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Diversion Contract Called into Question

A multi-million contract awarded to Reliant Behavioral Health by the Department of Human Services is being called into question after the agency did not seek competitive bids.
January 29, 2016

A multi-million contract awarded to Reliant Behavioral Health by the Department of Human Services is being called into question after the agency did not seek competitive bids.

That contract should be rescinded, according to James Conway, an addictions and drug abuse professional who works for a competing firm. He had been assured by agency officials that a bidding process would take place.

Since 2010. Reliant has managed a monitoring program for health professional licensees who have substance abuse and mental health disorders. Four regulatory boards participate: the Board of Dentistry, Board of Nursing, Board of Pharmacy and the Oregon Medical Board.

Its new two-year contract was signed shortly after Christopher Hamilton, who oversaw the diversion program for the Oregon Health Authority, left to become program director of monitoring programs at Reliant.

That represents a conflict of interest, said Conway, who shared his opinions with Clyde Saiki, interim director of DHS. “Government employees should not be able to leave and immediately take a contract they managed. That he manages multiple accounts is even more troubling. The health professional services program, with 70,000+ potential participants, should have a full time manager. That could be part of the reason Reliant Behavioral Health fails to deliver adequate outreach and advocacy within the state.”

Not true, according to Saiki, who said Hamilton left state employment before the Health Authority decided to award the contract to Reliant.

Hamilton also defended himself, saying he had no administrative authority or influence over a contract that had been in place since July 2010.

“It is not clear why Mr. Conway has made these allegations. Reliant Behavioral Health and I have been completely transparent to the fact that I previously had worked for the state, and this is the first I have heard of anyone being con-cerned about my direction of this program,” he said. “Reliant Behavioral Health followed all contracting and bidding processes as outlaid and required by the Oregon Health Authority From our perspective, there are no conflicts of inter-est that exist.”

DHS has no intention of rescinding the contract, said spokeswoman Patricia Feeny, who insisted her agency had the authority to award the contract to Reliant without a bidding process under rules established by the Oregon Health Authority. .

Meanwhile, Dr. Vern Williams joined Conway in sharing his concerns about the contract. “For years, Oregon had a highly regarding program with an excellent reputation,” he told Saiki. “Today . . .. Oregon is poorly regarded nationally and in the state.”

He mentioned that 50 percent of the nurses who participated in drug diversion failed to complete the program. “All too often they drop out and surrender their license. Others would prefer to face board enforcement rather than continue.”

Hamilton disputed that claim, saying Oregon’s health professional services program has made remarkable outcomes. In a national study, 64 percent of physicians completed such a program compared to 67 percent in Oregon.

Legislation on the books

Next Monday, the House Committee on Health Care will consider legislation that would allow the four licensure boards -- the Oregon Board of Dentistry, Oregon Medical Board, Oregon State Board of Nursing and the State Board of Pharmacy – to establish an impaired health professional program and remove that authority from state control.

Those licensure boards are responsible for funding the program and expect to save $300,000 per biennium by bringing it in house. No opposition has been raised.

Diane can be reached at [email protected].

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