In a somewhat positive reversal for Nashville, Tenn.-based Vanguard Health Systems, the Arizona Medicaid program has awarded a three-year capped contract to the for-profit hospital chain's Phoenix-based health plan.
Last month, the Arizona Health Care Cost Containment System denied a contract to Vanguard's VHS Phoenix Health Plan, a Medicaid managed care plan, for this upcoming fiscal year but did not say why. Vanguard then requested that AHCCS allow the health plan to receive a capped contract in two counties, Maricopa and Pima, where more than 98,000 of PHP's members reside.
AHCCS and Vanguard accepted the terms, and PHP will cover Medicaid beneficiaries in those two counties starting Oct. 1. PHP's enrollment cap cannot be lifted at any time during the three-year contract, except if AHCCS deems otherwise. Vanguard also cannot protest any of AHCCS' decisions.
In FY 2012, PHP brought in nearly $636 million of Vanguard's total revenue.
Last month, the Arizona Health Care Cost Containment System denied a contract to Vanguard's VHS Phoenix Health Plan, a Medicaid managed care plan, for this upcoming fiscal year but did not say why. Vanguard then requested that AHCCS allow the health plan to receive a capped contract in two counties, Maricopa and Pima, where more than 98,000 of PHP's members reside.
AHCCS and Vanguard accepted the terms, and PHP will cover Medicaid beneficiaries in those two counties starting Oct. 1. PHP's enrollment cap cannot be lifted at any time during the three-year contract, except if AHCCS deems otherwise. Vanguard also cannot protest any of AHCCS' decisions.
In FY 2012, PHP brought in nearly $636 million of Vanguard's total revenue.
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