MDHHS releases results of behavioral health care survey and details related to PIHP procurement requirements

LANSING, Mich. - The Michigan Department of Health and Human Services today released results from its recent survey about behavioral health care as well as information about an upcoming competitive procurement process for the state’s Prepaid Inpatient Health Plan (PIHP) contracts.  

Michigan’s specialty behavioral health care system provides health care coverage to approximately 300,000 Michiganders, including adults with serious mental illness, children with serious emotional disturbance, individuals with substance use disorder and individuals with intellectual and developmental disabilities. MDHHS contracts with regional PIHPs to manage and deliver these Medicaid-covered services in communities across the state.  

PIHPs are responsible for making sure people receive the behavioral health care services and support they need and manage the network of behavioral health care providers including Community Mental Health Service Providers. They play a vital role in helping the department achieve its mission to improve the health, safety and prosperity of residents. 

Through a competitive procurement process, MDHHS will select PIHPs to contract with the state to provide managed care functions for the specialty behavioral health care services.  

“Michigan Medicaid beneficiaries deserve access to behavioral health care services when and where they need them,” said Elizabeth Hertel, MDHHS director. “The department is changing to a competitive procurement process for the state’s Prepaid Inpatient Health Plan contracts to help create a more accessible and person-centered system of care dedicated to ensuring Michigan residents a healthier future.” 

In February 2025, MDHHS solicited feedback from Medicaid beneficiaries and their families, advocacy groups, community-based organizations, federally recognized tribal governments, health care providers and other interested parties via an online survey. MDHHS received more than 2,600 responses representing a variety of individuals and partners across Michigan.  

Several themes emerged from survey feedback on topics including: 

• Provider availability - patients and providers shared dissatisfaction with breadth of care options, suggesting too few providers may be driving limited access to care. 

• Services - patients indicated need to advocate for their own care, referencing prior authorization requirements, burdensome paperwork and limited care settings were limiting their access. 

• Structure - respondents requested more PIHP accountability to address bias and limitations on managing complaints. 

• Input on potential program changes – all respondent types indicated increased provider availability and expanded care settings were of highest interest. 

The survey results will be used to inform four strategic pillars of the upcoming procurement, which include: 

• Provide high-quality, timely services. 

• Improve choice and consistency across regions. 

• Ensure accountability and transparency.  

• Simplify the system with reduced bureaucracy. 

MDHHS plans to issue a request for proposals (RFP) for PIHPs in summer 2025 with the goal of a service start date of Oct. 1, 2026.  

“As organizations representing providers across Michigan’s behavioral health continuum, we welcome MDHHS’s focus on timely care, consumer choice and system accountability. A well-designed system can move us beyond bureaucracy and into a future where access and outcomes – not process – drive the work,” said Daniel Cherrin, on behalf of the MI Care Council, MI Behavioral Health & Wellness Collaborative and the Michigan Association of Substance Addiction Providers. “This is Michigan’s moment to build a behavioral health system rooted in impact and transparency where care is consistent, conflicts are removed and every Michigander gets the support they need, no matter where they live.” 

As part of the department’s commitment to transparency and planning, anticipated contract requirements are being released today on the MDHHS website to provide guidance about eligibility and evaluation for the upcoming RFP. Sharing these criteria is intended to support prospective contractors in understanding the requirements for participation, as well as key priorities that will inform the department’s selection process. This early visibility is critical to ensuring preparation, alignment with program goals and strong, regionally coordinated proposals ahead of the formal RFP release.  

Additional information can be found at Michigan.gov/BehavioralHealth. There is also a recorded webinar with additional details.

Email MDHHS-BehavioralHealth@michigan.gov with procurement-related questions.

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