Blue Cross v. State Department of Health Care Services

Plaintiff Blue Cross of California (Blue Cross) appeals from a judgment denying a petition for writ of mandate (Code Civ. Proc., § 1085) to set aside the decision of a hearing officer of the defendant State Department of Health Care Services (DHS or Department) that granted the appeal of real party in interest Molina Healthcare of California (Molina *324 Healthcare) and set aside the Department’s notices of intent to award managed care contracts to Blue Cross for Riverside and San Bernardino Counties.

Plaintiff Blue Cross and real party in interest Molina Healthcare submitted competing bids to the Department to provide managed health, care services to the members of California’s Medi-Cal program residing in Riverside and San Bernardino Counties.

The bid process was initiated by the issuance of a request for proposal (RFP), soliciting bids for contracts to manage the medical care of Medi-Cal members in each county and establishing conditions for the bid. The RFP required a separate bid proposal for each county that contained a list of providers who had contracted with the bidder to render medical services to members residing in the county. The RFP is administered by the…