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Lifeways CEO‑select outlines accreditation, sheriff partnership and state PIHP procurement dispute
Summary
Lifeways’ CEO‑select Cassandra Watson briefed Jackson County commissioners on accreditation progress, a new SAFE registry partnership with the sheriff’s office for residents with special needs, and ongoing uncertainty tied to a state PIHP procurement that is the subject of Court of Claims litigation.
Cassandra Watson, Lifeways’ CEO‑select, told the Jackson County committee that the behavioral health provider is pursuing CARF accreditation required by MDHHS and the Michigan mental health code and is seeking several accreditations listed in the provider’s November report.
Watson described a new partnership with the Jackson County sheriff’s office to create a SAFE registry for people whose medical or developmental conditions can affect their response to crisis. The program will allow residents to sign up so emergency responders and EMS are informed of special needs during calls; participants also may receive window stickers to alert responders at residences, Watson said.
Watson also summarized state‑level procurement activity tied to PIHPs (Prepaid Inpatient Health Plans). She said bids were due Oct. 13 and that Lifeways’ PIHP, Midstate Health Network, submitted a nonconforming bid and is unlikely to be selected though a chance remains. A number of PIHPs and CMHSPs have filed suit against the Michigan Department of Health and Human Services (MDHHS). Watson said Judge Yates of the Court of Claims acknowledged MDHHS’s ability to competitively procure regional entities but that the court must still resolve whether the state’s procurement improperly removes managed‑care functions delegated to CMHSPs by the Michigan mental health code. A court ruling was expected in early December, and bid selection could proceed in mid‑December, Watson said.
Watson told commissioners that some line‑item changes in the FY26 state budget reflect a shift in payment flows — including direct payments to certified community behavioral health clinics (CCBHCs) — rather than a net reduction in Medicaid behavioral health funding. She said the county‑area funding Lifeways receives is capitation‑based and tied to the number of Medicaid‑eligible residents in its Jackson and Hillsdale service area.
The Lifeways presentation closed with an overview of internal planning should federal or state changes reduce Medicaid coverage. Watson said Lifeways is assessing options to tighten services and reduce costs while monitoring how the state will act before final decisions are made.
