THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, January 4, 1995 TAG: 9501040390
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MARIE JOYCE, STAFF WRITER
LENGTH: Short : 37 lines
Options Mental Health has landed its second major contract to provide mental health service to a western state.
The company, a division of Norfolk-based First Hospital Corporation, learned Tuesday that it has been selected to manage mental health services for Medicaid patients in Colorado. Two weeks ago, Options was chosen for a similar contract with the state of Nebraska.
Medicaid is the government program that provides medical services for the poor.
Although final details must be worked out, company officials estimate that the Colorado contract will bring in about $26 million a year for each of the next two years, making it Option's second largest contract in terms of annual revenue. The largest is the Nebraska deal, with an annual revenue of about $30 million.
Options will be responsible for all the Medicaid patients in several districts of Colorado, a total of about 70,000 people. Four other companies will handle Medicaid recipients in the rest of Colorado.
The Options contract in Nebraska is for the entire state and covers about 90,000 people.
Options will set up a local service center in Colorado, and will add most of its new employees out there, except for some local claims-processing workers.
Company officials say they plan to use managed-care techniques to make the Medicaid mental health services more cost-effective. by CNB