Medco Behavioral Care Corp. of Iowa v. State Department of Human Services
Supreme Court of Iowa
1Opinion of the Court
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 (Med-co). On judicial review, as permitted by Iowa Code section 17A19(7) (1991), the district court heard additional evidence to expand and explain the record.
The additional record revealed matters the court considered an organizational conflict of…
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