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Maine outsources behavioral health management
(December 2007 Issue)

By Phyllis Hanlon

According to Brenda M. Harvey, commissioner of the Department of Health and Human Services (DHHS), healthcare concerns are generating lively conversation around the country. In Maine, the dialogue has led to the appointment of APS HealthCare Midwest, a subsidiary of APS Healthcare Bethesda, Inc., to administer the state's behavioral health services.

Harvey reports that in the past, Maine had an "unmanaged system," in which the state contracted with individual providers for services and reimbursement, both Medicaid and non-Medicaid funded. "There was no continuity of care. Consumers often saw multiple providers and dealt with multiple plans," she says. "There was no clear medical home."

Maine's original idea to create a fully capitated managed care effort received significant pushback from several entities in the community. Acknowledging its inexperience in the area of managed care, Maine decided to outsource management of its behavioral health services and issued a request for proposal (RFP) to which approximately a dozen firms responded, according to Harvey. "We looked at organizational qualifications and experience, particularly with children with serious emotional disturbance and adults with mental illness, technical response and pricing/cost," she says. APS received "high marks" in the evaluation and scoring process and earned the contract, Harvey says.

Founded in 1992, APS Healthcare has served state governments since 1999 through its public programs division and has national experience in managing care for Medicaid members, according to Sarah Clark-Lynn, corporate communications manager. She adds that APS has collaborated on the successful implementation of complex systems and has an excellent reputation for quality improvement activities. "APS has programs in 28 states and Puerto Rico including total population management programs and behavioral health services," she adds.

In anticipation of potential roadblocks, DHHS initiated provider training assistance programs last year. Harvey notes that Maine has many small niche providers and previously did not have official reporting requirements. "Provider readiness to engage is something we paid attention to," she says. "We held mock utilization reviews with individual organizations to help them understand what we expect and to help them make preparatory shifts." Initially voluntary, the provider trainings became mandatory to ensure that all mental health providers comprehend the requirements.

Harvey and her department have not lost sight of the consumer in this new process. "If consumers have the experience of services being perceived or actually reduced, we'll pay attention to what kind of due process is necessary," she says. Clark-Lynn says, "[APS] services include retrospective review, prior authorization, continuing stay review, provider relations and training, quality management, customer 24/7 call center, analysis and reporting."

By appointing an outside firm to manage behavioral health services, Maine is demonstrating its continued efforts to provide comprehensive, consumer directed health care, Harvey says. "We're not just putting in administrators to pare back costs. We're not ignoring family and client participation and outcomes leading to recovery," she says. "By default, we'll achieve continuity of care." Maine clearly has adopted a policy of the right services at the right time and intensity for the right duration and right cost, according to Harvey.

APS is slated to assume responsibilities for Maine's behavioral health services this month (December 2007).