Illinois DHS Negotiating With ValueOptions for $28 Million Mental Health ASO Contract

On September 7, 2007, the Illinois Department of Human Services (DHS) began negotiations with ValueOptions, Inc., on an estimated $28 million contract to provide administrative services for the Division of Mental Health as it transitions from grant-based funding to a fee-for-service financing system. The initial term of the contract is expected begin October 1, 2007, and end June 30, 2008. The initial term of the contract is valued at $8.4 million and the full contract has an estimated value of $27.9 million, which includes two, 1-year, renewal periods. The contract is the result of a request for proposals (RFP HS7-DMH-18965) issued on March 26, 2007, with a due date of May 17, 2007. Proposals were also submitted by APS Healthcare Midwest, Beacon Health Strategies, Magellan Behavioral Health, Inc., and United Behavioral Health. Because negotiations were ongoing as of September 28, 2007, no further information was available from DHS or ValueOptions.

According to the RFP wording, as the DHS ASO contractor ValueOptions will develop a web site and provider handbooks, and train providers to prepare for the January 2008 launch of fee-for-service billing. In addition, ValueOptions will help DMH develop a recovery- and resiliency-driven service delivery system. In this role, ValueOptions will facilitate consumer and family communications.

DHS sought a firm to provide administrative services to administer the transition from grant-based funding to the new fee-for-service financing and to provide quality review services for community- and hospital-based mental health services. The contract includes management of mental health services provided through the Medicaid rehabilitation option, targeted case management, and non-Medicaid services. Since 2004, DHS has been preparing its community-based services for the transition.

The full text of the RFP, HS7-DMH-18965, may be accessed through the OPEN MINDS Industry Resources Library page at www.openminds.com/circlehome/indres/100107ildhsasorfp.htm.

The full text of a presentation about the transition project given on April 5, 2007, at a vendor’s conference may be accessed through the OPEN MINDS Industry Resources Library page at www.openminds.com/circlehome/indres/100707ildhsasorfppres.htm.

On April 18, 2007, DHS released responses to questions submitted at the vendor’s conference and to the procurement officer. The questions and responses may be accessed through the OPEN MINDS Industry Resources Library page at www.openminds.com/circlehome/indres/100107ildhsasorfpmoreqa.htm.

For more information contact: Tom Green, Communications Officer, Illinois Department of Human Services, Room 611, Stratton Building, 401 S. Spring, Springfield, Illinois 62706;217-558-1538; E-mail: tom.green@illinois.gov; Web site: www.dhs.state.il.us: or Christopher T. Power, Ph.D., 319 E. Madison, Suite 3B, Springfield, Illinois 62762; 217-782-6470; Fax: 217-785-3066; E-mail: chris.power@illinois.gov; Web site: www.dhs.state.il.us/page.aspx?item=29763; or Steve Anderson, Vice President of Public Relations & Communications, ValueOptions, Inc., 12369 Sunrise Valley Drive, Suite C, Reston, Virginia 20191; 703-390-5225; E-mail: steve.Anderson@valueoptions.com; Web site: www.valueoptions.com; or Candice W. Nardini, ValueOptions, Inc., 240 Corporate Boulevard, Norfolk, Virginia 23502; 757-459-5200; Fax: 757-459-5200; E-mail: candice.nardini@valueoptions.com; Web site: www.valueoptions.com; or Sarah Clark-Lynn, Manager, Corporate Communications, APS Healthcare, Inc., 8403 Colesville Road, Silver Spring, Maryland 20910; 800-305-3720, ext. 3266; Fax: 301-563-7338; E-mail: sclynn@apshealthcare.com; Web site: www.apshealthcare.com; or Peter O'Connor, Media Director, Beacon Health Strategies LLC, 500 Unicorn Park Drive, Woburn, Massachusetts 01801-3393; 781-994-7500; Fax: 781-994-7600; E-mail: Peter.O’Connor@beaconhs.com; Web site: www.beaconhealthstrategies.com; or Erin Somers, Senior Vice President of Public Relations & Communications, Magellan Health Services, Inc., 6950 Columbia Gateway Drive, Columbia, Maryland 21046; 410-953-2405; Fax: 410-953-5209; E-mail: essomers@magellanhealth.com; Web site: www.magellanhealth.com; or Brad Lotterman, APR, Public Relations Manager, Specialized Care Services, United Behavioral Health, 3100 Lake Center Drive, M/S: LC03-252, Santa Ana, California 92704; 714-445-0453; Fax: 714-445-0765; E-mail: brad.lotterman@phs.com; Web site: www.optumhealth.com.