36-3412. Contracts; regional behavioral health authorities

A. The director shall prepare and issue a request for proposals for behavioral health services consistent with sections 36-2906 and 36-2906.01.

B. Consistent with section 36-2903, subsection M, the administration's contracts with regional behavioral health authorities shall include terms as necessary in the judgment of the director:

1. To ensure adequate performance and compliance with all applicable federal laws by the regional behavioral health authorities.

2. For the maintenance of deposits, performance bonds, financial reserves or other financial security.

3. For the withholding or forfeiture of payments to be made to a regional behavioral health authority by the administration due to the authority's failure to comply with a provision of the authority's contract with the administration or with adopted rules.

4. Authorizing the administration to operate a regional behavioral health authority directly.

C. If there is an insufficient number of qualified bids for prepaid capitated behavioral health services within a geographic service area described in a request for proposals, the director may employ any of the options authorized by section 36-2904, subsection A.

D. During any period in which services are needed and no contract exists, the director may employ any of the options authorized by section 36-2904, subsection B.

E. If there is an insufficient number of, or an inadequate member capacity in, contracts awarded to contractors, the director, in order to deliver covered services to members enrolled or expected to be enrolled in the system within a county, may negotiate and award without a bid a contract pursuant to section 36-2904, subsection J.

F. To the extent that services are furnished pursuant to this chapter, and unless otherwise required by this chapter, a regional behavioral health authority is not subject to title 20.

G. Regional behavioral health authorities are subject to section 36-2905.