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A New Mexico-based healthcare company said this week it is challenging its loss of a state Medicaid contract, alleging unfair competition from a company that helped evaluate bids.

In a lawsuit filed in state District Court, Molina Healthcare alleges numerous contracting irregularities by the state Human Services Department.

Molina said a contracting consultant used by the department had a conflict of interest because of financial ties to a competitor that ultimately replaced Molina as a Medicaid  contractor.

Molina made millions in managed care fees from Medicaid, which serves more than 850,000 low-income people in New Mexico, according to the Santa Fe New Mexican.

The Human Services Department didn’t respond to the newspaper’s request for comment on Molina’s lawsuit.

In court documents, Molina alleges the Human Services Department sped up the contracting process and changed evaluation factors unreasonably during the bid process.

“The fact that the State rushed the [contracting] timeline, did not schedule oral presentations, and made the decision in a vacuum, reflects another potential injustice on New Mexico’s most vulnerable residents,” Molina President Daniel Sorrells said in a news release.

Molina also said the use of consultant Mercer inappropriately influenced the bid process when it coached state officials in contract evaluation. Molina said Mercer has a multibillion-dollar contractual relationship with Envolve, a sister company of the ultimate contract winner, Western Sky Community Care.

The newspaper said a spokesperson for Centene, the parent company of Envolve and Western Sky, couldn’t be reached for comment.