In this special edition, we review a second order from the Court of Claims, denying the PIHPs request to stop the MDDHS from modernizing Michigan’s system of care and clears the path for the Department to move forward in separation the PIHPs from being both a funder and service provider.
Pull Up Your Chair & Let’s Start the Conversation.
The Redesign
Judge Denies Injunction in Behavioral Health Rebid Case, Leaving Earlier Ruling Intact
A Michigan Court of Claims judge has denied a motion for injunctive relief filed by plaintiffs seeking to halt the state’s behavioral health system redesign, effectively allowing the Michigan Department of Health and Human Services (MDHHS) to continue moving forward with its procurement process.
The October 14 order follows the court’s earlier decision granting summary disposition in favor of MDHHS, which dismissed the plaintiffs’ claims challenging the state’s plan to consolidate Michigan’s 10 regional Prepaid Inpatient Health Plans (PIHPs) into three. In that prior ruling, the court concluded that the department had the legal authority to restructure the system through a competitive bidding process.
By denying the request for an injunction, the court declined to pause or reverse the effects of its earlier decision. The ruling signals that the judge saw no sufficient likelihood of success on appeal or irreparable harm that would justify intervention.
Practically, this means the summary disposition order remains in full force and the case is over. MDHHS can continue evaluating proposals and preparing to award new regional contracts as outlined in the behavioral health rebid. Any further action in the case would now depend on whether the plaintiffs choose to pursue additional legal remedies, such as an appeal.
The denial of injunctive relief does not create new findings on the merits of the case but confirms that, at the trial court level, the matter is closed.
Read the additional court order in Court of Claims 25-000143-MB Region 10 PIHP v State of Michigan, Posted on October 14, 2025
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Disclaimer: This newsletter is intended for informational purposes only. Sources have been cited where applicable, and while some content may have been drafted with the assistance of AI, all material has been reviewed and edited by humans. We strive for accuracy, but if you believe something is incorrect or misrepresented, please reach out via direct message so we can review and correct the record if necessary.
