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Mental health vendor transition draws committee attention; department corrects participant count and outlines savings claim
Summary
The Department of Mental Health presented contracts to transition vendor services from Allied to Acumen and to continue specialized software and evaluation work. Officials corrected a cover-sheet participant count to 902 and said the self‑directed waiver saves state dollars relative to institutional care.
The Alabama Department of Mental Health told the Contract Review Committee it will transition some vendor services from Allied to Acumen and that it needs interim support and software for billing, provider certification and case management.
Brian Penn of the department said Acumen won an RFP and will begin Oct. 1, with full operations starting Jan. 1. Allied will remain on contract during the transition to assist with database migration. Penn corrected an incorrect number on the cover sheet: "That number on the cover sheet, I didn't notice it till today is, incorrect. That should be 902," he said, referring to the number of participants in the self‑directed care waiver.
Penn described the program’s fiscal profile and relative cost: the department contracts with third‑party fiscal agents (physical agents) who bill at roughly $96 per person per month to perform payroll and billing functions for providers. He said state spending on the program is about $50.5 million per year and that relying on home‑based, self‑directed services rather than group homes produces savings over time. "If we went to group homes, the average cost of a group home is $94,000. So doing this is state saving over 2 years $61,000,000 by... allowing this waiver," Penn told the committee.
Penn also explained the role of Therap, the software vendor, which provides the case‑management and billing platform and technical assistance. He said the Therap contract was procured via RFP and will likely be rebid before its stated expiration; other vendor agreements include contract amendments that add time but no additional funds.
Committee members asked clarifying questions about services and timelines; officials confirmed Acumen’s contract start dates and that Allied will provide transition services. The transcript records no formal committee vote on these procurements during this meeting.
