RFP - Prisoner Health Care and Pharmacy Services (5 years)

The Michigan Department of Technology, Management and Budget is conducting a Request for Proposal (RFP) for comprehensive Prisoner Health Care and Pharmacy Services on behalf of the Michigan Department of Corrections (MDOC). The procurement seeks an integrated care management model to provide medical services for approximately 36,000 prisoners across MDOC facilities, including primary care, psychiatric services, pharmaceutical services, specialty care, telehealth, and emergency services. Required deliverables include on-site healthcare at facilities like the 144-bed Duane L. Waters Health Center and a 200-bed psychiatric facility, with a focus on preventative measures, clinical outcomes, and evidence-based practices. Bidders may propose for both healthcare and pharmacy services or pharmacy services only, with technical proposals requiring a minimum score of 246 out of 308 points for full service bids or 121 out of 151 points for pharmacy-only bids. The mandatory pre-proposal meeting was held on September 17, 2020, with proposals due by October 19, 2020. The contract term runs from March 1, 2021, through September 30, 2026, with actual service delivery beginning October 1, 2021, and includes three optional one-year renewals.

The RFP does not explicitly mention specific set-aside designations for disadvantaged enterprises. The current incumbent vendor is Corizon Health Inc., with the previous contract valued at $715,733,760 for the period June 1, 2016 through May 31, 2021. The pricing model involves a per-prisoner-per-month (PPPM) base rate with a risk-sharing component for specialty care and pharmacy costs, including target and cap thresholds for cost sharing between MDOC and the contractor. Annual costs in the previous contract year were approximately $92 million for healthcare services and $27.7 million for pharmaceutical services, excluding Hepatitis C medications. The contract requires maintaining 340B pricing for specified drug categories and comprehensive reporting on rebates and discounts. Bidders must demonstrate capability to integrate with existing MDOC systems, including a new Corrections Offender Management System (COMS) planned for implementation by December 2022, and provide services across multiple correctional facilities, with approximately 26% of the prisoner population requiring mental health treatment.