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March, 2001 Michigan
Department of Community Health
Mental Health and Substance Abuse
Services
 Revised Plan for Procurement
of Medicaid Specialty Prepaid Health Plans
This document presents
the revised plan of the Michigan Department of Community Health (MDCH)
for procurement of Medicaid
specialty Prepaid Health Plans (PHP). The state has been working
on a plan for procurement for the last eighteen months and
previously issued (in September 1999) a preliminarily proposal
regarding competition for management of publicly-funded specialty
services.
During this period, MDCH
has had extensive discussions with beneficiaries, family members
of disabled individuals, advocacy organizations, public officials,
providers and CMHSPs regarding procurement of specialty PHPs. We
have learned much from these discussions and from the public
dialogue that has emerged around this topic. MDCH has thoroughly
examined the application of competitive procurement to specialty
services, with particular attention to the basic objectives of the
specialty services system, certain economic characteristics of
specialty care, and the outcomes of competitive managed specialty
arrangements in other states. 
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