WV seeks new vendor to run PATH system after nearly $400M spent, still not working properly

The state is now looking for a company to take over management of its troubled PATH system, a massive online management system for critical programs, like Medicaid and the foster care system.

PATH stands for the People’s Access to Help system, and its rollout and implementation has been labeled as “disastrous” by state lawmakers. The system, operated by the state Department of Human Services, has been linked to delayed payments for foster care providers.

The system has cost the state nearly $400 million and still isn’t functioning properly. 

The online PATH system manages programs in West Virginia like Medicaid, family assistance and the foster care system. 

Sen. Eric Tarr, R-Putnam, said that he was pleased to hear that the services that are supposed to be provided by the PATH system are out for competitive bid.

“The West Virginia Senate has expressed frustration and demanded a better solution than PATH for years,” Tarr said. “This legacy system failed to deliver the efficiencies necessary for case management of some of the most vulnerable in West Virginia.  The next system must be more intuitive and integrative.”

The state contracted with Optum in 2017 for more than $300 million to build a new Integrated Eligibility System to manage its programs. A portion of the project was paid by federal dollars. 

Lawmakers recently allocated $7.4 million in the FY 2027 state budget for continued operation of the PATH system. 

The state’s contract with Optum goes through 2027.

DoHS has put out a Request for Proposal for a company to take over maintenance and operations of the entire PATH system. There was no estimated price tag named in the RFP. 

“The vendor will be responsible for ensuring high system availability, data integrity and seamless user experience across PATH’s multiple modules and portals,” the document said. 

A spokesperson for DoHS declined to comment for this story since it is currently an open bid contract. 

PATH also oversees the state’s child support system that includes locating parents, enforcing court-issued support orders and distributing support payments. 

A website for PATH, operated by DoHS, also serves as the hub where state residents can be screened for assistance programs or report suspected child abuse and neglect. 

“ … The Vendor will provide increased staffing levels if requirements, timelines, quality, or other standards are not being met, based solely on the discretion of, and without additional cost to, the agency,” the request said. “In making this determination, the Agency will evaluate whether the Vendor is meeting deliverable dates, producing quality materials, consistently maintaining high quality and meeting RFP standards without significant rework or revision.”

Due to ongoing PATH issues, DoHS is also currently seeking $175,000 in emergency funding to hire an outside company that can help address a backlog of delayed payments to vendors, including companies working with foster children.