Newsletter Articles | October 31, 1994
VBH Iowa Contract Nullified by Court
OPEN MINDS The Behavioral Health Industry Analyst
Industry News
Citing an "appearance of impropriety," an Iowa county court has nullified a $86.6 million contract between Value Behavioral Health (VBH) and the State of Iowa Department of Human Services that would have provided managed mental health services to about 190,000 enrollees of the Iowa State Medicaid program. Relying on federal law, Judge Arthur Gamble of Polk County ruled on October 14, 1994, that the state had "abused its discretion" by ignoring the appearance of a conflict of interest that resulted . . .