TakeCare has asked the Superior Court of Guam to find the Department of Administration in violation of a provision that automatically halts the government health insurance procurement process while it's under protest. The company has also requested the court to send the company's protest back to the Office of Public Accountability to determine the merits of the case.
In a motion for summary judgment, TakeCare argues the Department of Administration and the Office of Public Accountability applied the protest and appeal decisions incorrectly.
TakeCare has two pending lawsuits against the government of Guam and the Judiciary over the health insurance procurement process. The company argues it submitted a timely protest of DOA’s request for proposal.
Both DOA and the Office of Public Accountability have taken the position that TakeCare’s protest was untimely and should have been filed within 14 days after the RFP was issued on April 1.
TakeCare attorney Louie Yanza contends the conclusion is erroneous because TakeCare learned it would no longer be a qualified offeror for the request for proposal on May 1. The company maintains that at the time the RFP was issued, DOA required all bidders submitting a proposal to include the island's public and private hospitals in its network.
Yanza said neither the RFP nor Public Law 35-2 required that TakeCare have a direct contract with Guam Regional Medical City, but instead required GRMC to be in TakeCare’s network. Up until May 1, TakeCare had “every reason” to believe that GRMC was in its network because of a previously arranged network access services agreement with Netcare which allowed Netcare to lease in-network access to GRMC to TakeCare, court documents state.
On May 1, GRMC took the position that it would not allow any other local health plan to access Netcare’s in-network rates with GRMC and that all Guam-based health plans needed to directly contract with GRMC for in-network rates.
TakeCare maintains it first learned of this on May 1 and also learned that it was wrongfully disqualified as a bidder.
A protest was filed two days later.
The government of Guam – and the Judiciary of Guam as a separate health insurance contractor – have moved to dismiss TakeCare’s lawsuit in the District Court.