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Magellan Files Protest Against Contract Award To Another Vendor

Magellan Health Services, Inc. (MGLN) Wednesday said it has filed a formal protest regarding the State's decision to award the Regional Behavioral Health Authority or RBHA in GSA6 (Maricopa County) to another vendor.

The decision to file the protest comes after the company evaluated the scoring of its bid and other relevant information regarding the bidding and award process.

The RBHA contract is for the management of the publicly funded behavioral health system, which delivers mental health, substance abuse and crisis services for about 720,000 eligible adults, youth, and children.

This includes an integrated behavioral and physical health care system for a small number of individuals with serious mental illness.

Magellan's existing contract to manage behavioral health services began on September 1, 2007. It was previously extended through September 30, 2013.

Magellan said its full year 2013 guidance assumed the contract would be awarded to Magellan Complete Care of Arizona. The company is assessing the impact of this award notification on its 2013 guidance, and will make any update to guidance during its first quarter earnings call on April 30.

by RTTNews Staff Writer

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