THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, November 30, 1995 TAG: 9511300371
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY JAMES SCHULTZ, STAFF WRITER
LENGTH: Short : 41 lines
A local mental-health provider, Options Mental Health Inc., is one of four winners in a $3.78 billion Defense Department contract announced Wednesday.
The company will provide and coordinate services to approximately 1 million eligible military beneficiaries in eight southeastern states.
Under the terms of the award, officials said the Norfolk-based firm, which employees some 2,000 in Hampton Roads, will receive about $225 million over five years.
``Tidewater is rapidly becoming a leading provider of managed mental-health care throughout the country, '' said Dr. Ronald Dozoretz, Options president and chairman. ``We're the only company with three mental health contracts with the federal government under the CHAMPUS program.''
CHAMPUS, the Civilian Health and Medical Program of the Uniformed Services, covers retired military, their spouses and dependents.
Three health benefit options will be made available to CHAMPUS beneficiaries. Participants may elect the traditional indemnity option, enroll in an HMO-like plan, or take advantage of reduced co-payments by using a network of preferred physicians.
Humana Military Healthcare Services Inc. in Louisville, Ky. has administrative responsibility for the Defense Department grant and will oversee the combined work of Options, Blue Cross and Blue Shield of South Carolina and CMG Health Inc.
According Dozoretz, this latest award boosts to $400 million the total value of federal contracts awarded to Options over the past 12 months. The firm will also be competing for future federal contracts related to mental-health services, he said.
``This is a business that just beginning to evolve,'' Dozoretz said. ``It's a huge opportunity for us.'' by CNB