Court Refuses Injunction Request in Texas NorthSTAR Medicaid Carve-out Challenge

OPEN MINDS, The Behavioral Health & Social Service Industry Analyst Industry News A U.S. District Court, on February 19, 1998, denied a request for injunctive relief filed by Southwest Community Behavioral Health Care (SCBHC), an entity formed by to halt the award of the Texas NorthSTAR Medicaid behavioral health care carve- out contract to Magellan Behavioral Health and ValueOptions. University of Texas Southwestern Health Systems and American Psychiatric Systems had formed a limited liability corporation to bid on a portion of the annual $93 million contract. The contract, under terms of state law, will be reviewed on a yearly . . .