LANSING, Mich., Jan. 09, 2026 (GLOBE NEWSWIRE) -- Yesterday, Judge Yates, in the Michigan Court of Claims, issued an opinion and order in response to a suit filed by a number of Community Mental Health centers and public Medicaid behavioral health plans to halt the bid out (Request for Proposals – RFP) of the contracts currently held by the state’s public Medicaid behavioral health plans.
In that opinion, Judge Yates stated that “… the Court hereby issues a declaratory pronouncement that the RFP, as drafted, impermissibly conflicts with Michigan law in numerous respects, especially insofar as the RFP restricts CMHSPs from entering into financial contracts for the purpose of funding CMHSPs' managed-care functions. However, the Court will not yet issue injunctive relief that directs defendants to amend or pull back the RFP. Defendants must decide, in the first instance, how to address the conflicts between Michigan law and the RFP that the Court has identified.”
The Community Mental Health Association of Michigan (CMHA) released the following statement from CEO Robert Sheehan and Incoming CEO Alan Bolter in response to the court’s ruling.
“We are pleased that the Court recognized fundamental inconsistencies between the state’s attempt to bid out the management of Michigan’s public mental health system and Michigan law. Judge Yates’ questions and observations in the opinion underscored his substantial concerns relative to how the RFP violates the Michigan Mental Health Code and the statutory framework governing Michigan’s public behavioral health system.
“We appreciate the Court’s careful review and its acknowledgment that the bid out requirements raised serious legal and operational violations of the Michigan Mental Health Code—particularly those which would have prohibited the state’s public Community Mental Health centers from carrying out their statutory responsibilities, from providing a comprehensive set of services, from ensuring the rights of persons served, and the administration of essential mental health and substance use disorder services.
“Our members stand ready to work with the Department and stakeholders across the state in the design and implementation of bold system improvements and reforms to strengthen the system for the betterment of the people we serve. We remain committed to constructive collaboration that ensures any future changes comply with Michigan law and uphold the quality of mental health, intellectual and developmental, and substance use disorder services for individuals, families, and communities across the state.”
CONTACT: Molly Hisey
molly.hisey@llyc.global
