Administration of Colorado’s CHIP Program Could Be Transferred from Not-For-Profit Group To For-Profit

Child Health Advocates, the not-for-profit organization that manages marketing, outreach and other administrative duties on a contract basis for Colorado's CHIP program, is in negotiations to be acquired by the for-profit Denver-based Policy Studies Inc., the Denver Business Journal reports. Over the last three years, CHA has managed the CHIP program, called Child Health Plan Plus, but has been criticized for the program's low enrollment and for spending too much money on administrative needs, rather than outreach. The Journal reports the possible $2 million sale of CHA to Policy Studies, which provides child-support consulting services to governments, could bring "more experienced management" to the program. CHA Executive Director Bonnie Sherman said, "As a not-for-profit ... we were incredibly limited in the way we could respond to outside opportunities and the way we could respond to state demands. We had no access to capital." If the deal comes to fruition, Policy Studies would assume control of CHA's CHIP contract and thus would handle outreach, provider network coordination, call center administration and systems development for the program. The state would need to approve any acquisition deal between Policy Studies and CHA, the Business Journal reports. Karen Reinertson, director of the state Department of Health Care Policy and Financing, said, "We are confident that Policy Studies is fully capable of assuming the responsibilities of the current state contract and will be able to address future needs of the program" (Fletcher, Denver Business Journal, 3/22).