DCS_CMDP_Letter_HCA_021420.pdf
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- Attached to
- Master Agreement AZ|CTR050520
- Contract number
- CTR050520
- Issued by
- Arizona
About this file
This document is a letter dated February 14, 2020, from Shawn Nau, Chief Executive Officer of Health Choice Arizona, Inc., addressed to Mike Faust, Director of the Arizona Department of Child Safety (DCS). The letter pertains to a Request for Proposal (RFP) for the Children's Medical Decision Provision (CMDP) program, involving Health Choice Arizona and the Arizona Department of Child Safety.
The letter outlines Health Choice Arizona's proposal to serve foster children under a potential contract, noting that they have not submitted a formal actuarial rate proposal or redlined contract due to limited available data. The company suggests using AHCCCS' staff and process to determine capitation rates as part of a hybrid risk model. Health Choice recommends using the DD or AHCCCS ACC contract as a basis for discussion and is open to meeting with DCS to work through contract documentation issues. The proposal aims to evolve the current system for managing medical services for foster children, though it is not a formal offer to contract.
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Health Choice Arizona 1300 S. Yale Street, Flagstaff, AZ 86001 T: 928-774-7128 F: 855-408-3400 stewardhealthchoiceaz.com
Submitted via e-mail
February 14, 2020
Mike Faust, Director Arizona Department of Child Safety PO Box 6030, S/C CH010-23A Phoenix, Arizona 85005-6030
Re: CMDP Request for Proposal
Dear Director Faust:
Health Choice Arizona, Inc. (“Health Choice”) is pleased to submit the accompanying proposal to serve foster children under contract with the Department’s CMDP program. Based on our conversations with you and CMDP staff, we believe that the accompanying proposal best addresses the Department’s desire to evolve the current system. And although our proposal does not represent a formal offer to contract or response to a request for proposals, we firmly believe that the concepts included above are capable of being quickly reduced to contract if the Department of Children’s Services is in substantial agreement with our overall approach.
Please note that we have not chosen to submit an actuarial rate proposal or a redlined contract document based on the Department’s most recent RFP. Given both the limited amount of time and the relatively high level of the data made available to us, we do not believe that such a proposal would be even remotely accurate. As discussed more fully in our proposal, we agree with DCS that the best approach would be to use AHCCCS’ staff and process to determine capitation rates as part of a hybrid risk model.
Likewise, we have struggled with attempting to redline a contract that clearly was intended for an ASO model (for a limited set of services) into a risk model with a much broader set of managed care services. Health Choice would recommend that we start with the DD or AHCCCS ACC contract as a basis for discussion. If DCS is interested in the proposal Health Choice has outlined, we would be happy to quickly meet with DCS and work through these contract documentation issues promptly.
On behalf of Health Choice, I thank you for your willingness to meet with us, and for the opportunity to discuss this important set of service for children and families in Arizona. As always, please feel free to contact myself at shawn.nau@steward.org or (970) 759-5330 should you have any questions.
Sincerely, Shawn Nau Chief Executive Officer Health Choice Arizona, Inc.
mailto:shawn.nau@steward.org
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