Large Nebraska Psychiatric Care Provider Withdraws from Medicaid Managed Care Program

"One of Nebraska's largest providers of psychiatric care" announced on Oct. 19 that it had "ended its relationship" with the company that runs the state's Medicaid managed care program for mental health, "leaving more than 2,500 mentally ill children and adults to search for new therapists and treatment programs," the Omaha World-Herald reports. Alegent Health Care in Omaha said that it will no longer accept patients from ValueOptions, which has managed the state's Medicaid mental health program for six years. Alegent, however, will continue to serve existing Medicaid beneficiaries until new providers and therapists can be found. Richard Young Center, Ohama's other psychiatric hospital, has already said it will end its participation in ValueOption's network at the end of the year. Both providers cited increased denials of care at ValueOptions for their decision to withdraw from the program. According to Alegent and Richard Young, ValueOptions has denied four times as many requests for care this year compared to 2000; the World-Herald reports that the company's denial rate in the second quarter "nearly doubled previous rates." Officials from ValueOption "acknowledge" that denials have increased, but "place some blame on providers for failing to create alternatives to inpatient care that are cheaper and equally effective." They also said that the state has not adequately funded the Medicaid mental health program (Olson, Omaha World-Herald, 10/23). For further information on state health policy in Nebraska, visit State Health Facts Online.