MHM Services
Encyclopedia
MHM Services, Inc. is a privately held mental health services provider in Tysons Corner
, VA
. The company's principal customers are state
and local
governments.
MHM employs over 2,000 clinical, management, and support staff nationwide. MHM serves approximately 250,000 inmates in 14 different states and in over 250 facilities.
MHM biggest national competition comes from the physical health providers such as Correctional Medical Services
and Prison Health Services, which do mental health services along with their physical health programs http://www.twst.com/notes/articles/kav600.html?netscape.
MHM's size enables it to hire lobbying firms to represent its interests. These interests are frequently opposed by state employees' unions whose members' jobs would be threatened by privatization.
, N.J.
Mediq, Inc.
In 1993, the company was spun off by Mediq and became a publicly traded company. MHM sold off all of its inpatient operations, including its freestanding hospitals, in order to focus solely on providing mental health services in correctional institutions http://www.twst.com/notes/articles/kav600.html?netscape. In 1996, MHM bought Liberty Bay Colony Health Services Inc., a Boston, Mass.-based behavioral management services company specializing in the treatment of older adults. In an interview with Washington Business Journal, Pinkert said he planned to use the approximately $10 million in cash from the sale of MHM's hospitals to buy more businesses.
Meanwhile, Mediq continued to hold an $11 million note against MHM. In 1997, MHM sought to have the note cancelled, claiming Mediq breached its obligations to MHM by forcing MHM officials to sign a note that "unjustly enriches Mediq at MHM's expense"http://washington.bizjournals.com/washington/stories/1997/02/24/newscolumn1.html. The suit also asked the court to require Mediq to pay back $4.5 million MHM had already paid. Pinkert called the note "a tremendous cash drain that we could have put to more productive uses."
A New Jersey Superior Court judge ruled against MHM, putting the company in serious financial trouble. Mediq told reporters that it would pursue collections; meanwhile, the American Stock Exchange
threatened to delist MHM. According to a 1998 MHM press release, the company's independent auditors cited going concern problems in their report. A 1998 Georgia
Department of Corrections audit noted the resolution of the matter with this statement:
This move helped assuage the nerves of MHM's customers, and the company subsequently signed several new contracts. By 2000, its profits were improving markedly, according to MHM press releases. The company went private soon thereafter.
on Spring Hill Road, Vienna, VA since 2004. Each contract is managed through a network of state and regional offices located throughout the United States. Each MHM contract is overseen by a team of program managers and clinical directors dedicated to meeting the unique challenges of the client agencies they serve. The firm has regional offices in:
Tysons Corner, Virginia
Tysons Corner is an unincorporated census-designated place in Fairfax County, Virginia, United States. Part of the Washington Metropolitan Area located in Northern Virginia, Tysons Corner lies between the community of McLean and the town of Vienna along the Capital Beltway . The population was...
, VA
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
. The company's principal customers are state
State government
A state government is the government of a subnational entity in a federal form of government, which shares political power with the federal or national government. A state government may have some level of political autonomy, or be subject to the direct control of the federal government...
and local
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...
governments.
MHM employs over 2,000 clinical, management, and support staff nationwide. MHM serves approximately 250,000 inmates in 14 different states and in over 250 facilities.
Services Provided
MHM offers a wide range of staffing, management, and clinical services across a variety of fields. MHM emphasizes continuous quality improvement – and as a result, MHM is often able to cut costs when finding more efficient ways of providing services.- Correctional Mental Health Services - MHM is a leading national company for providing expert mental health and staffing management services for correctional systems
- Correctional Medical Services - MHM uses a Hybrid Model for medical staffing that provides a transparent, lower-cost alternative to purchasing correctional healthcare services. They provide management and the staffing of physicians, psychiatric and mental health nursingPsychiatric and mental health nursingPsychiatric nursing or mental health nursing is the specialty of nursing that cares for people of all ages with mental illness or mental distress, such as schizophrenia, bipolar disorder, psychosis, depression or dementia...
, and other allied healthcare professionals who work on site. - State Hospital Management Services - MHM has designed a model for state hospitals to assist states with the staffing and day-to-day management of their inpatient psychiatric facilities.
- Community-based Mental Health Services - MHM's subsidiary, Forensic Health Services, Inc. (FHS), provides expertise in pre-trial hearings to sentencing. FHS works with clients to identify risk levels of individuals and delivers services that reduce those risks.
- Forensic Programs - MHM and FHS have programs designed and implemented by senior-level mental health clinicians, our forensic evaluation services done by forensic psychiatrists are founded on evidence-based, best-practice models proven to help reduce risk
Business environment
MHM is the only national company providing mental health services to the corrections market. Most of its competitors are local groups of psychiatrists or psychologists who enter into contracts with individual prisons. These small operations generally do not have sufficient resources to make statewide contracts with Departments of Corrections.MHM biggest national competition comes from the physical health providers such as Correctional Medical Services
Correctional Medical Services
Correctional Medical Services, Inc. is a health care provider headquartered in Creve Coeur, Missouri,The Maine Department of Corrections selected CMS as a party to begin a contract with in early April 2003....
and Prison Health Services, which do mental health services along with their physical health programs http://www.twst.com/notes/articles/kav600.html?netscape.
MHM's size enables it to hire lobbying firms to represent its interests. These interests are frequently opposed by state employees' unions whose members' jobs would be threatened by privatization.
History
MHM was originally founded as Mental Health Management in 1981. According to a Wall Street Transcript interview with MHM CEO Michael S. Pinkert, the company started out developing mental health units in general hospital settings and quickly grew to become the country’s largest provider of inpatient psychiatric care in general hospitals. It then grew by adding freestanding psychiatric hospitals. In 1986, the company was sold to PennsaukenPennsauken Township, New Jersey
Pennsauken Township is a township in Camden County, New Jersey, USA, and a suburb of Philadelphia. As of the 2010 census, the township population was 35,885....
, N.J.
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
Mediq, Inc.
In 1993, the company was spun off by Mediq and became a publicly traded company. MHM sold off all of its inpatient operations, including its freestanding hospitals, in order to focus solely on providing mental health services in correctional institutions http://www.twst.com/notes/articles/kav600.html?netscape. In 1996, MHM bought Liberty Bay Colony Health Services Inc., a Boston, Mass.-based behavioral management services company specializing in the treatment of older adults. In an interview with Washington Business Journal, Pinkert said he planned to use the approximately $10 million in cash from the sale of MHM's hospitals to buy more businesses.
Meanwhile, Mediq continued to hold an $11 million note against MHM. In 1997, MHM sought to have the note cancelled, claiming Mediq breached its obligations to MHM by forcing MHM officials to sign a note that "unjustly enriches Mediq at MHM's expense"http://washington.bizjournals.com/washington/stories/1997/02/24/newscolumn1.html. The suit also asked the court to require Mediq to pay back $4.5 million MHM had already paid. Pinkert called the note "a tremendous cash drain that we could have put to more productive uses."
A New Jersey Superior Court judge ruled against MHM, putting the company in serious financial trouble. Mediq told reporters that it would pursue collections; meanwhile, the American Stock Exchange
American Stock Exchange
NYSE Amex Equities, formerly known as the American Stock Exchange is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange. On January 17, 2008, NYSE Euronext announced it would acquire the...
threatened to delist MHM. According to a 1998 MHM press release, the company's independent auditors cited going concern problems in their report. A 1998 Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
Department of Corrections audit noted the resolution of the matter with this statement:
- on July 16, 1998, just prior to the release of this report, MHM Services Inc. issued a press release reporting that it had settled a nearly $12 million debt with a creditor for a lump sum of $3 million. MHM indicated that as a result of this action, it expected its shareholder equity to increase from a negative position of nearly $8 million to a positive position of approximately $1.7 million.
This move helped assuage the nerves of MHM's customers, and the company subsequently signed several new contracts. By 2000, its profits were improving markedly, according to MHM press releases. The company went private soon thereafter.
Locations
MHM's headquarters are located in Northern VirginiaNorthern Virginia
Northern Virginia consists of several counties and independent cities in the Commonwealth of Virginia, in a widespread region generally radiating southerly and westward from Washington, D.C...
on Spring Hill Road, Vienna, VA since 2004. Each contract is managed through a network of state and regional offices located throughout the United States. Each MHM contract is overseen by a team of program managers and clinical directors dedicated to meeting the unique challenges of the client agencies they serve. The firm has regional offices in:
- AtlantaAtlanta, GeorgiaAtlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
, GAGeorgia (U.S. state)Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788... - NashvilleNashville, TennesseeNashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in Davidson County, in the north-central part of the state. The city is a center for the health care, publishing, banking and transportation industries, and is home...
, TNTennesseeTennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area... - Jefferson CityJefferson City, MissouriJefferson City is the capital of the U.S. state of Missouri and the county seat of Cole County. Located in Callaway and Cole counties, it is the principal city of the Jefferson City metropolitan area, which encompasses the entirety of both counties. As of the 2010 census, the population was 43,079...
, MOMissouriMissouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It... - MontgomeryMontgomery, AlabamaMontgomery is the capital of the U.S. state of Alabama, and is the county seat of Montgomery County. It is located on the Alabama River southeast of the center of the state, in the Gulf Coastal Plain. As of the 2010 census, Montgomery had a population of 205,764 making it the second-largest city...
, ALAlabamaAlabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland... - Philadelphia, PAPennsylvaniaThe Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
- LemoyneLemoyne, PennsylvaniaLemoyne is a borough in Cumberland County, Pennsylvania, United States. Lemoyne was incorporated as a borough on May 23, 1905. As of the 2000 census, the borough population was 3,995. It was formerly named Bridgeport. Lemoyne lies across the Susquehanna River from Harrisburg, Pennsylvania's capital...
, PAPennsylvaniaThe Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to... - Salt Lake CitySalt Lake City, UtahSalt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
, UTUtahUtah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the... - LansingLansing, MichiganLansing is the capital of the U.S. state of Michigan. It is located mostly in Ingham County, although small portions of the city extend into Eaton County. The 2010 Census places the city's population at 114,297, making it the fifth largest city in Michigan...
, MIMichiganMichigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake".... - Baltimore, MDMarylandMaryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
- NortonNorton, MassachusettsNorton is a town in Bristol County, Massachusetts, United States, and contains the village of Norton Center. The population was 18,036 at the 2000 census...
, MAMassachusettsThe Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010... - ConcordConcord, New HampshireThe city of Concord is the capital of the state of New Hampshire in the United States. It is also the county seat of Merrimack County. As of the 2010 census, its population was 42,695....
, NHNew HampshireNew Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...
Sources
- MHM Services, Inc.
- MHM Services' goal is to double its size every year for the next three years, The Wall Street Transcript, Sep. 29, 2000.
- Inpatient approach is on the outs at MHM Services, John Lombardo, Washington Business Journal, Nov. 15, 1996.
- MHM seeks to void note for $11M held by Mediq, John Lombardo, Washington Business Journal, Feb. 21, 1997.
- Ruling hazardous to health of MHM, John Lombardo, Washington Business Journal, Dec. 5, 1997.
- Selection Process and Effect of the Mental Health Service Contract, George Department of Corrections, July 1998.
- MHM Services, Inc. Reports First Quarter Profits Up 123%, MHM press release, Feb. 14, 2000.