Sunday, April 24, 2011

Anonymous Research Into the MHMR-TC Relationship With BRAVO Health

On April 20 someone calling him or herself Anonymous made a very detailed comment which I intended to turn into its own blog post, but forgot about it til now.

Below is what Anonymous found out about BRAVO Health....

It has been alleged that MHMR has entered into a relationship with a for-profit company called BRAVO HEALTH in order to convert the Paradise Center and its' client base into a stream of revenue. If true, offer the following research for your consideration:

    (From Bloomberg BusinessWeek)

    COMPANY OVERVIEW

    "Bravo Health, Inc. provides managed care services. It offers Medicare advantage options to allow members to choose the right plan for them; and special needs plans for those who are receiving institutional care, who have chronic health conditions, or who are eligible for both Medicare and Medicaid benefits. The company also provides private fee-for-service plans, which provide members the freedom to determine from whom they receive their health care; and part D prescription plans for those who only need coverage for their medications. It offers its plans to members in Delaware, Maryland, Pennsylvania, Texas, Washington, D.C., California, Florida, Illinois, Michigan, New Jersey, New York, Ohio, and West Virginia. Bravo Health, Inc. was formerly known as Elder Health, Inc. The company was founded in 1996 and is based in Baltimore, Maryland. As of November 30, 2010, Bravo Health Inc. operates as a subsidiary of HealthSpring Inc."

    (From the Bravohealth.com/news page)
    (May 18, 2010)

    Bravo Health Receives Notice of Contract Award for STAR+PLUS Program in Texas

    "A spokesperson from Mental Health Mental Retardation (MHMR) of Tarrant County said, "We congratulate Bravo Health on their selection as a provider of STAR+PLUS services in the Tarrant Service Delivery Area. Our discussions with Bravo Health have demonstrated to us their keen understanding of the full range of health care needs of Medicaid recipients..."
    ----------

    The CEO

    "The past few years have been exciting for us, as we have experienced continued growth and achieved milestones relating to the way we serve our members," said Jeff Folick, chairman and chief executive officer of Bravo Health."
    ---------

    (Found elsewhere online)

    BRAVO HEALTH ACQUIRED BY HEALTH SPRING for $545 MILLION (FOXBusiness.com Published August 27, 2010)

    “For the first six months of 2010, Bravo Health generated premium revenue of approximately $832.8 million”

    Wall Street Journal reports: “Bravo Health Inc. did something in 2009 that most venture-backed companies can only dream about: It had revenue of more than $1 billion. Yes, that’s right, billion”

    Mybravohealth.com/about states "Bravo Health is one of the nation’s fastest-growing Medicare Advantage and Part D Prescription Drug coverage providers." and "Bravo Health is 100% committed to Medicare Advantage." (One can only speculate what profits are to be had by supplying expensive drugs to a large population of clients).

    CEO COMPENSATION

    According to documents filed with the SEC on 12-2-2010, part of the Bravo/ Health Springs merger included a seat on the board of directors for Folick which includes “a $50,000 annual cash retainer for his service” plus $105,000 in stock in 2011 (to increase 5% per year thereafter). One assumes he’ll receive a handsome salary as CEO of BRAVO but that pales in comparison to his payday for selling out to Health Springs for which he received….

    >>>$31.7 million in cash<<<

    Jeffrey Folick is a long time 'high flier' in the managed health industry. As Executive Vice President, PacifiCare Health Systems, Inc. he was listed among “The 25 Highest Paid HMO Executives 1996 Annual Compensation.”

20 comments:

Austin Veteran said...

One could reasonably conclude that the source of these interesting and intriguing information is not a big fan of BRAVO Health, especially not its highflying CEO.

It could be someone working for a competitor. An unhappy insider of the corporation. Or possibly an insider of MHMR-TC or the state agency overseeing Medicaid Star+PLUS. Whichever the source may be, the message seems to be fairly clear: BRAVO/Health Springs and its CEO are profit-driven and maximizer of personal gain. There's really not much wrong with that for a private business entity and its leaders.

The question that follows is: Are MHMR-TC and its CEO driven by the same motives as their business partner?

It's fairly common that executives in the government and not-for-profit sectors crave the power and financial gains that accompany their counterparts in the private for-profit sector. What they forget is that if that's their main motivation then they should move over to the more competitive for-profit corporate sector.

Deep down the great majority of these bureaucrats and leaders of nonprofits know that they could not compete in the dog eat dog world of profit-driven businesses. Unfortunately, some like the CEOs of the El Paso and Tarrant MHMR centers appear to have the false idea that they are not different from CEOs of business corporations who use their positions of power as weapons and expect significant personal and financial benefits from cash strapped taxpayer funded agencies.

What a rude awaking for these two wannabes.

Wayne Y. said...

The information provider also left a tantalizing snippet about the relationship between BRAVO Health'Medicaid HMO and the public health agency MHMR-TC.

I sure would like to aknow what else the MHMR spokesperson said
about BRAVO other than expressing their confidence in the
HMO. Like when, if ever, did the
agency issue a public statement
declareing and detailing their business partnership with just one of the only TWO state approved HMOs in the Tarrant service area.

Or maybe their business partnership wasn't supposed to be public knowledge at all.

What else is MHMR-TC not disclosing to the taxpayers? Or preventing the voters from knowing?

And did MHMR-TC do a similar
thorough review of the other
Medicaid HMO Amerigroup? If so, did their spokesperson issue a similar statement of endorsement??

Or why not?

If I was Amerigroup, I sure would be mighty ticked of about being excluded and discriminated
against.

So many relavent questions but no one available to answer. That's how places ruled by royalty and dictatorship operate. Is this the case for people of Tarrant county??

Anonymous said...

Hey you know how the Texas Legislature still practices the outdated biennial assembly? Well, this practice 9f convening officially ONCE every two years also means that budgets and policies are usually designed in two-year pieces. In our case, Jimmy boy and MHMR-TC were extremely desperate to remove Teresa Davis in February because if she were allowed to continue to stand for the truth and defend the paradise center organization from legal and financial hot waters (hint:I.R.S. since it's a 501/c/3 enjoying tax exemption benefits) WOULD MEAN THAT MHMR 'S PRIVATE BUSINESS PARTNER BRAVO HEALTH COULD POSSIBLY BE SUSPENDED LONGER, POSSIBLY FOR THE WHOLE TWO-YEAR CYCLE as an approved Medicaid Star+Plus HMO for the six counties-wide Tarrant Service area. That translates to tens to hundreds of MILLION$ in lost business and anticipated profit, which would affect the market
rating of parent corporation Health Springs.

You think a major corporation would take such a major loss, with negative implications for its other enterprises in other markets and in the future, and not take legal action to recoup their losses? Jim McDermott and all his local political cronies don't mean Jack squat for this major national corporation.

So even the hundreds of thousands of dollars(or more) that MHMR-TC might have to pay to Ms. Davis and the mental health consumers and their nonprofit organization pales in comparison to what BRAVO would get for their losses.

Jim McDermott and MHMR-TC finally faced a serious consequence for their arrogance, dishonesty, and frankly lack of competence.

BTW, Ms. Davis did the smart thing by not walking into that obvious trap and ambush. Because when the CEO, other top executives, AND the corporate legal counsel are waiting for you, they have a definite plan to get rid of you that very day, one way or another.

T.ree said...

Maybe anonymous researcher/s can find out the real reason why BRAVO Health was placed on a five month suspension ??

Did it have anything to with this scandal, specifically the principled stance by Ms. Davis to defend the truth and to protect the vulnerable people and their nonprofit organization from the McDermott gang?

Anonymous said...

Last time MHMR-TC got involved with a profit-driven corporation and Medicaid profiteering, the Texas Attorney General filed suit for fraudulent Billings...under MHMR supervision and approval. That 2005 case also involved a female employee who reported the wrongdoing '. Of course her employer The Citadel fired her. But she got a good chunk of the 2.5. million that the AG got The Citadel to return.

This paradise scandal is really really bad for MHMR-TC and Jim McDermott.

Anonymous said...

This whole mess is obviously about money. The Paradise Center was apparently a model program and Ms. Davis a model administrator --UNTIL-- the stater budget crunch (yeah Rick Perry.. where's your surplus NOW?). One can understand the financial mess states are in right now..and MHMR-TC is under great pressure to make cuts.

But there's a right way, and wrong way to go about implementing austerity measures. MHMR obviously did it the wrong way. And they did so (I believe) because they believe they're in the business of dealing with "clients" and "patients"... not "people, individuals, human beings." There is a detached academic mentality that dominates the halls of power at MHMR. FEW, if any, of the people running that place have any direct, personal experience (such as a family member or close friend) who suffers from mental illness. What you typiclly have are people at the top with impressive sounding degrees but precious little empathy and even less direct experience. Mostly they spend endless amounts of time in meetings and going on trips instead of getting their hands dirty through actual contact with, and service to, people with mental challenges. Just sayin'

Anonymous said...

Earlier this month the TarrantCares.com web portal was launched with great fanfare (and expense). Click on the "Sponsors" link under the banner on the home page. There you'll see all the local movers and shakers incuding MHMR-Tarrant County, The Mental Health Connection and BRAVO Health (a Health Springs Company).

As others have speculated, the client pool at the Paradise Center --by itself-- wouldn't likely warrant the involvement of an entity like BRAVO Health. However, it likely serves as a 'foot-in-the-door" in their expansion into the massive Texas marketplace.

black & proud said...

Well, Mr.Durango and smart readers, it looks more and more like you all are right about Jim McDermott are "monetizing" the people with mental illness. My daughter, who has been going to the drop in place since paradise center was homeless, just told me that she will not be allowed to go there after this month since she's not using MHMR-TC for her psychiatric services. Basically, if you don't have BRAVO as your Medicaid HMO then you're not worth any money so you're not allowed to use their shiny new furniture and all the new stuff these bottom feeders have been bragging about. I'm so glad you have this blog where we can find some truth, the main one being that Paradise Center and Teresa are available for people like like my daughter. She's been trying to avoid that drop in place because she's sick of the negative atmosphere and the shifting stories about what happened to Teresa and about what they're really doing with the drop in place. Money and power is what's behind this whole ugly scandal.

Anonymous said...

Actually MHMR-TC doesn't have that much of a budget problem. The chief of Mental Health reported just a few months ago that her department had around $1.5 million in excess revenue. Part of the explanation for that could be because many people have left MHMR and going to JPS Health for much better psychiatric treatment since their doctors are pretty top quality to serve in a teaching hospital system. To the contrary, MHMR-TC cannot seem to keep good psychiatrists and c!can't attract good ones either. The ones they still have are overworked since the top brass keep cramming more neighborhood clinics into a few big clinics which makes the patients feel even more stigmatized since most 0eople realize that people who go to the MHMR clinics have serious mental issues.

Of course, many psychiatrists and other professionals won't put up the oppressive and incompetent culture of the MHMR-TC administration. The agency spends over $180k last year in buying ads and paying to try and recruit doctors and therapists. Many of us professionals care more about the way we're treated and how the patients are treated than how much we get paid. As people can see, that's a foreign concept to Jim McDermott and his gals.

JPS administrator said...

For an agency that's always whining about lack of taxpayer funding to provide basic and essential mental health services, MHMR-TC sure does dole out a lot of money. To NAMI-TC, MHA, Mental Health Connection, DBSA, and the newly launched web information site, which is redundant since MHA is supposed to be the official information and referral "clearinghouse" for mental health matters.

And MHMR-TC's mouthpieces dared try in earlier blog comments claim that their improper and hostile takeover of the consumer-run Paradise Center was due to b7dgetary constraints? Of course, after that goofy excuse was shot down they went on and tried other silly excuses. The constant was the mean spirited personal attacks on the Resistance and individual supporters from an innocent child to gravely ill individuals.

These are major signs of a sickly organization. The sickness hurts 1,400 +employees and thousands of clients and their families and friends. Of course, other parts of the local healthcare system and the community will bear the burden from the fallout from foolish decisions of this impaired taxpayer funded agency.

Retired executive said...

It looks like BRAVO Health has done business almost completely with the federally controlled Medicare program. So I would agree with the conclusion by the first anonymous commenter on 4/28 that this is major "foot in the door" for the corporation as far as state-controlled Medicaid program. Medicaid can be and often is much more profitable than the more stringent retirement (with some for disabled workers on SSDI) medical benefit Medicare. So I see why this market is so valuable to BRAVO and its new parent company Health Spring. No wonder BRAVO is plastering ads all over and handing out donations to groups like NAMI-TC and MHA .

I still can't get my hand on information to explain why BRAVO was placed on a five month suspension to begin doing business by the state's Dept of HHS back in December. The information provided on this blog would make it reasonable to think that THE only reason for that rather surprising--and pretty harsh-- suspension was due to Theresa Davis' refusal to collude with the McDermott gang. Because thinking about it what McDermott and his gang did to Ms. Davis and Paradise Center were also rather surprising and extremely harsh. Aside from criminal prosecution, I can only think that something as serious and very consequential as such a financial matter would explain the disturbing decision and damaging actions on the part of the agency's highest level of leadership. Some with master level social worker licenses could be in some hot water with the State Board since they as professionals in that field should have known of the likely harm that such sudden and drastic changes would have on people recovering from very serious mental illness. But they thought that their victims would ever speak up and call them out like the Paradise group has. Give Ms. Davis a lot of credit for not only standing her ground but also for helping to give those folks the self confidence and cohesion as a group to fight and essentially win this David v. Goliath fight. That's very remarkable in itself there because it looked like the McDermott gang and cronies were throwing everything at them to make them lose heart and give up. Your blog shares a lot of credit because it helped expose wrongdoing and spread the truth against the MHMR-TC political machinery.

COWTOWNER said...

BRAVO Health's use of propaganda, local politics, and money in the form of "donations" to select groups in the community is like a smaller version of the Chesapeake campaign to subdue the community in 2007-2008. Remember the billboards, bus wraps, and 30-minute infomercials telling us to " thank Barnett shale for jobs, education " clean-burning natural gas, and "get behind the Shale"?? And Chesapeake was tight with the City of FW and its Strongman Mike Moncrief. Don't forget all the donations to neighborhood associations and churches that served the dual objectives of having these groups exert their influence to push property owners to sign gas
drilling leases with Chesapeake AND to "neutral-ize"
them when situation like the abuses and exploitation
of people on Carter Street were perpetrated. The neighborhood association did put up a brief but half-
hearted protest to help keep the huge gas pipeline off people's front yards. But when it came down to taking a firm stance and to fight that bullying by the private+public team of CHK and Moncrief, there was no advocacy by the neighborhood association on behalf of the few who dared to put up a resistance against that tyrannous saga. SOUND FAMILIAR? ??

guelma said...

It must have been an uncomfortable few months for Jimbo and MHMR since their Medicaid HMO partner was on suspension since the first of the year, which resulted in most of MHMR clients being enrolled with the other HMO, and their competition, Amerigroup Community Health.
Which means that special arrangements had to made for MHMR psychiatrists to contract as "providers " in the Amerigroup stable...until BRAVO Health -MHMR-TC could legally do Medicaid business.

Ironic that MHMR-TC 's clever plan to work with BRAVO to double team Amerigroup got turned around, where MHMR-TC was forced to be business partners with Amerigroup even before their partner BRAVO.

BRAVO must have many reasons to distrust and blame MHMR-TC for their losses. An industry analyst wrote last month that BRAVO will lose even more money since most people will not want to go through the hassles of switching HMOs after they've already gotten used to Amerigroup. Could this fact help explain the evasiveness of MHMR-TC leaders and their launching nasty but immature personal attacks on the Paradise leaders and their properties?? They were p.o.'d and desperate from realizing that they'd been outplayed at every turn by a weak consumer-run organization and their director Ms. Davis.

Anonymous said...

Don't Worry, Be Happy !! Jim McDermott, CEO is watching out for the Clients at new Community Center! He is watching and making sure with Bravo Health that clients get the best care and a elaborate Community Center !!! You're the greatest Jim !!

CatsPaw said...

Oh honey, I'm delirious with joy. I was concerned that Jimbo's Dimbo Bimbos might have developed consciences and I didn't think it was possible. I just won the bet with myself! ::: moving that dollar from one hand to the other :::

Anonymous said...

BRAVO Health suspension: It sounds to me like they were suspended for enrolling clients like mad without demonstrating any proof they were in a position to a ctually serve them effectively. Just another HMO "hog at the trough." What say ye?
------------------------

From DADS (12-29-2010)

"Tarrant Service Area Operations - Bravo Enrollment Suspension

In the Tarrant service area, HHSC has placed Bravo on temporary enrollment suspension. While Bravo’s enrollment is suspended, Tarrant service area members will be enrolled in Amerigroup. >>Once Bravo demonstrates operational readiness,<< HHSC will lift Bravo’s enrollment suspension, allowing members to enroll in their health plan, possibly as early as April 1, 2011.
http://www.dads.state.tx.us/providers/communications/2010/letters/IL2010-159.pdf

Anonymous said...

More on the BRAVO suspension:
--------------

"In the Tarrant Service Area, Bravo Health has been placed on temporary enrollment suspension >>due to concerns about the ability to accurately process acute and long term services and supports claims.<< This means that until the enrollment suspension is lifted members in the Tarrant Service Area will have only one health plan available. Bravo has developed an acceptable corrective action plan to comply with HHSC requirements relative to claims processing and HHSC expects that the Bravo enrollment suspension will be lifted no later than May 1, 2011. When the enrollment suspension is lifted all Tarrant Service Area members will be informed about the availability of a second health plan...."
http://www.tmhp.com/News_Items/2010/12-28-10%20STARPLUS%20Expansion.pdf

This is the 32 page BRAVO Health "Agent Agreement" document (not the short one on their website) which outlines all tactics and procedures their peddlers can use:
www.nimbroker.com/docs/BravoAgentAgreement.doc
-------------

Starting pay for Dallas area "recruiters" $52-55k (note Imprimis is an employment agency): http://jobview.monster.com/GetJob.aspx?JobID=98551343&from=indeed
Here's their 99 page "Provider Manual" http://www.bravohealth.com/docs/starplus/TX_11_0008_provider_manual_web.pdf
-----------

Here's the 84 page "8-K" filing with the SEC detailing the BRAVO/ HEALTHSPRING merger last year. http://idc.api.edgar-online.com/efx_dll/edgarpro.dll?FetchFilingConvPDF1?SessionID=HVLFHtTBIhtv7fS&ID=7589217

Here's the HEALTHSPRING stock chart (NYSE: HS):
http://finance.yahoo.com/q?s=HS Their First Quarter Revenue was up 84% over last year and "The Company maintains its estimate that total revenue will be at least $5.4 billion." They report "Membership in Texas increased to 79,923 vs 48,298 in March 2010 --an increase of 65.5%" http://finance.yahoo.com/news/HealthSpring-Inc-Reports-2011-bw-4242386998.html?x=0&.v=1 (Click "Headlines" under "News & Info" for more.
-----------
DRUG PURCHASES= $1 BILLION

"SXC Health Solutions Corp. ("SXC" or the "Company") (NASDAQ: SXCI) (TSX: SXC), a leading provider of technology and pharmacy benefit management ("PBM") services, announces that it has expanded the contractual relationship with HealthSpring to include the provision of services to HealthSpring's newly acquired Bravo Health, Inc. subsidiaries ("Bravo Health") effective January 1, 2012. Based in Baltimore, Maryland, Bravo Health is a wholly-owned subsidiary of HealthSpring Inc. and generates approximately $1.0 billion in annual drug spend"
http://finance.alphatrade.com/story/2011-05-04/PRN/201105041735PR_NEWS_USPR_____TO224.html
-----------

Amazing what a profitable, 'growth industry' mental illness is. Copanies 'socializing' the costs (i.e. passing themon to taxpayers) yet privatizing the profits. Cronyism at it's finest!

Mary M. said...

We heard the MHMR second in command and other execs were trying like crazy to lure Teresa Davis to attend another gangbanging meeting to break her will and force her to give in and go along with their secret scheme to exploit the popular and highly regarded Paradise community center. First BRAVO and MHMR would save a lot of time and costs by having Teresa and Paradise use their considerable influence to endorse and even sign up their hundreds of members with BRAVO HMO. Secondly, the free volunteer hours to operate the popular community center were worth hundreds of thousands of dollars.

But MHMR and McDermott did not want Paradise the nonprofit to know how much money would be made off of their reputation and hard work. That's just how mcdermott had always exploited Paradise and their dedicated leader Teresa...not lifting a finger when he knows about their needs, not even ever supported any of the group's fundraisers (vs. NAMI Walks last year).

Bottom line, BRAVO was told that Paradise, in all its forms, was completely under control of MHMR. Teresa and Paradise's firm stand for the truth and obedience to the law forced MHMR to retreat and suffer the costly suspension because without control over Teresa and Paradise 's members and smooth operation " BRAVO was not operationally ready".

The McDermott gang's scheme and its abuses are becoming much
clearer to me now.

Hulen Tower mole said...

Deputy CEO and Chief of Mental Health were putting a lot of pressure to have Teresa Davis attend another meeting JUST TWO DAYS AFTER CHRISTMAS. But when their plan failed, the agency had to tell BRAVO and the state that their part of the plan was not "ready". Thus the suspension issued a couple days after that defeat. AND WHY MCDERMOTT AND MHMRTC WERE BOUND AND DETERMINED TO RETALIATE AGAINST Teresa Davis. Petty wussycrats.

Jocelyn Kay said...

It looks like BRAVO Health has done business almost completely with the federally controlled Medicare program. So I would agree with the conclusion by the first anonymous commenter on 4/28 that this is major "foot in the door" for the corporation as far as state-controlled Medicaid program. Medicaid can be and often is much more profitable than the more stringent retirement (with some for disabled workers on SSDI) medical benefit Medicare. So I see why this market is so valuable to BRAVO and its new parent company Health Spring. No wonder BRAVO is plastering ads all over and handing out donations to groups like NAMI-TC and MHA . I still can't get my hand on information to explain why BRAVO was placed on a five month suspension to begin doing business by the state's Dept of HHS back in December. The information provided on this blog would make it reasonable to think that THE only reason for that rather surprising--and pretty harsh-- suspension was due to Theresa Davis' refusal to collude with the McDermott gang. Because thinking about it what McDermott and his gang did to Ms. Davis and Paradise Center were also rather surprising and extremely harsh. Aside from criminal prosecution, I can only think that something as serious and very consequential as such a financial matter would explain the disturbing decision and damaging actions on the part of the agency's highest level of leadership. Some with master level social worker licenses could be in some hot water with the State Board since they as professionals in that field should have known of the likely harm that such sudden and drastic changes would have on people recovering from very serious mental illness. But they thought that their victims would ever speak up and call them out like the Paradise group has. Give Ms. Davis a lot of credit for not only standing her ground but also for helping to give those folks the self confidence and cohesion as a group to fight and essentially win this David v. Goliath fight. That's very remarkable in itself there because it looked like the McDermott gang and cronies were throwing everything at them to make them lose heart and give up. Your blog shares a lot of credit because it helped expose wrongdoing and spread the truth against the MHMR-TC political machinery.