LANSING, Mich. (Michigan News Source) — Michigan’s mental health system could soon get a top-to-bottom makeover if a judge decides the state is allowed to do it.

Michigan Court of Appeals Judge Christopher Yates is expected to rule soon on whether the state’s latest proposal to restructure mental health services by opening management to private operators complies with state law.

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The dispute centers on a Michigan Department of Health and Human Services (MDHHS) proposal that would allow both public and private entities to bid on overseeing regional mental health networks known as Prepaid Inpatient Health Plans (PIHPs). The state currently divides that work among 10 regions.

Several Community Mental Health agencies and regional plans sued after MDHHS issued its request for proposals, arguing the plan would make it impossible for them to function and could cut off access to Medicaid funding. Attorneys for the agencies warned the proposal would leave them responsible for providing care without the money to support it.

State officials argue the opposite—that the existing system lacks accountability and allows agencies to effectively oversee themselves. Moreover, MDHHS says any winning bidder would still be required to contract with Community Mental Health providers to deliver services.

Yates has already ruled the state may seek public and private bids and reduce the number of regions. His upcoming decision will focus only on whether the proposal issued by MDHHS crosses a legal line.

“I am not here to determine what good policy is,” Yates said. “All I have to do is determine if the request for proposals is in violation of state law.”

The ruling could determine whether Michigan’s mental health system stays largely public or enters a new, more privatized era.