ValueOptions, OptumHealth both gave big to guv

Posted 5/19/2009 01:30:00 PM

Contributions to Richardson’s presidential campaign aren’t the full extent of his relationship with companies whose battle for a state contract is under investigation

By Gwyneth Doland and Heath Haussamen

Both companies involved in a controversy over the awarding of the state’s behavioral health services contract -- a process that’s under investigation by a federal grand jury -- gave big to Gov. Bill Richardson’s 2008 presidential campaign.

A political action committee and executives tied to UnitedHealth Group, the parent company of OptumHealth New Mexico, gave at least $15,300, according to the money-in-politics Web site OpenSecrets.org. That included $5,000 from the company’s PAC and more than $10,000 from executives of the company.

OptumHealth is scheduled to take over the massive state contract on July 1.

Meanwhile, ValueOptions New Mexico, which is being replaced by OptumHealth, also gave big. Executives, officers and state lobbyists for the company gave nearly $25,000 to Richardson’s presidential campaign, according to The Associated Press. And in 2007, the company’s CEO and his wife hosted a fundraiser for Richardson in Washington, D.C., according to the Albuquerque Journal.

Richardson’s deputy chief of staff, Gilbert Gallegos, had no immediate comment on the contributions from both companies in the context of the procurement process being under investigation. Other officials with Richardson’s government and political organizations did not immediately respond to an e-mail request for comment.

A federal grand jury has subpoenaed documents related to the state’s pending shift from ValueOptions to OptumHealth. The state’s Human Services Department has until next week to respond to the subpoena, which seeks “any and all documents, to include but not limited to specifications, score sheets, and cost proposals” related to the procurement process.

The state’s awarding of the new contract to OptumHealth in January, a year after Richardson dropped out of the presidential race, is also being challenged in court. ValueOptions contends that the state changed its scoring system to favor OptumHealth. State officials say there was no impropriety in the scoring process.

More money

The relationship between the governor and the companies goes beyond contributions to Richardson’s failed run for the White House. ValueOptions, which has held the state contract for four years, also gave $50,000 to the governor’s 2006 re-election campaign.

And UnitedHealth has been generous to the state. In 2004, when Richardson announced a plan to double the number of school-based health centers in New Mexico, the United Health Foundation, which is tied to the company, offered $1 million in help.

“We are tremendously excited about United Health Foundation’s commitment to provide $1 million for New Mexico’s children,” the governor said at the time in a news release. “I want to personally thank Dr. Craig Keyes, the CEO of UnitedHealthcare of New Mexico and Colorado for their generous and timely support through their non-profit United Health Foundation.”

Money flowed the other way, too. Richardson’s presidential campaign paid more than $115,000 to United HealthCare for “insurance,” according to OpenSecrets.org.

Part of GRIPgate, or a separate investigation?

In seeking the new behavioral health services contract last year, both companies hired consultants who are close to Richardson. ValueOptions hired Dave Contarino, the governor’s former chief of staff and campaign manager, while, according to the Albuquerque Journal, OptumHealth hired Denver political consultant Mike Stratton, another member of the governor’s inner circle.

Both men are among those who have been scrutinized in GRIPgate, the federal grand jury investigation of allegations of pay to play in the Richardson administration. Until now, the investigation has centered primarily on allegations that the Richardson administration traded a lucrative state bond contract for $110,000 in contributions to Richardson’s political committees and his 2006 gubernatorial campaign.

It’s not clear whether the subpoena for records relating to the behavioral health services contract is related to the GRIPgate investigation or is part of a separate probe.

In addition to running this site, Haussamen writes for the New Mexico Independent. Doland also writes for NMI.