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Massachusetts Executive Office of Health and Human Services·Massachusetts

27MMEHSPSYCHHOSPITALRFA: Rate Year 2027 Psychiatric Hospital Request for Applications

Closes 9/30/2027$5M – $15MRequest for Proposal
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Description

The Commonwealth of Massachusetts is seeking applications from eligible in‑state psychiatric hospitals to become MassHealth providers for the 2027 fiscal year. Applicants must submit a complete package—including licensing, accreditation, Medicare certification, and IT‑interoperability documentation—to deliver a full suite of inpatient and outpatient psychiatric services, with optional specialty programs for neuro‑developmental disorders and eating disorders. The contract is a one‑year, open‑enrollment agreement with the possibility of up to five extensions, and payment is primarily per‑diem based with supplemental quality‑based incentives. • Provide inpatient psychiatric care (per‑diem $954.59) and optional specialty per‑diems ($1,936.21 for neuro‑development, $1,500 for eating disorders). • Deliver outpatient services subject to a 64.8 % cost‑to‑charge ratio. • Meet extensive health‑information‑technology, quality‑measure, and adverse‑incident reporting requirements. • Initial application deadline 23 Sep 2026 5 PM; award anticipated 29 Sep 2026; contract runs 1 Oct 2026 – 30 Sep 2027.

Attached files

Contact

Kate Agyeman(Info Contact)

[email protected]

(857) 972-6188

Key dates

Opened
9/9/2026
Questions due
9/16/2026
Closes
9/30/2027
Projected award
9/29/2026
Duration
1 years

Last updated

Details

Type
Request for Proposal
Industry
Healthcare and Medical Services
NAICS
622110
Solicitation №
BD-27-1039-EHS01-ASHWA-133295

Budget estimate

$5,000,000 – $15,000,000

The contract’s payment structure is per‑diem (≈ $955/day) plus specialty per‑diems and a $3.875 M quality‑incentive pool, plus a $33 M supplemental pool. Assuming a medium‑size psychiatric hospital with ~200 licensed beds operating at ~80 % occupancy, annual per‑diem revenue could be roughly $5 M–$6 M. Adding potential specialty and incentive payments could raise total contract value to $8 M–$12 M. Therefore a realistic earnings range for a qualified provider is estimated between $5 million and $15 million.

AI estimate from the solicitation

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