disqualification of Value Behavioral Health Inc. (VBH) from the bidding process. VBH had initially been awarded the contract by DHS. However, a Polk County District Judge ruled in October 1994 that VBH had an organizational conflict of interest that resulted in their disqualification from the award. Given the State's and DHS' strong interest in rapidly accruing the quality improvement and cost savings results expected from the implementation of the MMHCP, DHS elected to award the contract to MBC of Iowa, which was the sole remaining bidder receiving a qualifying score for the program from the Evaluation Committee.

In addition to offering an entirely local service operation to serve the MMHCP, MBC of Iowa offered the lowest allowable rate proposal, which guarantees the State a minimum savings of 14 percent as compared to the current rate of expenditure, or in excess of $16 million over the life of the contract. Aside from MBC and VBH, six other managed behavioral healthcare companies vied for the award.

Commenting on the award to MBC of Iowa, Shannon R. Kennedy, Ph.D., president and chief operating officer of MBC, stated, "We are delighted to have this opportunity to work in partnership with DHS to build a program that effectively serves the very complex and compelling needs of Iowa Medicaid beneficiaries and we commend the DHS for the rigor with which they undertook the full evaluation process. Our company's extensive experience with Medicaid programs has enabled us to offer a locally-managed program which will not only enhance access to care for tens of thousands of people, but will also result in significant savings to the State of Iowa. MBC of Iowa, its employees and its affiliated healthcare providers are dedicated to ensuring that the Medicaid beneficiaries are well-served and that the core mission of DHS is achieved."

MBC of Iowa is a subsidiary of Medco Behavioral Care Corp. (MBC). Headquartered in Park Ridge, N.J., MBC provides managed behavioral healthcare services to over 13.5 million people in 50 states. MBC is a subsidiary of Medco Containment Services Inc., which is a subsidiary of Merck & Co. Inc.

CONTACT: Medco Behavioral Care Corp.
 Lisa Suennen, 415/742-0317 (work hours)
 or 415/383-1227 (after hours)
COPYRIGHT 1994 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Nov 21, 1994
Previous Article:Harvard Medical School and Massachusetts General Hospital find Aware's Compression Technology superior in image quality.
Next Article:Gannett Broadcasting and NBC make announcement.

Related Articles
Foundation Health is awarded follow-on contract for Massachusetts Medicaid program.
Medco Behavioral Care Corporation (MBC) management and Kohlberg Kravis Roberts & Co. to acquire MBC from Merck & Co.
Horizon Health Corporation Announces Acquisition of ChoiceHealth, Inc.; Also Announces Signing of a Research Agreement With Eli Lilly and Company.
Comprehensive Care Corp. Reports That it is Not Selected as Winning Bidder for Managed Care Contract in Argentina.
Comprehensive Behavioral Care Awarded New Contract, Expands Into Florida Employer Market.
MAXIMUS Awarded $73.7 Million New York Health Care Rebid.
Colorado Signs $4.7 Million Healthcare Enrollment Contract with MAXIMUS.
Acumentra Health Signs Contract to Perform External Quality Review of Oregon's Medicaid Managed Care Program.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters