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MEDCO BEHAVIORAL CARE v. STATE DHS

No. 94-1875.

553 N.W.2d 556 (1996)

MEDCO BEHAVIORAL CARE CORPORATION OF IOWA, Appellee, v. STATE of Iowa DEPARTMENT OF HUMAN SERVICES, Appellee, Value Behavioral Health, Inc., Intervenor-Appellant. VALUE BEHAVIORAL HEALTH, INC., Appellant, v. STATE of Iowa DEPARTMENT OF HUMAN SERVICES, Appellee, Medco Behavioral Care Corporation of Iowa, Intervenor.

Supreme Court of Iowa.

July 24, 1996.

Attorney(s) appearing for the Case

W. Don Brittin, Jr. and John F. Lorentzen of Nyemaster, Goode, McLaughlin, Voigts, West, Hansell & O'Brien, P.C., Des Moines, for appellant Value Behavioral Health, Inc.

Brent R. Appel of Dickinson, Mackaman, Tyler & Hagen, P.C., Des Moines, and James W. Carney of Carney, Williams, Blackburn, Grask & Appleby, Des Moines, for appellee Medco Behavioral Care Corporation of Iowa.

Thomas J. Miller, Attorney General, and Richard E. Ramsay, Assistant Attorney General, for appellee State of Iowa Department of Human Services.

Considered by HARRIS, P.J., and LARSON, LAVORATO, NEUMAN, and TERNUS, JJ.

HARRIS, Justice.

I. Overview.

The Iowa department of human services (DHS) awarded a valuable contract ($200 million) to provide managed mental health care to Iowa's Medicaid program to Value Behavioral Health, Inc. (Value). The award was challenged through the administrative process and on judicial review by Medco Behavioral Care Corporation of Iowa (Medco). On judicial review, as permitted by Iowa Code section 17A.19(7) (1991), the district court...

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