Valley Mental Health protests counties' mental-health care change

SALT LAKE CITY — For 23 years, Valley Mental Health has administered behavioral counseling and treatment services for Salt Lake, Tooele and Summit counties. But that is likely to change now that Salt Lake County has chosen a Minnesota-based managed care firm to take over some of those duties.

Last week, a county review panel chose OptumHealth to provide mental health services to children, adults and seniors of Utah's most populous county, a decision that prompted a formal protest from the agency that has provided care for more than two decades. The contract would be worth an estimated $55 million over 18 months beginning in January 2011, with an option for one 2-year renewal extension after June 2012.

"We are challenging the award of the contract," Christopher Katis, communications director for Valley Mental Health told the Deseret News. He said this is the first time VMH has had to bid on a contract to provide services, but the agency has received criticism over the years regarding the effectiveness and administration of its program services.

VMH is a private, nonprofit organization with 1,200 employees that provides mental health and substance abuse services for about 21,000 clients annually in Salt Lake, Summit and Tooele County counties.

The county panel will likely render a decision on the VMH bid protest within the next two weeks, according to Richard Chamberlain, director of the Salt Lake County Division of Contracts and Procurement.

The objection surrounding the contract award is targeted toward a specific area of behavioral services, according to Debra Falvo, VMH chief executive officer.

Falvo said the protest questions whether OptumHealth has a sufficient local provider network to serve the needs of Salt Lake County residents.

"That's what we're challenging," she said. "We do not believe they have (the) system in place (to provide adequate services)."

Falvo said the system put forth by OptumHealth does not currently specify a panel of local providers that would be capable of servicing clients, many of whom are low-income. She added that approximately 80-percent of the people her agency serves "live at or below the poverty level," making those generally in receiving treatment "an economically challenged population."

As for what outcome VMH would most like to see from the protest, Falvo said, "We want to remain the comprehensive mental health center that provides a comprehensive, integrated level of care for people with serious mental illness."