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County committee backs resolution opposing stateplans to privatize PIHP procurement

Clinton County Ways and Means Committee · June 21, 2025

Summary

The committee approved a resolution opposing state plans to competitively procure prepaid inpatient health plans, with local CMH leadership warning that privatization would remove delegated local control and fragment services for vulnerable residents.

The Ways and Means Committee voted to support a resolution opposing the state's proposed competitive procurement process for prepaid inpatient health plans (PIHP). The resolution was introduced by staff and explained in detail by Sarah Lurie, executive director of the Clinton‑Eaton‑Ingham Community Mental Health Authority.

Lurie framed the issue as one of local control and continuity of care, warning that a state move to an RFP-based or privatized PIHP would remove local delegated management: "What the state is looking to do would be to privatize that level, the PIHP level," she said. Lurie said local management allows the CMH to immediately authorize services, contract with local providers and respond during crises; she urged the committee to pass the resolution as a statement to the state that local management should be preserved.

Commissioners voiced support, cited personal experiences with local CMH services and expressed concern that privatization would prioritize profit over service. One commissioner abstained from the vote due to an employment conflict. The committee passed the resolution and will forward it to the full board.

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