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Crook County health contractor urges approval of PacificSource CHP contract with reservations
Summary
Best Care Treatment Services recommended Crook County sign an 18-month CHP contract with PacificSource despite cuts to local behavioral-health funding, citing claims-processing errors, layoffs and the possibility of formal complaint or legal action if problems continue.
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Rick Chvin, Crook County community mental health director and CEO of Best Care Treatment Services, recommended on June 10 that the county sign an 18‑month Community Health Plan (CHP) contract with PacificSource ‘‘with reservations’’ to maintain continuity of behavioral‑health services.
Chvin told the board the proposed contract represents roughly a 10% reduction in resources to Crook County’s CHP at a time when PacificSource’s rolling 12‑month profit was about 3.7% — above the 2% profit level allowed by contract. He said repeated errors by PacificSource’s claims department have held payments and cost ‘‘hundreds of thousands of dollars a year,’’ and that Best Care is ‘‘considering a formal complaint and legal action.’’ Chvin also said PacificSource has eliminated performance‑based contracting in the region and is undergoing staff layoffs that have reduced institutional knowledge.
The recommendation followed months of negotiation, Chvin said, and staff considered shorter contract terms but concluded that an immediate refusal to sign would risk disrupting services. He said Best Care initially sought a six‑month agreement but accepted an 18‑month term partly to create predictability while county and regional partners plan next steps.
Commissioners and staff pressed for timing and review: legal staff and the manager’s office advised that placing the contract on next week’s consent agenda (June 17) would allow packet review, but Chvin said earlier signature would reduce delays in payments. County staff noted there is a six‑month notice clause for withdrawal and that any termination would require lining up an alternate contract so services aren’t abandoned.
Chvin asked the board to approve the contract ‘‘with reservations’’ while county leaders pursue central Oregon planning about options for CHP management and monitor PacificSource performance. No formal vote to sign the contract was recorded on the June 10 work session; staff recommended placing the item on the consent agenda or, if timing is tight, arranging signatures via the manager’s office after review.
The presentation signaled county concern about continuity of care and potential legal escalation if payment and claims issues continue; Chvin asked the board to authorize staff to pursue both local coordination and legal consultation as needed. The board declined to take immediate action on a contract signature at the meeting and indicated it would consider the item on the June 17 agenda or authorize expedited signature after packet review.

