Vanguard Health Systems, Inc. (VHS: Quote) said that its Phoenix, Arizona health plan subsidiary, VHS Phoenix Health Plan, LLC failed to win a new contract with Arizona's Medicaid agency for an acute care program.
The company said that VHS Phoenix Health Plan received a letter from the Arizona Health Care Cost Containment System or AHCCCS on Friday March 22, 2013, informing that PHP was not awarded an acute care program contract for the program year commencing October 1, 2013.
Under its current contract with AHCCCS that expires on September 30, 2013, PHP covers members in nine Arizona counties: Apache, Coconino, Gila, Maricopa, Mohave, Navajo, Pima, Pinal and Yavapai. PHP has served Arizona residents since 1983.
PHP had submitted its bid pursuant to the terms of AHCCCS's request for proposal. As an unsuccessful incumbent acute care contractor in Maricopa and Pima counties, filed a formal request on March 23, 2013, to receive a capped contract in those two counties.
If AHCCCS exercises its discretion to grant PHP's request with respect to either or both of those counties, PHP would continue to provide services to its existing members in those counties under the terms and conditions of the RFP, but would not receive any new members as long as enrollment remains capped. PHP anticipates a response to its formal request by March 31, 2013.
PHP also has the right to protest AHCCCS's decision. If it chooses to do so, PHP must file its protest no later than April 1, 2013.
by RTT Staff Writer
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