DHH Secretary Greenstein Resigns (1 Viewer)

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Winner of billion dollar state DHH contract fails to disclose company

A company that was chosen over 11 other companies for a state contract worth nearly $1 billion may have violated a state law in 2011 when it submitted a sworn affidavit that no other entities owned more than 5 percent of its company.
When Michael Rashid, president and CEO of the AmeriHealth Mercy Family of Companies (AMFC) signed off on a three-year, $926 million contract with the Department of Health and Hospitals (DHH) in September of 2011, he submitted a required disclosure of ownership dated Oct. 7, 2010 and signed by AMFC Senior Vice President of Legal Affairs and General Counsel Robert Gilman.
The contract calls for AmeriHealth Mercy to provide “a broad range of services necessary for the delivery of healthcare services to Medicaid enrollees participating in the Medicaid Coordinated Care Network (CCN) Program.”

While BCBS companies are supposedly separate and independent in each state and though BCBS of Louisiana currently does not participate in a state Medicaid contract (its contract is with the Office of Group Benefits to administer claims of state employees, retirees and dependents), BCBS has been moving in partnership with AmeriHealth Mercy into other states, including Florida.
The AmeriHealth Mercy contract signing coincided with Greenstein’s appointment and his wife’s employment by BCBS of Louisiana but there is nothing to indicate a connection.
Still, the association between two separate Blue Cross companies and the winner of a state contract worth nearly $1 billion coupled with the curious failure of the winning bidder to list both its owners on the disclosure of ownership form could raise a few eyebrows.
 

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