Colorado Code § 27-50-402

Behavioral health administrative services organizations - application - designation - denial - revocation
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(1) At least once every five years, the commissioner shall
solicit applications through a competitive bid process pursuant to the "Procurement Code",
articles 101 to 112 of title 24, for entities to apply to be a behavioral health administrative
services organization. Any qualified public or private corporation; for-profit or not-for-profit
organization; or public or private agency, organization, or institution may apply in the form and
manner determined by the BHA's rules. The BHA is authorized to award contracts to more than
one applicant. The BHA shall use competitive bidding procedures to encourage competition and
improve the quality of services.
(2) The commissioner shall select a behavioral health administrative services
organization based on factors established by BHA rules and the "Procurement Code", articles
101 to 112 of title 24. The BHA shall require an applicant to furnish letters of support from
stakeholders in the region the applicant is applying to contract for, including, but not limited to,
county commissioners and advocacy or community-based organizations. The letters of support
must demonstrate the applicant's ability to serve the community. The factors for selection must
include, but are not limited to, the following:
(a) The applicant's experience working with publicly funded clients, including expertise
in treating priority populations determined by the BHA;
(b) The applicant's experience working with and engaging relevant stakeholders in the
service area, including behavioral health providers; state and local agencies; and the local
community, including advocacy organizations and clients of behavioral health services;
(c) The extent to which real or perceived conflicts of interest between the applicant and
behavioral health facilities or behavioral health providers are mitigated; and
(d) The extent to which the applicant's board complies with conflict of interest policies,
including to the following:
(I) The board shall not have more than fifty percent of contracted providers as board
members;
(II) Providers who have ownership or board membership in a behavioral health
administrative services organization shall not have control or decision-making authority in the
establishment of provider networks; and
(III) An employee of a contracted provider of a behavioral health administrative services
organization shall not also be an employee of the behavioral health administrative services
organization unless the employee is the clinical officer or utilization management director of the
behavioral health administrative services organization. If the individual is also an employee of a
provider that has board membership or ownership in the behavioral health administrative
services organization, the behavioral health services organization shall develop policies
approved by the commissioner to mitigate any conflict of interest the employee may have.
(e) The extent to which the applicant's board membership reflects the diversity and
interests of relevant stakeholders, including, but not limited to, representation by individuals
with lived behavioral health experience and family of individuals with lived behavioral health
experience.

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