The Michigan Department of Health and Human Services (MDHHS) has withdrawn its request for proposals (RFP) to competitively procure Prepaid Inpatient Health Plans (PIHPs), ending the planned rebid process.
The decision follows a Jan. 8 ruling that found key elements of the RFP conflicted with provisions of the Michigan Mental Health Code. The court determined that the RFP, as drafted, restricted the ability of Community Mental Health Services Programs to carry out certain statutorily required functions, including entering financial contracts necessary to support managed care responsibilities.
While the court did not issue an injunction directing the state to withdraw the RFP, it identified multiple legal conflicts and left it to MDHHS to determine how to proceed. MDHHS has now opted to rescind the RFP rather than revise or reissue it.
With the withdrawal of the RFP, the existing PIHP structure will remain in place. It is unclear whether MDHHS will pursue a revised procurement approach or other policy changes moving forward.
Members with questions may contact Lauren LaPine-Ray at the MHA.