In this week’s edition, the state’s new behavioral health RFP opens the door to a more accountable, transparent, and person-centered system. We break down what the RFP means, how opposition is responding, and the rules of engagement during the quiet period And we look at how spending smarter, reducing redundancy, and removing barriers can deliver real change for all Michiganders. Pull Up Your Chair & Let’s Start the Conversation.
RFP ISSUED
State Opens Bidding for Behavioral Health Overhaul, Prioritizes Public Oversight and Lived Experience
The Michigan Department of Health and Human Services (MDHHS) has officially launched a competitive bidding process to select new Prepaid Inpatient Health Plans (PIHPs) responsible for delivering behavioral health services to Medicaid beneficiaries across the state.
This move marks a major step in MDHHS’s effort to improve access, accountability, and person-centered care for the nearly 300,000 Michiganders who rely on specialty behavioral health services. These services cover individuals with serious mental illness, emotional disturbance, substance use disorders, and intellectual and developmental disabilities.
“This is about building a behavioral health system that works better for the people it serves,” said MDHHS Director Elizabeth Hertel. “By opening the PIHP contracts to a competitive process, we aim to create a more accessible, responsive, and transparent system of care.”
PIHPs serve as regional managers of Medicaid-funded behavioral health care, overseeing the delivery of services in partnership with Community Mental Health Service Providers (CMHSPs). Under the new request for proposals (RFP), MDHHS is reinforcing its commitment to public accountability and stakeholder input.
A meeting with potential bidders will be today, Monday August 11. Written questions are due August 20, with responses posted by August 29. Final proposals must be submitted by September 29. More information and registration details can be found at the DTMB website under Vendor Services. PIHP RFP NR.pdf
Groups Wanting The Status Quo, Maintains Vigilance
Groups Wanting the Status Quo are Focused on Litigation, PR, & Alternative Bids
Michigan is no stranger to efforts to improve our behavioral health system. Moving from 55 CMHs to 46 CMHs as MCOs to 18 PIHPs to 10 PIHPs. Yet in an email to its members, the Community Mental Health Association of Michigan (CMHAM) made clear, it will continue to challenge the MDHHS efforts to create a more efficient and accountable system. In December, a few PIPHPs sued the MDHHS. Public Mental Health Plans Sue State Over Broken Negotiations. (Source CMHAM, December 18, 2024)
In an August 6, 2025 email to CMHAM members, the association outlined a three-pronged response strategy now that the RFP has been posted. The strategy includes:
Ongoing Opposition: CMHAM continues to push for the RFP’s withdrawal, citing political and media efforts already underway. The association is urging its members and allies to maintain strong public resistance to the state’s procurement process.
Potential Legal Action: CMHAM is meeting with its legal team to explore legal avenues following the RFP’s release. Member organizations have been encouraged to consult their own counsel regarding options to challenge the procurement.
Alternative Public System Models: While challenging the RFP, CMHAM also appears to be preparing contingency plans, indicating it will support bid development that reinforces the “strength of the public system.”
This dual-track strategy, opposing the RFP while also preparing to participate, raises important questions on how existing PIHPs and CMHSPs may seek to preserve legacy structures, even as providers and advocates push for a system that is more efficient, accountable, and centered on outcomes for people.
CMHAM email to members
DWIHN
DWIHN Leadership Confirms Intent to Apply for New Behavioral Health Contract
During the August 7 provider network meeting, DWIHN’s Executive Leadership Team (ELT) confirmed that the organization intends to apply under the Michigan Department of Health and Human Services (MDHHS) Request for Proposals (RFP) to serve as a Prepaid Inpatient Health Plan (PIHP). While they acknowledged that current PIHPs are ineligible unless structurally separated from direct providers, ELT stated that DWIHN is still evaluating whether to formally spin off its Community Mental Health Services Program (CMHSP) or maintain internal firewalls to comply.
The ELT clarified that the goal is to remain in the system as a public, nonprofit, community-based entity with a proven track record, and they are consulting with legal counsel and state regulators to determine the most appropriate structure. Leadership also addressed specific criteria in the RFP, including governance, payment structure, and eligibility, and expressed a commitment to transparency throughout the process.
In response to a direct question from a provider about whether DWIHN was becoming a competitor, the ELT stated that service delivery is only occurring in cases where no other providers are available—such as when intake is delayed, or post-hospital care is not in place. “We’re not trying to replace the network,” they said. “We’re stepping in to ensure members don’t fall through the cracks.” The concern over DWIHN’s dual role sparked discussion on maintaining trust and accountability between the network and the plan.
Additional provider questions focused on staffing shortages, credentialing barriers, and workforce pipeline issues. The ELT acknowledged the challenges and invited continued collaboration to address system-wide gaps. They also noted upcoming community engagement opportunities related to the RFP and encouraged providers to submit feedback and questions to help shape a stronger future system. Other PIHPs have hosted town hall meetings focused on unfounded threats of privatizing the system of care, while the OCHN has their townhall meeting on August 18.
OCHN Facebook amd shared on MCCMH Facebook
Macomb County Board of Commissioners Adopts Resolution Opposing MDHHS Plan to Implement Competitive Procurement Process for PIHPs, Macomb County
The Rules of Engagement - Post RFP
Understanding the Quiet Period: What Non-Bidding Providers Can and Can’t Discuss with MDHHS During the PIHP RFP Process
With the release of the PIHP RFP, the Michigan Department of Health and Human Services (MDHHS) has entered a quiet period under state procurement law—designed to ensure the integrity of the bidding process and prevent real or perceived influence on procurement decisions.
Under MCL 18.1261, MCL 18.1263, and the DTMB Procurement Manual (Section 4.4), the state is required to maintain a competitive, transparent process when awarding contracts. Once a Request for Proposals (RFP) is issued, MDHHS officials directly involved in the procurement must refrain from discussing the RFP’s content or outcome with interested bidders or parties that may influence the award.
But if you’re a provider who is not applying for the RFP—and not part of any consortium or entity that plans to submit a proposal—then you are not considered a vendor under these rules. That means the door isn’t entirely closed.
What You Still Should Avoid Discussing with MDHHS Leadership:
Even as a non-bidder, providers should avoid:
Attempts to influence who wins the RFP
Requests to alter, delay, or cancel the RFP
Conversations with MDHHS procurement staff or leadership that could be perceived as lobbying the process
Allegations directed at specific bidders unless routed through formal oversight channels (e.g., the Office of Inspector General)
What You Can Discuss or Submit:
As non-bidders, providers can still:
Meet with MDHHS staff not involved in the RFP evaluation (e.g., clinical, compliance, or service delivery leads)
Raise concerns about current PIHP or CMHSP behavior that may impact service continuity or the provider network
Submit memos, letters, or incident reports documenting potential conflicts of interest or misuse of authority
Communicate with external oversight bodies, such as:
MDHHS Office of Inspector General (OIG)
Attorney General’s Health Care Fraud Division
Legislative offices or ombudsmen
Request clarification on when and how the quiet period lifts so meetings with Director Hertel or others can be scheduled appropriately
The quiet period doesn’t prohibit providers from advocating for service integrity, workforce stability, or community impact. It just requires you to communicate through the right doors, at the right time, and with clear boundaries. Raising systemic concerns is not the same as influencing a contract. Providers can and should speak up when existing service relationships are being undermined in the name of procurement positioning.
Lansing Updates
New Bills Advance Supported Decision-Making for Michiganders with Disabilities. Two bipartisan bills heard in the Michigan House last week, HB 4676 and HB 4677, aim to shift the state’s approach to guardianship by giving individuals with developmental disabilities greater autonomy through supported decision-making. Sponsored by Rep. Sharon MacDonell (D-Troy) and Rep. Douglas Wozniak (R-Shelby Township), the legislation would require courts to assume capacity and prioritize personal choice, allowing family, friends, or professionals to assist, rather than override, decision-making. Advocates say the bills respond to widespread concerns about overreach and exploitation in traditional guardianships, where one-size-fits-all arrangements often ignore individual needs. The legislation would also streamline the process for changing supporters and ensure that those with disabilities are treated not as a monolith, but as individuals. A transcript of the committee meeting can be found here. Source MIRS.
Governor Proclaims August As Community Health Worker Appreciation Month. Gov. Gretchen WHITMER today issued a proclamation declaring the month of August as Community Health Worker Appreciation Month. Republican cuts to health care will impact health care workers in Michigan and Whitmer said she remains committed to supporting community health care workers, ensuring they can continue to get their jobs done. The full proclamation can be viewed here. Source MIRS.
Politics
Early Maneuvering Begins in Grand Rapids Senate Races Ahead of 2026
Two Grand Rapids-area Senate districts are already drawing attention ahead of 2026, with Senate Majority Leader Winnie Brinks (D-Grand Rapids) term-limited in District 29 and Sen. Mark Huizenga (R-Walker) preparing to defend a competitive District 30 seat. In District 29, a three-way Democratic primary is taking shape between Rep. Phil Skaggs, Rep. Kristian Grant, and former Kent County Commissioner Ivan Diaz, each representing distinct political bases and campaign styles. Endorsements from Brinks or Grand Rapids Mayor David LaGrand could tilt the scales. In District 30, Huizenga, who narrowly won in 2022, enters the cycle with a strong cash advantage but may face a challenge from Rep. Carol Glanville, who flipped his former House seat and is seen as a viable Democratic contender—though she has yet to declare. With shifting political winds in Kent County, both races are seen as bellwethers for Michigan’s legislative future. Source MIRS.
And in other Senate Races … As Michigan’s 2026 elections approach, the political shuffle in Senate Districts 31 and 32 is already underway. In SD-31, Michael Markey Jr. has emerged as an early GOP contender with deep pockets and high-profile endorsements, despite past ballot access issues and narrow congressional losses. Other potential Republican candidates include Rep. Nancy DeBoer, Ottawa County Commissioner Jordan Jorritsma, Rep. Greg VanWoerkom, and Ottawa Impact leader Joe Moss, each bringing varying degrees of name ID, experience, and political alignment. In neighboring SD-32, Democratic newcomer Rebecca Amidon is stepping up to run for the open seat being vacated by Sen. Jon Bumstead, while Republicans are eyeing longtime Mason County Sheriff Kim Cole, a well-regarded local figure with deep community roots. Both races will test the region’s ideological direction as West Michigan balances tradition, emerging political currents, and generational change.
What about the U.S. Senate
Rep. Joe Tate drops his bid for the US Senate.
Other MDHHS Updates & Funding Opportunities
Application period for Behavioral Health Internship Stipend Program opens August 18
As part of its continuing efforts to increase access to behavioral health services for Michigan residents, the Michigan Department of Health and Human Services (MDHHS) is offering a stipend program to student interns enrolled in accredited behavioral health bachelor’s or master’s degree programs. The Behavioral Health Internship Stipend Program provides up to $15,000 to students who have obtained a qualifying unpaid internship to cover costs such as tuition, fees, books and living expenses. Students pursuing degrees resulting in any of the following behavioral health professions are eligible: marriage or family therapist, behavior analyst, social worker, professional counselor or psychologist. MDHHS has allocated $1.25 million for the program, which could benefit about 73 interns depending on how much funding the student qualifies for during the program. Applicants must be enrolled in an accredited program within the United States and have an approved internship in Michigan that meets the stipend program requirements. Students will take part in program surveys and engage in program evaluation activities. A commitment to seeking employment in Michigan’s behavioral health sector after graduation is also encouraged. The application period opens Monday, Aug. 18 and applicants must complete an online form by Sunday, Aug. 31, and submit the necessary documentation. Applicants will receive an email notification of their acceptance status within six weeks of the application deadline.For more and to apply, visit the Behavioral Health Internship Stipend Program website. See News Release, 2025 Behavioral Health Internship Stipend 2 NR.pdf
ICYMI
Taking a holistic approach to integrated care, Crain’s Content Studio
Macomb County Community Mental Health Seeks Board Applicants, Due Tuesday August 12
If you are a nonprofit behavioral health provider in Michigan, and not a member of the MI Care Council, MI Behavioral Health & Wellness Collaborative, or the Michigan Association of Substance Addiction Providers, or just interested in collaboration, please contact [email protected], for more information on the value of membership. If you know of someone who might find this content, please share this link to the newsletter.
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.
