Last week, Arizona's Medicaid program informed VHS Phoenix Health Plan, the Arizona-based health plan of Nashville, Tenn.-based Vanguard Health Systems, the health plan would not be awarded a contract for the fiscal year starting this October.
Officials from the Arizona Health Care Cost Containment System did not disclose why it did not award another contract to PHP, which has roughly 186,200 members across nine Arizona counties, though its contract award system is based on a health plan's capitation, program guidelines, access of care and overall organization.
Vanguard plans to request that AHCCCS allow the health plan to receive a capped contract in two counties, Maricopa and Pima, where more than 62 percent of PHP's members reside. Vanguard can also file a protest with the state but must do so by April 1.
The news, announced Sunday, crippled Vanguard's stock going into yesterday. Since Friday, Vanguard's stock has slipped 6.44 percent to $15.55 per share. In FY 2012, PHP brought in nearly $636 million of Vanguard's total revenue.
"After serving the residents of Arizona for nearly 30 years under the AHCCCS program, we were both surprised and disappointed to receive this news," Vanguard President and CEO Charles Martin Jr. said in a news release. "The company will continue to pursue vigorously the opportunity to continue to serve the residents of Arizona under this program."
Officials from the Arizona Health Care Cost Containment System did not disclose why it did not award another contract to PHP, which has roughly 186,200 members across nine Arizona counties, though its contract award system is based on a health plan's capitation, program guidelines, access of care and overall organization.
Vanguard plans to request that AHCCCS allow the health plan to receive a capped contract in two counties, Maricopa and Pima, where more than 62 percent of PHP's members reside. Vanguard can also file a protest with the state but must do so by April 1.
The news, announced Sunday, crippled Vanguard's stock going into yesterday. Since Friday, Vanguard's stock has slipped 6.44 percent to $15.55 per share. In FY 2012, PHP brought in nearly $636 million of Vanguard's total revenue.
"After serving the residents of Arizona for nearly 30 years under the AHCCCS program, we were both surprised and disappointed to receive this news," Vanguard President and CEO Charles Martin Jr. said in a news release. "The company will continue to pursue vigorously the opportunity to continue to serve the residents of Arizona under this program."
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