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FSSA able to terminate 9-year Medicaid provider contract without cause

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An Indiana Court of Appeals panel unanimously rejected a company’s argument that its state contract was wrongfully terminated. The company argued it has a property interest in continuing to be a Medicaid services provider.
 
Umbrella Family Waiver Services LLC signed a contract with the Indiana Family and Social Services Administration in 2003 to provide home- and community-based services under the Medicaid program. The agreement included provisions that allowed the state to end the contract for no reason with 60 days notice.

However, when FSSA notified Umbrella the contract was being terminated, the service provider fought back by requesting an administrative review. Umbrella was unable to convince the administrative law judge to rule in favor of its motion for summary judgment and the company was unsuccessful in its request for a review of the summary judgment decision.

Turning to the courts, Umbrella filed a Verified Petition for Judicial Review. After the Marion Superior Court denied the petition and affirmed FSSA’s termination of the contract, Umbrella filed an appeal with the Court of Appeals.

The denial of the verified petition was affirmed in Umbrella Family Waiver Services, LLC, v. Indiana Family and Social Services Administration, 49A02-1306-PL-525.
  
The COA did not find merit with Umbrella’s arguments that it has a property interest in continuing to serve as a Medicaid provider. FSSA has discretion in drafting contracts, the Court of Appeals pointed out, so Umbrella did not have a legitimate expectation that the state would provide a reason for the termination. Also, the appellate court found that Umbrella was not entitled to additional processes beyond the 60-day notice requirement.
 

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  1. Your article is a good intro the recent amendments to Fed.R.Civ.P. For a much longer - though not necessarily better -- summary, counsel might want to read THE CHIEF UMPIRE IS CHANGING THE STRIKE ZONE, which I co-authored and which was just published in the January issue of THE VERDICT (the monthly publication of the Indiana Trial Lawyers Association).

  2. Thank you, John Smith, for pointing out a needed correction. The article has been revised.

  3. The "National institute for Justice" is an agency for the Dept of Justice. That is not the law firm you are talking about in this article. The "institute for justice" is a public interest law firm. http://ij.org/ thanks for interesting article however

  4. I would like to try to find a lawyer as soon possible I've had my money stolen off of my bank card driver pressed charges and I try to get the information they need it and a Social Security board is just give me a hold up a run around for no reason and now it think it might be too late cuz its been over a year I believe and I can't get the right information they need because they keep giving me the runaroundwhat should I do about that

  5. It is wonderful that Indiana DOC is making some truly admirable and positive changes. People with serious mental illness, intellectual disability or developmental disability will benefit from these changes. It will be much better if people can get some help and resources that promote their health and growth than if they suffer alone. If people experience positive growth or healing of their health issues, they may be less likely to do the things that caused them to come to prison in the first place. This will be of benefit for everyone. I am also so happy that Indiana DOC added correctional personnel and mental health staffing. These are tough issues to work with. There should be adequate staffing in prisons so correctional officers and other staff are able to do the kind of work they really want to do-helping people grow and change-rather than just trying to manage chaos. Correctional officers and other staff deserve this. It would be great to see increased mental health services and services for people with intellectual or developmental disabilities in the community so that fewer people will have to receive help and support in prisons. Community services would like be less expensive, inherently less demeaning and just a whole lot better for everyone.

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