Miller Johnson Secures Major Victory in Michigan Behavioral Health Litigation
Miller Johnson Litigation Group Chair Neil Marchand and Attorneys Andrew Goetz, Erin Lane, and Jen McManus, partnered with co-counsel from Taft (Christopher Ryan), Varnum (Sarah Wixson), and Secrest Wardle (Chris Cooke) to secure a major declaratory ruling in the Michigan Court of Claims. The Court declared that the State’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.
What Was at Stake
The litigation challenged the State’s attempt to transition Michigan’s behavioral health system through a competitive procurement process. The RFP, issued in August 2025, affects approximately $6 billion in state-administered Medicaid funding and would have fundamentally restructured how Michigan delivers behavioral health services to its most vulnerable citizens.
Plaintiffs argued the RFP unlawfully stripped CMHSPs of their ability to manage 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, finding that Medicaid funding comprises up to 95% of CMHSP budgets and is essential for them to fulfill their legal obligations.
The case was defended by five attorneys general representing the State of Michigan and its departments. The full opinion can be found here (https://www.courts.michigan.gov/48d9d5/siteassets/case-documents/opinions-orders/coc-opinions-(manually-curated)/2026/25-000143-mb.pdf).
Marchand, who also serves as Vice Chair of Miller Johnson’s Mental Health Law practice, is an experienced commercial and probate litigator. He represents mental health providers, health systems, businesses and individuals, and has been repeatedly recognized in publications such as Best Lawyers in America and Super Lawyers.
Goetz is a member in the firm’s Detroit office and Chair of the firm’s Internal Investigations and Compliance group. His practice focuses on internal and government investigations as well as complex and appellate litigation. Prior to joining the firm, Goetz served as Appellate Chief for the U.S. Attorney’s Office in the Eastern District of Michigan.
Lane is an associate in the firm’s Grand Rapids office, focusing on commercial litigation, government procurement, Native American law, and criminal law. With over twelve federal jury trials and six appellate oral arguments, Lane has been recognized as one of Crain’s Grand Rapids Notable Litigators & Trial Attorneys.
McManus is a member in the firm’s Grand Rapids office, focusing on internal and government investigations as well as complex and appellate litigation. Prior to joining the firm, McManus served as the First Assistant U.S. Attorney and Appellate Chief for the U.S. Attorney in the Western District of Michigan, and has received an “Influential Women of Law” award from Michigan Lawyers Weekly.
Miller Johnson is a full-service firm providing legal counsel to businesses and individuals in corporate matters, employment and labor law, litigation, employee benefits, and private client representation including estate planning and family law. Since 1959, Miller Johnson has been Michigan-based and has served clients worldwide.
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