Varnum partner Sarah Wixson and attorney Jordan Valentine, along with co-counsel from Miller Johnson (Neil Marchand), Taft (Christopher Ryan), and Secrest Wardle (Chris Cooke), helped secure a major victory in the Michigan Court of Claims involving $6 billion in state-administered behavioral health funding, including Medicaid. The court ruled that the State of Michigan’s Request for Proposal (RFP) for behavioral health services violates Michigan’s Mental Health Code.
Following three days of testimony in December 2025, Judge Christopher P. Yates granted partial summary disposition to Plaintiffs, finding that the RFP “impermissibly conflicts with Michigan law in numerous respects” by restricting Community Mental Health Service Programs (CMHSPs) from fulfilling their statutorily mandated duties. The Court found the RFP bars CMHSPs from entering into financial contracts necessary to provide crisis intervention, recipient rights protections, preadmission screening, and other services required under Michigan law.
The litigation challenged the State’s attempt to restructure Michigan’s behavioral health system through a competitive procurement process that would have reduced the system from 10 regional service areas to three larger regions. Issued in August 2025, the RFP would have fundamentally altered how behavioral health services are delivered to some of Michigan’s most vulnerable residents.
Plaintiffs argued that the RFP unlawfully stripped CMHSPs of their ability to coordinate care and maintain provider networks, despite statutory mandates requiring them to provide comprehensive behavioral health services regardless of an individual’s ability to pay. The court agreed, noting that Medicaid funding constitutes up to 95% of CMHSP budgets and is essential to their ability to meet those legal obligations.
The case was defended by attorneys representing the State of Michigan and its departments.
Wixson is a litigation partner and Co‑Chair of Varnum’s Health Care Practice Team, representing health care providers and organizations in complex commercial disputes and advising on compliance, regulatory, and contracting matters. She has been recognized by Crain’s Detroit Business as a Notable Woman in Law, by Michigan Lawyers Weekly as an Influential Woman of Law, and by DBusiness as a Top Lawyer in health care law.
Valentine is an attorney on Varnum’s Litigation and ADR Practice Team. She represents clients in a variety of disputes, including shareholder, breach of contract, and real estate zoning matters, and advises on regulatory compliance throughout litigation, from hearings and depositions to trial and appellate proceedings.
