State revises contract for Alaska psychiatric hospital

State eyes bids for long-term operation.

Anchorage (AP) — The state plans to seek bids for the long-term operation of the Alaska Psychiatric Institute.

State health commissioner Adam Crum said an agreement was reached with Wellpath Recovery Solutions to amend a February contract that included two phases. The first phase was to run through June and the second was to run for five years, starting in July.

[Labor union sues to block privatization of Alaska Psychiatric Institute]

He said the revised contract extends the duration of the first phase to Dec. 31, 2019. He says Wellpath will provide services until then. The state said a service provider for the second phase would be determined through a process of seeking proposals.

Crum said that’s intended to ensure trust in government, noting questions surrounding the initial contract.

He said a feasibility study underway will inform the process for seeking proposals.

• This is an Associated Press report.