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STATE SEEKS NEW
TENNCARE BEHAVIORAL HEALTH CONTRACTS

New contract provides better oversight

NASHVILLE –The state is seeking new contractors for the TennCare Partners Program, which provides behavioral health services for the 1.3 million people in the state’s TennCare program. Proposals will be received until October 22, 2003.

“This is an important next step for service development in the Partners program,” said Commissioner Virginia Trotter Betts of the Department of Mental Health and Developmental Disabilities (MHDD), which oversees behavioral health services for TennCare members. “New contracts for TennCare behavioral services will enhance stability in the program while giving the state greater fiscal oversight and management of the behavioral health organizations.”

The Request for Proposals (RFP) for behavioral health contractors divides the state into three grand regions for services. This model aligns with the TennCare bureau’s strategy to have more than one behavioral health contractor and reduces the potential problems associated with a single contractor for these services. The state is also seeking proposals for a “safety net” behavioral health organization (BHO). This option will afford the state some assurance that, should a contracted BHO fail, there will be minimal disruption of services to TennCare enrollees.

The state has set a contractor signing deadline of November 20, 2003, with a start date of January 1, 2004 for two-year behavioral health contracts. During the contract period, the state will formulate long-term plans for the mental health service system that are consistent with Governor Phil Bredesen’s strategy on health care. These long-term plans will include evidence-based decisions in a delivery system with priorities of early intervention, recovery, and the enhancement of community-based services.

“The new business proposal re-frames TennCare behavioral health services so we can better understand some of the high-cost utilization in the program and achieve better health care outcomes through disease management,” Commissioner Betts said.

The new RFP for BHOs is posted on the home Web page for MHDD, at http://www.state.tn.us/mental. TennCare is the state’s managed care health insurance program for 1.3 million members who are poor, disabled or uninsured.