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Board Chooses Healthcare Contractor Despite Objection From Losing Bidder

by Kaia

The Board of Public Works gave the green light to a $724 million contract for pretrial detention medical and mental health services, despite objections from the current service provider.

The unanimous decision, made by the three-member board, approves the contract with Centurion of Maryland, despite ongoing appeals from YesCare, the incumbent provider backed by private equity. YesCare, which currently offers services to the Department of Public Safety and Correctional Services, filed appeals, urging the board to delay the vote, citing a policy against intervening in protested contracts.

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Wednesday’s decision effectively ends ties with YesCare, the troubled incumbent contractor. However, it puts the board in a tough spot, having to settle the contract as the losing bidder appeals to the Maryland State Board of Contract Appeals.

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Comptroller Brooke Lierman, alongside Lt. Gov. Aruna Miller and Treasurer Dereck Davis, voted in favor of the Centurion contract. Lierman emphasized that agencies shouldn’t rely on the Board of Public Works to resolve protests unless absolutely necessary. She also warned against vendors filing frivolous appeals, which could harm the state and its citizens.

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Lierman stressed the importance of respecting administrative and judicial processes while ensuring that the state isn’t taken advantage of.

The contract with Centurion of Maryland LLC spans five years, with a single two-year renewal option, totaling approximately $724 million—about $144 million more than YesCare’s bid.

YesCare filed two protests with the corrections department, both of which were denied. The company then appealed to the Maryland State Board of Contract Appeals, with hearings pending.

Philip Andrews, representing YesCare, argued that the board shouldn’t award the contract while timely appeals are pending. However, Joseph W. Sedtal, deputy secretary of administration for the Department of Public Safety and Correctional Services, urged approval, citing the agency’s immediate needs.

Sedtal acknowledged Centurion’s higher bid but defended it as the best value for the state and taxpayers, emphasizing that a low bid doesn’t guarantee success.

The vote marks the latest step in the Board of Public Works’ efforts to address concerns about medical and mental health care in correctional facilities. YesCare, formerly known as Corizon, has faced criticism for its services, failure to pay bills, and staffing issues.

In March, the board approved a nine-month, $125 million extension with YesCare while seeking new bids for separate health care contracts. The contract awarded to Centurion is in addition to a $1.7 billion contract for health care in the state’s prison system, which Centurion also secured, with YesCare appealing that decision as well.

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