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Community Care Behavioral Health Organization Awarded $170 million Managed Care Contract

Expansion to make Community Care the largest not-for-profit behavioral health managed care organization in the country.

PITTSBURGH (September 29, 2006) — Community Care Behavioral Health Organization, a company of the Insurance Division of the University of Pittsburgh Medical Center (UPMC), has been selected by the Pennsylvania Department of Public Welfare to manage behavioral health services for Medicaid members in 23 counties of North Central Pennsylvania.

As a result of this contract, Community Care will become the largest not-for-profit behavioral health managed care organization in the country, supporting Pennsylvania’s HealthChoices program in more than one-half of the counties of the Commonwealth and covering a projected one million lives.

HealthChoices, the state’s mandatory Medicaid managed care program, was first introduced in 1996 to help better meet the needs of high-risk populations. The behavioral health portion of the program was created to improve access to needed mental health and substance abuse services, to improve the quality care and to reduce the rate of growth for the cost of these services.

Community Care, a provider-owned, federally tax-exempt non-profit organization headquartered in Pittsburgh, is a wholly owned subsidiary of the UPMC and a part of the UPMC Insurance Services Division. This contract also positions Community Care as the largest insurance program to be owned by an academic medical center. In addition to Medicaid programs, Community Care also manages behavioral health benefits for commercial and Medicare beneficiaries of UPMC Health Plan.

According to Diane P. Holder, President of UPMC Insurance Services and UPMC Health Plan and Chairman of the Board of Community Care, “This represents a unique opportunity for UPMC to play a major role in re-shaping health care and in improving human services delivery. We believe Community Care is a national model demonstrating the role of payer-provider systems in providing high quality, cost effective care.”

“Community Care welcomes the opportunity to partner with the state and counties to positively impact the delivery of behavioral health services,” said James Gavin, President of Community Care. “We have a strong commitment to making a difference in the lives of individuals in need of behavioral health support. Every individual deserves the opportunity for growth, recovery, and a quality of life that includes community, family, and friends.”

The process resulting in the contract award was exceptionally competitive with the state also receiving proposals from Magellan, Value, and United Behavioral Health. Dominant themes in the evaluation included a demonstrated commitment to the state’s mission along with a willingness to partner in supporting the delivery of recovery-oriented behavioral health services. The process also gave Community Care the opportunity to showcase its exceptional clinical care manager model and sophisticated information system in addition its use of evidence-based practices. The effective date of the contract is January 1, 2007.

About Community Care:

Community Care, a provider-owned, federally tax-exempt non-profit behavioral health managed care organization headquartered in Pittsburgh, manages behavioral health benefits for members throughout Pennsylvania whose health insurance is sponsored through Medicaid and UPMC Health Plan’s Medicare and commercial plans. Community Care is part of the Insurance Services Division of the UPMC, a $6 billion integrated worldwide health system. The flagship company of the Insurance Division, UPMC Health Plan, has pioneered innovative approaches for more effectively managing service delivery. Community Care is uniquely positioned to take advantage of the Health Plan’s expertise in this arena to support continued integration of physical and behavioral health services.

Community Care was founded in 1996 with a mission to provide accessible, high-quality, cost-effective, culturally sensitive behavioral health care. Community Care has been awarded “full” accreditation (the highest level possible) for its commercial product from NCQA.

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Community Care Contact: Marianne Baugher   Phone: 412-454-2636   Fax: 412-454-2177

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