Document:

<PAGE>   1
                                                                    EXHIBIT 10.1

STATE OF GEORGIA
COUNTY OF FULTON

WHEREAS, THE GEORGIA DEPARTMENT OF ADMINISTRATIVE SERVICES (HEREINAFTER "DOAS")
ISSUED REQUEST FOR PROPOSAL # 419-03-00365 (HEREINAFTER "RFP"), WHICH IS
INCORPORATED HEREIN, FOR THE PROVISION OF MENTAL HEALTH AND MENTAL RETARDATION
REHABILITATIVE SERVICES DETERMINED NECESSARY BY THE PRE ADMISSION SCREENING AND
ANNUAL RESIDENT REVIEW (PASARR) PROGRAM ON BEHALF OF THE GEORGIA DEPARTMENT OF
MEDICAL ASSISTANCE (HEREINAFTER "DMA"); AND

WHEREAS, MHM CORRECTIONAL SERVICES, INC. (HEREINAFTER "THE CONTRACTOR")
SUBMITTED A RESPONSE TO THE RFP, WHICH IS INCORPORATED HEREIN, AND HAS BEEN
SELECTED BY DOAS AND DMA TO PERFORM SAID SERVICES SPECIFIED WITHIN THE RFP;

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS
CONTAINED HEREIN AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND
SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES AGREE AS FOLLOWS:

4.000    GENERAL

         The RFP, any addenda thereto, and the Contractor's proposal submitted
         in response to the RFP, including any best and final offer, are
         incorporated in this contract as amended by reference and form an
         integral part of this Contract (hereinafter "the Contract"). The
         Contractor shall perform all of the services described herein, and
         shall develop, produce, and deliver to DMA all of the deliverables
         described in the RFP, and DMA shall make payment therefore as described
         in Section 4.120, below.

         In the event of a conflict in language between the various documents
         incorporated into this contract, the provisions and requirements set
         forth in this contract, as amended shall govern. In the event of a
         conflict between the language in the RFP, as amended, and the
         Contractor's proposal, the language in the RFP shall govern.

         This contract shall be executed on behalf of the Georgia Department of
         Medical Assistance (DMA) by the Georgia Department of Administrative
         Services in accordance with the Purchasing Act (OCGA, Title 50, Chapter
         5, Article 3).

4.010    INDEPENDENT CONTRACTOR

         It is expressly agreed that the Contractor and any officers or
         employees of the Contractor in the performance of this contract shall
         act in an independent capacity and not as officers or employees of DMA.
         It is further expressly agreed that this contract shall not be
         construed as a partnership or joint venture between the Contractor and
         DMA.

4.020    LICENSE REQUIREMENTS

         The Contractor shall have, or obtain, and maintain any licenses or
         permits that are required prior to and during the performance of work
         under this contract.

                                                                             4-1

<PAGE>   2

4.030    PATENT OR COPYRIGHT INFRINGEMENT

         The Contractor, at its expense, will defend any claim or suit which may
         be brought against the State for the infringement of United States
         patents or copyrights arising from the Contractor's or State's
         authorized use of any equipment, materials, or information prepared or
         developed specifically in connection with performance of the contract
         and in any suit will satisfy any final judgment for such infringement.
         The State will give the Contractor written notice of such claim or suit
         and full right and opportunity to conduct the defense thereof, together
         with full information and all reasonable cooperation. If principles of
         governmental or public law are involved, the State may participate in
         the defense of any such action, but no costs or expenses shall be
         incurred for the account of the Contractor without the Contractor's
         written consent.

         If, in the Contractor's opinion, the equipment, materials, or
         information mentioned in the paragraphs above is likely to or does
         become the subject of a claim of infringement of a United States patent
         or copyright, then without diminishing the Contractor's obligation to
         satisfy any final award, the Contractor may, with the State's written
         consent, substitute other equally suitable equipment, materials, and
         information, or at the Contractor's option and expense, obtain the
         right for the State to continue the use of such equipment, materials
         and information.

4.040    INDEMNIFICATION AGREEMENT

         The Contractor agrees to indemnify, defend, save and hold harmless the
         State of Georgia, DMA, DOAS and their officers, employees, and agents
         (including the State Tort Claims Trust Fund, and all other self-insured
         funds), hereinafter collectively referred to as the "Indemnitees" from
         any and all claims, demands, liabilities, losses, costs or expenses,
         attorneys' fees, and suits of any nature whatsoever caused by, growing
         out of, or arising from this Contract, due to any act or omission on
         the part of the Contractor, its officers, employees, consultants,
         subcontractors, agents, licensees or others working at the direction of
         Contractor or on its behalf, or due to any breach of this Contract by
         the Contractor, or due to the application or violation of any pertinent
         federal, state or local law, rule or regulation. This indemnification
         extends to the successors and assigns of the Contractor, and this
         indemnification survives the termination of the contract and the
         dissolution or the bankruptcy of the Contractor, to the extent allowed
         by the law. If and to the extent such damage or loss (including costs
         and expenses) as covered by this indemnification is covered by the
         Funds established and maintained by the DOAS, the Contractor agrees to
         reimburse the Funds for such monies paid out by the Funds.

         This indemnification applies whether (a) the claims, demands,
         liabilities, losses, costs or expenses involve third parties,
         employees, subcontractors, consultants, agents, clients, invitees, or
         licensees of the Contractor or of the Indemnitees; or (b) the
         Indemnitees are partially responsible for the situation giving rise to
         the claim. This indemnification applies, without limitation, (a) to any
         claim or loss to any person or firm injured or damaged by the erroneous
         or negligent acts, including without limitation, disregard of federal
         or DMA regulations or state or federal statutes, of the Contractor, its
         officers, employees, consultants, or subcontractors, in their
         performance of this Contract; (b) to

                                                                             4-2
<PAGE>   3

         any claims or losses resulting to any person or firm injured or damaged
         by the Contractor, its officers, employees, consultants, or
         subcontractors by the publication, translation, reproduction, delivery,
         performance, use or distribution of any data processed under the
         Contract in any manner not authorized by this Contract, or federal or
         state regulations or statutes; and (c) to any failure of the
         Contractor, its officers, employees, consultants, or subcontractors to
         observe Georgia laws, including but not limited to labor laws and
         minimum wage laws.

         This indemnification does not apply to the extent of the sole
         negligence of the Indemnitees.

4.050    FORCE MAJEURE

         Neither party to this contract shall be responsible for delays or
         failures in performance resulting from acts beyond the control of such
         party. Such acts shall include but not be limited to acts of God,
         strikes, riots, lock-outs, acts of war, epidemics, fire, earthquakes,
         or other disasters.

4.060    CONFLICT OF INTEREST

         The Contractor covenants that it presently has no interest and shall
         not acquire any interest, direct or indirect, which would conflict in
         any manner or degree with its performance hereunder. The Contractor
         further covenants that in the performance of the contract no person
         having any such interest is presently employed or shall be employed in
         the future by the Contractor.

         All of the parties hereto hereby certify that the provisions of Chapter
         45-10-20 through 45-10-28 of the OCGA have not been violated and will
         not be violated in any respect.

4.070    OFFER OF GRATUITIES

         By submission of a proposal, the Contractor certifies that no member or
         delegate of Congress, nor any elected or appointed official or employee
         of the State of Georgia, the General Accounting Office, the Department
         of Health and Human Services, HCFA, or any other Federal agency has or
         will benefit financially or materially from this contract. The contract
         may be terminated by the State if it is determined that gratuities of
         any kind were either offered to or received by any of the
         aforementioned officials or employees from the Contractor, his officers
         or employees.

4.100    TERM OF THE CONTRACT

         The contract shall begin on the date of issuance and shall continue
         until the close of the State Fiscal Year 2000 (June 30, 2000), unless
         renewed as hereinafter provided.

         DMA is hereby granted three (3) successive options to renew this
         contract for additional terms of up to one fiscal year each, all upon
         the same terms, conditions and price in effect, according to the
         Contractor's price proposal. Each such option shall be exercised

                                                                             4-3
<PAGE>   4

         solely at DMA's discretion no later than June 1 for each subsequent
         year, subject to satisfactory performance and available funding. As to
         each term, the contract shall terminate absolutely at the close of the
         then current fiscal year without further obligation by DMA.

4.110    PERFORMANCE BOND

         The Contractor shall obtain and maintain for each contract period a
         performance bond issued by a surety company that is listed in the
         Federal Registry of Surety Companies in the amount of twenty five
         percent (25%) of the contract period total amount as specified in the
         Price Schedule (Appendix F). The Contractor shall submit same to DMA
         prior to or at the time of execution of the contract or any renewals.
         The performance bond shall be forfeited by the Contractor in the event
         that the Contractor is unable to properly, promptly and efficiently
         perform the contract and/or the contract is terminated by default or
         bankruptcy.

         The Federal Registry of Surety Companies is updated every July 1st, and
         can be obtained by contacting:

                  Federal Registry of Surety Companies
                  Circular #570
                  Department of the Treasury
                  Surety Section
                  401 14th Street, SW
                  Washington, D.C. 20227
                  Telephone: (202) 874-6850

4.120    REIMBURSEMENT

         The total cost DMA shall reimburse the Contractor shall not exceed the
         amount proposed in the responding Price Proposal (Appendix F). DMA
         shall have no responsibility for cost beyond the total amount specified
         in Appendix F for the contract period.

4.130    LIMITATION OF DMA'S LIABILITY

         The total obligation of DMA for any term of this contract shall not
         exceed the fund sources committed to this contract by DMA as of its
         effective date, together with any additional fund sources subsequently
         determined to be available and committed to it by DMA.

4.140    LIABILITY FOR OVERPAYMENT, ENTITLEMENT TO UNDERPAYMENT

         Any person or entity that replaces a Contractor in the Georgia Medicaid
         Program shall be deemed to have accepted joint and several liability,
         along with its predecessor, for any overpayment, sought to be recovered
         by DMA after the effective date of the successor Contractor take-over,
         regardless of the successor's contract status or lack of affiliation
         with its predecessor at the time the overpayment was made. An entity
         shall be deemed to

                                                                             4-4
<PAGE>   5
         have replaced a Contractor if it (1) effectively became a different
         legal entity through incorporation, re-incorporation, merger, joint
         venture, dissolution, creation of a partnership, or re-organization;
         (2) took over more than fifty percent (50%) of the predecessor's assets
         or Medicaid activities; or (3) has substituted for the predecessor in
         the program, as evidenced by all attendant circumstances. Reimbursement
         for services rendered prior to the effective date of take-over by a
         successor Contractor (including any adjustments for underpayment made
         by DMA) shall be made to the Contractor of record at the time the
         payment is made or to that Contractor's payee as properly designated on
         the appropriate form(s) required by DMA. Any disputes or conflicts,
         legal or otherwise, arising between the current Contractor and the
         predecessor Contractor concerning either apportionment of liability for
         any overpayment previously made by DMA or the right to additional
         reimbursement for any underpayment previously made by DMA shall be the
         sole responsibility of such parties and shall not include DMA.

4.150    TAXES

         The Contractor will forthwith pay all taxes lawfully imposed upon it
         with respect to this contract or any product delivered in accordance
         herewith. DMA will forthwith pay all taxes lawfully imposed upon it
         with respect to this contract or any product delivered in accordance
         herewith. DMA makes no representation whatsoever as to the liability or
         exemption from liability of the Contractor to any tax imposed by any
         governmental entity.

4.160    CONTRACTOR PERSONNEL

         The Contractor warrants and represents that all persons, including
         independent subcontractors and consultants assigned by it to the
         performance of this contract shall be employees of the Contractor and
         shall be fully qualified to perform the work required herein. The
         Contractor shall include a similar provision in any contract with a
         subcontractor selected to perform work hereunder.

         DMA shall have the absolute right to approve or disapprove any of the
         Contractor's staff as defined in the RFP Section 3.110 and 5.110, which
         are assigned to this contract, to approve or disapprove any proposed
         changes in staff, or to require the removal or reassignment of any
         Contractor employee or subcontractor employee found unacceptable by
         DMA. The Contractor shall, upon request, provide DMA with a resume of
         any member of its staff, including independent contractors and
         consultants or subcontractor's staff assigned to any aspect of the
         performance of this contract. Personnel commitments made in the
         Contractor's proposal shall not be exchanged except as herein above
         provided, or due to a resignation of any named individual. Contractor
         staffing will include the named individuals at the levels of effort
         proposed in the Contractor's technical proposal.

         Replacement of any personnel will be with personnel of equal ability
         and qualifications as determined by DMA. No diversion of staffing will
         be made by the Contractor without prior written consent of DMA.

         The Contractor shall provide staff to perform all tasks specified as
         the Contractor's
                                                                             4-5
<PAGE>   6

         responsibilities in this RFP. The staff level must be maintained at the
         bid level or as authorized in writing by DMA for the duration of the
         contract. Failure of the Contractor to provide staffing at the bid
         level or level amended by any contract amendment or to receive DMA
         written approval for staffing changes may result in liquidated damages,
         as stated in RFP Section 4.700.

         All professional and administrative personnel will be committed to this
         contract by the Contractor unless DMA exercises its option to have a
         staff person removed. DMA will be provided unrestricted access to
         Contractor personnel for discussion of problems or concerns. DMA will
         not arbitrarily exercise staff removal options, but will work with
         contractor to resolve personnel issues.

4.170    SUBCONTRACTS

         The Contractor will not subcontract or permit anyone other than the
         Contractor personnel to perform any of the work, services, or other
         performance required of the Contractor under this contract, or assign
         any of its rights or obligations hereunder, without the prior written
         consent of DMA. No subcontract which the Contractor enters into with
         respect to the performance of this contract shall in any way relieve
         the Contractor of any responsibility for any performance required of it
         by this contract. Any purported assignment not explicitly authorized by
         DMA is null and void.

         The Contractor shall give DMA immediate notice in writing by registered
         or certified mail of any action or suit filed against it by any
         subcontractor, and prompt notice of any claim made against the
         Contractor by any subcontractor or vendor which in the opinion of the
         Contractor may result in litigation related in any way to this contract
         with DMA and the State of Georgia.

         The Contractor shall submit or shall require any subcontractors
         hereunder to submit cost or pricing data prior to the award of any
         subcontract. This information shall be forwarded to DMA for review and
         approval.

         The Contractor shall certify, and also shall require subcontractors to
         certify, in a form satisfactory to DMA that, to the best of their
         knowledge and belief, the cost or pricing data submitted under this
         contract is accurate, complete and current as of the date of agreement
         on the negotiated price of the subcontract or of the contract or
         subcontract change.

         The Contractor shall insert the substance of this subsection, including
         this paragraph, in each subcontract hereunder. If DMA determines that
         any price, including profit or fee, negotiated in connection with this
         contract, or any cost reimbursable under this agreement, was increased
         by any significant sums because the Contractor or any subcontractor
         furnished incomplete or inaccurate cost or pricing data not current as
         certified in the Contractor's or subcontractor's certification or
         current cost of pricing data, then such price or cost shall be reduced
         accordingly and this contract and the subcontract, if applicable, shall
         be modified in writing to reflect such reduction.

                                                                             4-6
<PAGE>   7
         Since the contract is subject to reduction under this subsection by
         reason of defective cost or pricing data submitted in connection with
         certain subcontracts, the Contractor shall include a clause in each
         subcontract requiring the subcontractor to indemnify the Contractor as
         appropriate. It is expected that any subcontractor subject to such
         indemnification will generally require substantially similar
         indemnification for defective cost or pricing data required to be
         submitted by its lower tier subcontractors

4.180    ASSURANCE TO COMPLY

         The Contractor further agrees that where the State is bound to
         compliance in any matter related to this contract, the Contractor is,
         to the extent applicable, also bound and will comply, and take measures
         as the State or any laws, rules, regulations and/or orders indicate as
         being required to assure compliance.

         Theses laws, rules, regulations and or orders include but are not
         limited to

         - the Civil Rights Act of 1964, as amended;

         - the Americans with Disabilities Act of 1990 (the ADA), as amended;
           and

         - the Fair Labor Standards Act.

4.190    NON-COMPETITION FOR EMPLOYEES

         During the term of this contract and for a period of one (1) year from
         the date of termination or expiration of this contract, unless
         otherwise agreed to in writing, neither DMA nor the Contractor shall
         solicit for employment as a consultant or independent contractor any
         sales, marketing, or management employee hereinafter and during the
         term of this contract employed by the other, or the Offeror's parent
         company, or any company controlled by, controlling, or under common
         control with the Contractor who is working on this project during the
         prior twelve (12) months; provided, however, the term "solicit for
         employment" shall not be deemed to include advertising in newspapers or
         trade publications addressed to the general public and either party may
         employ any person now or hereafter employed by the other (including the
         Contractor's parent, or any affiliate) who, without other solicitation,
         responds to such an advertisement or applies for employment without
         solicitation.

4.200    RELATIONSHIP OF THE PARTIES

         Neither the Contractor nor any of its agents, consultants, employees,
         and subcontractors with which the Contractor has active service
         agreements shall become or be deemed to become agents, consultants,
         employees or subcontractors of the State or of DMA. The Contractor and
         all such agents, consultants, employees, and subcontractors shall for
         all purposes be deemed to be independent contractors , and this
         contract shall not he construed so as to create a partnership or joint
         venture between the Contractor and DMA or the State.

                                                                             4-7

<PAGE>   8

4.300    CONTRACTOR PERFORMANCE

         The Contractor shall be responsible for the provision of mental health
         and mental retardation rehabilitative services encompassed by the
         PASARR Program, the particular deliverables and reports as specified in
         Section 3 of the RFP. Any additional deliverable required for the
         satisfactory performance of this Contract shall be addressed in an
         amendment.

         DMA shall act as a responsible partner to this Contract, and be
         responsible for the timely review of submitted deliverables. DMA shall
         notify the Contractor of any deliverables which are not acceptable,
         with reason for deficiency, within thirty (30) days of receipt

4.400    INSPECTION OF WORK PERFORMED

         The US Department of Health and Human Services (HHS), the Health Care
         Financing Administration (HCFA), DMA, the General Accounting Office
         (GAO), the Georgia Office of the Attorney General, and any other
         federal, state, county, or local agency with appropriate jurisdiction
         or their authorized representatives or agents shall, at reasonable
         times, have the right to enter the Contractor's premises or other such
         places where duties under the contract are being performed, to inspect,
         monitor, or otherwise evaluate the work being performed and all related
         financial records. All subcontractors must provide reasonable access to
         all facilities and cooperate with state and federal representatives
         conducting inspection visits, audits and investigations.

4.410    CONFIDENTIALITY OF INFORMATION

         The Contractor shall treat all information, specifically information
         relating to recipients and providers which is obtained through its
         performance under this agreement, as confidential information and shall
         not use any information so obtained in any manner except as necessary
         for the proper discharge of its obligations and securement of its
         rights herein, or as otherwise provided herein.

         The Attorney General, federal officials, DMA, or the authorized
         representatives of these parties as authorized by federal law or
         regulations shall have access to all confidential information in
         accordance with the requirements of state and federal laws and
         regulations. Any other party will be granted access to confidential
         information only after complying with the requirements of state and
         federal laws and regulations pertaining to such access. DMA will have
         absolute authority to determine if and when any other party has
         properly obtained the right to have access to this confidential
         information. For any request received under the Georgia Open Records
         Act (OCGA, Section 50-18-70), DMA should be notified immediately for
         review and approval prior to releasing requested information.

         The use or disclosure of information concerning recipients or providers
         will be limited to purposes directly connected with the administration
         of this agreement.
                                                                             4-8
<PAGE>   9
4.500    RECORDS AND DOCUMENTATION

         The state and federal standards for audits of DMA agents, contractors,
         and programs conducted under contract are applicable to this contract,
         and are incorporated by reference into this contract as though fully
         set out here.

4.510    CONTRACTOR ACCOUNTING RECORDS REQUIREMENTS

         The Contractor agrees to maintain books, records, documents, and other
         evidence pertaining to the costs and expenses of this contract
         (hereinafter collectively called the "records") to the extent and in
         such detail as will properly reflect all costs for which payment is
         made under the provisions of any contract of which this contract is a
         part by reference or inclusion.

         The Contractor shall establish and maintain an accounting system in
         accordance with generally accepted accounting principles. The
         accounting system shall maintain records pertaining to the costs and
         expenditures made under this contract.

4.520    RECORDS RETENTION REQUIREMENTS

         The Contractor agrees to make available at its central business office
         at all reasonable times during the period set forth below any of the
         records of the contracted work for inspection or audit by any
         authorized representative of DMA, the state auditor, the US Department
         of Health and Human Services, the General Accounting Office, the
         Georgia Office of the Attorney General, and for the Comptroller General
         of the United States, or their duly authorized representatives.

         The Contractor shall preserve and make available its records for a
         period of three (3) years from the date of final payment under this
         contract, and for such a period of time, if any, as is required by
         applicable statute, by any other section of this contract or associated
         contract.

         If the contract is completely or partially terminated, the records
         relating to the work terminated shall be preserved and made available
         for a period of three (3) years from the date of any resulting final
         settlement.

         Records which relate to appeals, litigation, or the settlements of
         claims arising out of the performance of this contract, or costs and
         expenses of any such agreement as to which exception has been taken by
         the state auditor or any of his duly authorized representatives, shall
         be retained by the Contractor until such appeals, litigations, claims
         or exceptions have been disposed of. A file and report retention
         schedule shall be developed by the Contractor and approved by DMA. The
         schedule shall be maintained by the Contractor and all changes will be
         approved by DMA.
                                                                             4-9
<PAGE>   10

4.530    SUBSTITUTION OF MICRO-MEDIA RECORDS

         Except for documentary evidence, the Contractor may, in fulfillment of
         its obligation to retain its records as required by this article,
         substitute clear and legible photographs, microphotographs or other
         authentic reproductions of such records, after the expiration of two
         (2) years following the last day of the month of payment to the
         Contractor of the invoice to which such records relate, unless a
         shorter period of time is authorized by DMA with the concurrence of the
         state auditor or his duly authorized representatives.

         The provisions of this Records and Documentation subsection shall be
         incorporated into any subcontract.

4.600    INSURANCE

         The Contractor shall at a minimum, prior to the commencement of work,
         procure the insurance policies identified below at the Contractor's own
         expense and shall furnish DMA proof of coverage at least at the amounts
         indicated.:

         -        Workers' Compensation Insurance, the policy(ies) must
                  indemnify the Funds for any claims covered by the Georgia Tort
                  Claims Act.;

         -        liability insurance against bodily injury or death of any one
                  person in any one accident in the amount of two hundred
                  thousand dollars ($200,000) and in the amount of five hundred
                  thousand dollars ($500,000) for the injury or death of more
                  than one person in any accident;

         -        liability for property damage as first-party fire insurance,
                  including contents coverage for all records maintained
                  pursuant to this Contract, in the amount of one hundred fifty
                  thousand dollars ($150,000); and

         -        medical malpractice and liability insurance against bodily
                  injury or death of any one person in any one occurrence in the
                  amount of five million dollars ($5,000,000).

         Each of the insurance policies required shall be issued by a company
         licensed to transact the business of insurance in the State of Georgia
         by the Insurance Commissioner for the applicable line of insurance and,
         unless waived or modified in writing by DMA, shall be an insurer with a
         Best Policyholders Rating of "A" or better and with a financial size
         rating of Class IX or larger. Each such policy shall also contain the
         following provisions, or the substance thereof, made a part of the
         insurance policy.

4.700    LIQUIDATED DAMAGES - FAILURE TO MEET RFP/CONTRACT REQUIREMENTS

         In the event that the Contractor fails to meet the RFP or the contract
         requirements listed below, damage shall be sustained by DMA which will
         be difficult or impossible to ascertain exactly. The Contractor,
         therefore, agrees to pay DMA the sums set forth below as liquidated
         damages, and not as a penalty.

         The Contractor agrees that an assessment of performance will be done on
         a monthly basis. For any month that the items specified in Section
         4.700 have more than 3 occurrences of failure to meet the requirements,
         the liquidated damages will be imposed
                                                                            4-10

<PAGE>   11
         for each item beginning with the date the requirement was not met.

         The DMA will notify the Contractor of all items subject to liquidated
         damages and will process a negative adjustment to deduct the damages
         from subsequent payments.

4.710    TIMELINESS OF PROCESSING REQUIREMENT (RFP SUBSECTION 3.030):

         The Contractor must provide MH/MR rehabilitative services to any new
         NF resident not currently receiving PASARR services within five (5)
         business days of the receipt of the request for services.

         LIQUIDATED DAMAGES:

         Damages in the amount of one hundred dollars ($100) shall be assessed
         for each business day or any part thereof after the deadline before the
         MH/MR rehabilitative services are started.

4.720    STAFFING REQUIREMENTS (RFP SUBSECTION 3.110):

         The Contractor must have a Project Director dedicated full-time to this
         contract.

         LIQUIDATED DAMAGES:

         Damages in the amount of fifty dollars ($50) shall be assessed for each
         business day or any part thereof for failure to have a full-time
         Project Director assigned to this contract.

4.730    STAFFING LEVEL (RFP SUBSECTION 3.110):

         The Contractor must maintain sufficient staffing levels to meet the
         proposed level in the Contractor's Technical Proposal.

         LIQUIDATED DAMAGES:

         Damages in the amount of One-hundred dollars ($100) shall be assessed
         for each business day or any part thereof for failure to maintain
         staffing at the proposed level.

4.740    CREDENTIALING REQUIREMENT (RFP SUBSECTION 3.120):

         The Contractor must verify and certify to DMA that all providers of
         services are properly licensed in accordance with any applicable state
         law, standards and/or regulations, and have in effect such current
         policies of malpractice insurance as required by the Contractor or DMA.

         LIQUIDATED DAMAGES:

         Damages in the amount of five-hundred dollars ($500) per instance
         whenever the
                                                                            4-11
<PAGE>   12

         Contractor does not fulfill the minimum requirements of properly
         credentialing and certifying staff

4.750    CONSULTATION WITH NURSING FACILITY STAFF REQUIREMENT (RFP SUBSECTION
         3.160):

         The Contractor must consult at least once each month, at a minimum,
         with NF staff on the services provided to the PASARR resident.

         LIQUIDATED DAMAGES:

         Damages in the amount of five hundred dollars ($500) per instance
         whenever the Contractor does not fulfill the minimum requirements of
         consultation at least once each month with NF staff to discuss
         recommendations and treatment of a resident.

4.760    CONSULTATION WITH RESIDENT'S ATTENDING PHYSICIAN (RFP SUBSECTION
         3.160):

         Prior to making a change in medication or prescribing new medications,
         the Contractor must consult with the resident's attending physician
         whenever a resident receiving medication monitoring or other services
         requires the intervention of the Contractor's psychiatrist.

         LIQUIDATED DAMAGES:

         Damages in the amount of five hundred dollars ($500) per instance where
         the psychiatrist does not consult with the resident's attending
         physician prior to making a change in the resident's medication.

4.770    RECORD KEEPING REQUIREMENT (REP SUBSECTION 3.270):

         The Contractor shall maintain and shall make available within three (3)
         working days of request all records related to a resident in the PASARR
         population

         LIQUIDATED DAMAGES:

         Damages in the amount of one hundred dollars ($100) shall be assessed
         for each business day or any part thereof for failure to produce any
         record as required.

4.780    IN-SERVICE TRAINING (REP SUBSECTION 3.220):

         The Contractor must provide in-service training on mental health or
         mental retardation issues, or as advised by DMA on a specific topic, to
         NF staff to support and promote skill development on general aspects of
         behavioral health care.

         LIQUIDATED DAMAGES:

         Damages in the amount of one-hundred dollars ($100) per instance when
         the Contractor's staff does not provide in-service training on mental
         health or mental retardation issues

                                                                            4-12

<PAGE>   13
         identified by the Contractor staff, NF staff or as advised by DMA on a
         specific topic.

4.800    TERMINATION OF CONTRACT

         The State may terminate this Agreement for any or all of the following
         reasons:

         -        Default by the Contractor;

         -        The convenience of DMA;

         -        In the event of the insolvency of or declaration of bankruptcy
                  by the Contractor; and

         -        Unavailability of Funds.

         Each of these reasons is described in the following subsections.

4.810    TERMINATION FOR DEFAULT

         The failure of the Contractor to comply with any term, condition, or
         provision of this Agreement shall constitute a default by the
         Contractor. In the event of default, DMA shall notify the Contractor by
         certified or registered mail, return receipt requested, of the specific
         act or omission by the Contractor which constitutes default. The
         Contractor shall have fifteen (15) days from the date of receipt of
         such notification to cure such default. In the event of default, and
         during the above specified grace period, performance under this
         Agreement shall continue as though the default had never occurred. In
         the event the default is not corrected within the grace period, DMA
         may, at its sole discretion, terminate the Agreement for default. Such
         termination shall be accomplished by written notice of termination
         forwarded to the Contractor by certified or registered mail and shall
         be effective at the close of business on the date specified in the
         notice. If it is determined, after the notice of termination for
         default, that the Contractor's failure was due to causes beyond its
         control and without error or negligence on its part, the termination
         shall be deemed a termination for convenience.

4.820    TERMINATION FOR CONVENIENCE

         DMA may terminate performance of work under this Agreement in whole or
         in part whenever, for any reason, DMA shall determine that such
         termination is in the best interests of the State of Georgia. In the
         event that DMA elects to terminate this Agreement pursuant to this
         provision, it shall so notify the Contractor by certified or registered
         mail, return receipt requested. The termination shall be effective as
         of the date specified in the notice.

4.830    TERMINATION FOR INSOLVENCY OR BANKRUPTCY

         In the event that the Contractor shall cease conducting business in the
         normal course, become insolvent, make a general assignment for the
         benefit of creditor, suffer or permit the appointment of a receiver for
         its business or its assets or shall avail itself or become subject to
         any proceeding under the Federal Bankruptcy Act, or any other statute
         of any State relating to insolvency or the protection of the rights of
         creditors, DMA may at its sole discretion terminate this Agreement. In
         the event DMA elects to utilize this

                                                                            4-13
<PAGE>   14

         provision for termination, it shall do so by sending notice of
         termination to the Contractor by registered or certified mail, return
         receipt requested. The date of termination shall be deemed to be the
         date such notice is mailed to the Contractor, unless otherwise
         specified.

4.840    TERMINATION FOR UNAVAILABILITY OF FUNDS

         Notwithstanding any other provision of this contract, the parties
         hereto agree that the charges hereunder are payable by DMA from
         appropriations received by DMA from the General Assembly of the State
         and matched by current percentages of federal financial participation
         (FFP). In the event such appropriations are determined at the sole
         discretion of the Commissioner of DMA no longer to exist or to be
         insufficient with respect to the charges payable hereunder, this
         contract shall terminate without further obligation of DMA as of that
         moment. In such event, the Commissioner of DMA shall certify to the
         Contractor the occurrence thereof, and such certification shall be
         conclusive.

4.850    TERMINATION PROCEDURES

         The Contractor shall:

         -        Stop work under the contract on the date and to the extent
                  specified in the notice of termination;

         -        Place no further orders or subcontracts for materials,
                  services, or facilities, except as may be necessary for
                  completion of such portion of the work under the contract as
                  it is so terminated;

         -        Terminate all orders and subcontracts to the extent that they
                  relate to the performance of work terminated by the notice of
                  termination;

         -        Assign to DMA in the manner and to the extent directed by the
                  Contract Administrator all of the right, title and interest of
                  the Contractor under the orders or subcontracts so terminated,
                  in which case DMA shall have the right, in its discretion, to
                  settle or pay any or all claims arising out of the termination
                  of such orders and subcontracts;

         -        With the approval of the Contract Administrator, settle all
                  outstanding liabilities and all claims arising out of such
                  termination or orders and subcontractors, the cost of which
                  would be reimbursable in whole or in part, in accordance with
                  the provisions of the contract;

         -        Complete the performance of such part of the work as shall not
                  have been terminated by the notice of termination; and

         -        Take such action as may be necessary, or as the Contract
                  Administrator may direct, for the protection and preservation
                  of any and all property or information related to the contract
                  which is in the possession of the Contractor and which DMA has
                  or may acquire an interest.

4.860    TERMINATION CLAIMS

         Afire the receipt of a notice of termination, the Contractor shall
         submit to the Contract Administrator any termination claim in the form
         and with the certification prescribed by the Contract Administrator.
         Such claim shall be submitted promptly but in no event later than six
         (6) months form the effective date of termination. Upon failure of the
         Contractor

                                                                            4-14
<PAGE>   15

         to submit its termination claim within the time allowed, the Contract
         Administrator may, subject to any review required by the state
         procedures in effect as of the date of execution of the contract,
         determine, on the basis of information available, the amount, if any,
         due to the Contractor by reason of the termination and shall thereupon
         cause to be paid to the Contractor the amount so determined.

         Upon receipt of notice of termination, the Contractor shall have no
         entitlement to receive any amount for lost revenues or anticipated
         profits or for expenditures associated with this or in any other
         contract. The Contractor shall be paid only by either the contract
         price(s) for completed deliverables and services delivered to and
         accepted by DMA or at a price mutually agreed upon by the Contractor
         and DMA for partially completed deliverables.

         In the event of the failure of the Contractor and DMA to agree in whole
         or in part as to the amounts with respect to costs to be paid to the
         Contractor in connection with the total or partial termination of work
         pursuant to this article, DMA shall determine on the basis of
         information available the amount, if any, due to the Contractor by
         reason of the termination and shall pay to the Contractor the amount so
         determined.

         The Contractor shall have the right of appeal, as stated in Section
         4.920, from any such determination made by DMA.

4.900    AUTHORITY

         Each party has full power and authority to enter into and perform this
         contract, and the person signing this contract on behalf of each party
         certifies that such person has been properly authorized and empowered
         to enter into this contract. Each party further acknowledges that it
         has read this contract, understands it, and agrees to be bound by it.

4.910    SURVIVAL

         The terms, provisions, representatives and warranties contained in this
         contract shall survive the development and submission of all required
         deliverables and the payment of the purchase price thereof.

4.920    DISPUTES

         Any disputes concerning a question of fact arising from the contract
         which is not disposed of by agreement shall be decided by the Contract
         Administrator who shall reduce the decision to writing and mail or
         otherwise furnish a copy thereof to the Contractor. The decision of the
         Contract Administrator shall be final and conclusive unless within ten
         (10) calendar days from the date of receipt of such copy, the
         Contractor mails or otherwise furnishes a written appeal to the
         Commissioner of DMA. The decision of the Commissioner or a duly
         authorized representative for the determination of such appeals shall
         be final and conclusive unless determined by a court of competent
         jurisdiction to have been fraudulent, or capricious or arbitrary, or so
         grossly erroneous as necessarily to imply bad faith. In connection with
         any appeal proceeding under this
                                                                            4-15
<PAGE>   16

         clause, the Contractor shall be afforded an opportunity to be heard and
         to offer evidence in support of his appeal. Pending a final decision of
         a dispute hereunder, the Contractor shall proceed diligently with the
         performance of the contract in accordance with the disputed decision.

4.930    ATTORNEY'S FEES

         In the event that the state shall prevail in any legal action arising
         out of the performance or non-performance of this contract, the
         Contractor shall pay, in addition to any damages, all expenses of such
         action including reasonable attorney's fees and costs regardless that
         DMA is represented by the Attorney General. The term legal action shall
         be deemed to include administrative proceedings of all kinds, as well
         as actions at law or equity.

4.940    WAIVER

         The waiver by DMA of any breech of any provision contained in this
         contract shall not he deemed to be a waiver of such provision on any
         subsequent breech of the same or any other provision contained in this
         contract and shall not establish a course of performance between the
         parties contradictory to the terms herein.

4.950    SEVERABILITY

         If any part, term or provision of this contract shall he held unlawful,
         unenforceable or in conflict with any law of a federal, state or local
         government having jurisdiction over this contract, the validity of the
         remaining portions or provisions shall not be affected hereby.

4.960    ASSIGNMENT

         The Contractor shall not assign the contract in whole or in part or any
         payment arising therefrom without the prior written consent of DMA. Any
         purported assignment is void.

         Notwithstanding the foregoing, DMA shall have the right to assign the
         contract in whole or in part to a Medicaid Management Information
         System (MMIS) Manager selected by DMA for the duration or any existing
         contract term. All terms and conditions under the contract shall
         survive and pass to the Manager unless and until renegotiated by
         Contractor and Manager.

4.970    CHANGE OF OWNERSHIP OR LEGAL STATUS

        Any Contractor that undergoes a change (including, but not limited to,
        dissolution, incorporation, re-incorporation, reorganization, change of
        ownership or assets, merger, or joint venture) so that as a result, the
        Contractor either becomes a different legal entity or is replaced in the
        program by another contractor, must give DMA at least thirty (30) days
        prior written notice. The successor Contractor simultaneously must
        submit the information requested in Section 5.020-5.150, in this RFP for
        DMA's evaluation. Failure of the successor to submit this information or
        failure to obtain a successful evaluation from DMA will prevent DMA from
        reimbursing any further services as of the date of the 4-16
<PAGE>   17

         change.

4.980    CONTRACT MODIFICATION

         No amendment, modification or alteration of the RFP or Contract,
         including but not limited to the Scope of Services, specific
         deliverables, Price Proposal, or terms and conditions, will be valid or
         effective unless it is in writing and signed by duly authorized
         representatives of the Contractor, DMA and DOAS.

4.990    ENTIRE AGREEMENT

         This contract represents the entire agreement between the parties with
         respect to the subject matter hereof and supersedes all prior
         negotiations, representations or agreements, either written or oral,
         between the parties hereto relating to the subject matter hereof and
         shall be independent of and have no effect upon any other contracts.

         This Contract is executed in three (3) counterparts, each of which is
         deemed an original of equal dignity with the other and which is deemed
         one in the same instrument as the other.

IN WITNESS WHEREOF, the parties hereto have caused their signatures to be
affixed as of the day and year indicated.

<TABLE>
<CAPTION>
GEORGIA DEPARTMENT OF MEDICAL ASSISTANCE

<S>                                    <C>
/s/ WILLIAM R. TAYLOR
------------------------------          -----------------
William R. Taylor, M.D., M.P.H.         Date
Commissioner

CONTRACTOR NAME
----------------

MHM Correctional Services, Inc.
------------------------------
/s/ Robert W. May, Vice Pres
------------------------------          -----------------
(Insert Name and Title)                 Date

/s/ ROBERT W. MAY
------------------------------
</TABLE>

<TABLE>
<CAPTION>
GEORGIA DEPARTMENT OF ADMINISTRATIVE SERVICES

<S>                                    <C>

/s/ T.M. McCLEARN                             4/30/99
------------------------------          -----------------
T.M. McClearn                           Date
Technical Services Procurement Manager
</TABLE>
                                                                           4-17

<PAGE>   18

                                PRICING SCHEDULE
                                      FOR
                                     PASARR
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                Estimated         Monthly Per      Monthly per                Number of      Total Cost
                                Number of         Capita           Capita Payment             Months in      for
                                Residents         Payment per                                 Period         Period
                                                  Resident
                                Column 1          Column 2         Column 3                   Column  4      Column 5
----------------------------------------------------------------------------------------------------------------------------
<S>                             <C>               <C>            <C>                          <C>          <C>
A. Implementation Period
   3/1/99 - 6/30/99                2426            x 131.58 =        $319,213.08               x 4 =          $1,276,852.30

----------------------------------------------------------------------------------------------------------------------------

B. Initial Operational Period:     2507            x 131.58 =        $329,871.06               x 12 =         $3,958,452.70
   7/1/99 - 6/30/2000

----------------------------------------------------------------------------------------------------------------------------

C. First Renewal Year:             2591            x 135.53 =        $351,158.23               x 12 =         $4,213,898.70
   7/11/2000 - 6/30/2001

----------------------------------------------------------------------------------------------------------------------------

D. Second Renewal Year:            2677            x 138.92 =        $371,888.84               x 12 =         $4,462,666.00
   7/1/2002 - 6/30/2003

----------------------------------------------------------------------------------------------------------------------------

E. Third Renewal Year:             2767            x 143.09 =        $395,930.03               x 12 =         $4,751,160.30
   7/1/2002 - 6/30/2003

----------------------------------------------------------------------------------------------------------------------------

F. Total Proposed Price                                                                                       $18,663,029.00
   Total of Column 5

----------------------------------------------------------------------------------------------------------------------------

</TABLE>

Signed:

[SIG]
-------------------------------
Offeror's Committing Authority

1-10-99
----------------
Date

                                                                             F-1<PAGE>   1

                                                                    EXHIBIT 10.2

                       GEORGIA DEPARTMENT OF CORRECTIONS
                             LEGAL SERVICES OFFICE

                            [STATE OF GEORGIA LOGO]

                             PROFESSIONAL SERVICES
                                   AGREEMENT

         THIS AGREEMENT is entered into the 29 day of August, 1997, by and
between the GEORGIA DEPARTMENT OF CORRECTIONS, an agency of the State of Georgia
(hereinafter referred to as the "Department"), and MHM CORRECTIONAL SERVICES,
INC., duly authorized by law to transact business in the State of Georgia (the
"Contractor").

         WHEREAS, the Department desires to engage Contractor to provide certain
services as more fully described below, and Contractor desires to provide such
services in accordance with the terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of these premises and the mutual
promises and agreements hereinafter set forth, the parties hereby agree as
follows:

         1. Scope of Services. The Contractor agrees to perform fully and
faithfully the services described in the Request for Proposals prepared by the
Department and the corresponding Proposal submitted by the Contractor, together
forming Exhibit "A," attached hereto and incorporated by reference herein (the
"Services"), in accordance with standards applicable to similar professionals
practicing in the geographic locality that Services are to be performed. In the
event of any conflict in the interpretation of the Services arising between the
terms and conditions of the Request for Proposals and those of the Proposal,
then the former document shall govern. No additional or different services shall
be performed unless provided for by an amendment to this Agreement, executed by
the parties in the manner provided for herein. No provision of this Agreement
shall be construed to prohibit Contractor from offering similar or different
services to the public, including other State agencies.

<PAGE>   2
         2. Independent Contractor. In the performance of the Services, and for
all tax, liability and insurance purposes, Contractor shall at all times be an
independent contractor and not an agent, representative or employee of the
Department. Contractor may perform Services through employees or subcontractors,
provided in each case that the individuals actually providing the Services shall
meet all applicable criteria set out at Exhibit "A," as reasonably determined by
the Department, provided further that Contractor shall at all times remain
responsible for performance of Services hereunder. Contractor shall determine
the means and manner of performance of Services to be rendered, and Contractor
shall not hold itself out to be an employee or agent of the Department or use
the name of the Department in its business (except to describe its role under
this Agreement).

         3. Compensation. The Department agrees to pay Contractor a sum not to
exceed $6,321,918.20 ( Six Million Three Hundred Twenty-One Thousand Nine
Hundred Eighteen Dollars and Twenty Cents) for the full and faithful performance
of Services during the Term hereof, said sum being payable in monthly
installments in advance, upon receipt of Contractor's monthly invoice in
approved form on or before the 15th of each month (commencing with a September
invoice for October's Services). The Department shall endeavor to pay approved
invoices within 30 days of receipt; however, no interest shall accrue on
past-due amounts.

         Actual payments to the Contractor shall be made on the basis of the
capitated rate of $19.03 (Nineteen Dollars and Three Cents) per inmate, per
month, for the Term hereof. In the event that the Department elects to renew
this Agreement for one or more additional terms, then the foregoing capitated
rate shall be increased as follows:

         July 1, 1998 - June 30, 1999        $19.32 per inmate per month

         July 1, 1999 - June 30, 2000        $19.79 per inmate per month

         July 1, 2000 - June 30, 2001        $20.58 per inmate per month

         July 1, 2001 - June 30, 2002        $21.40 per inmate per month

         The parties acknowledge and agree that a reasonable estimate of the
average daily inmate census for purposes of calculating each month's payment is
36,912 inmates, provided that the initial payment and each monthly payment
thereafter shall be subject to adjustment by the actual average daily inmate
census for the preceding month, itemized separately as a debit or credit on a
subsequent invoice. Commencing with the month of November, 1997, and for each
succeeding month, the Department agrees to submit to the Contractor on or before
the l0th day of each month, the average daily inmate census for the preceding
month.

                                       2
<PAGE>   3
         4. Medication Costs. The Contractor agrees to pay the Department for
the costs of psychotropic medications prescribed by Contractor's physicians in
accordance with the provisions of this paragraph. The Department shall invoice
the Contractor for psychotropic medication inventory on hand as of October 1,
1997, which inventory shall be available to Contractor for prescription purposes
on and after that date. Thereafter, but not more frequently than monthly, the
Department shall invoice the Contractor for supplies of psychotropic medications
purchased to replenish inventory on hand, provided that the Department shall
submit reasonable documentation as required by the Contractor from time to time.
The Contractor shall endeavor to pay appropriately documented invoices within
thirty days of receipt. The Department agrees to repurchase psychotropic
medication inventory upon any termination of this Agreement, including any
extension hereof. The Department's check for the full amount of the cost of said
inventory existing as of the termination date shall be submitted to the
Contractor within sixty days of termination.

         Contractor may propose reasonable alternatives for purchasing,
packaging and distribution of psychotropic medications, and Contractor shall use
best efforts to arrange for such alternatives to be made available to the
Department's other medical services providers. Any savings resulting from use of
such alternative sources shall benefit the Contractor and the Department
equally.

         5. Pledges of Credit. Contractor acknowledges that the State of Georgia
may not lawfully pledge its credit so as to cause a State agency to incur a
financial obligation unless funds to honor the obligation have been lawfully
appropriated. In the event that the source of any payment by the Department as
provided for herein is insufficient, in the sole discretion of the Department,
then this Agreement shall terminate without further obligation of the
Department.

         6. Expenses. The Department shall not be liable for and shall not
reimburse the Contractor for any travel or other expenses incurred by the
Contractor except as required and approved in advance by the Department in
writing. Any request for reimbursement shall be submitted in accordance with
fiscal guidelines established by the Department.

         7. Term of Agreement. This Agreement shall be effective as of October
1, 1997, and shall continue in force and effect until June 30, 1998, unless such
period is extended by mutual agreement of the parties in writing. The Department
shall have the right to terminate this Agreement at any time for its
convenience, with 30 days' prior written notice to the Contractor. Contractor
agrees that no agreement shall be effective to prohibit the Department from, or
in any manner impairing the Department's ability with respect to, engaging the
services of any employees, agents or subcontractors of Contractor in the event
of any termination of this Agreement.

                                       3
<PAGE>   4
         8. Compliance with Laws. The Contractor agrees to perform Services in
accordance with the terms and conditions of this Agreement and in compliance
with all laws, rules, regulations and orders of federal, State and local
governments, including orders of any court of competent jurisdiction. Without
limitation to the generality of the foregoing, Contractor agrees to comply with
any special conditions, undertakings or representations attached hereto, all of
which form a part hereof.

         9. Screening. Contractor acknowledges and agrees that Contractor,
including employees and subcontractors of Contractor, shall be subject to
customary background investigations conducted by duly authorized agents of the
State, and, while on the premises of any GDC facility, Contractor and
Contractor's personnel shall be subject to, and agree to comply with, reasonable
rules pertaining or related to safety and security, including spoken directives
of GDC facility staff.

         10. Licenses, Certifications and Insurance. Contractor agrees to
maintain for the duration of this Agreement all licenses, certifications and
permits applicable to Services. Contractor further agrees to maintain insurance
during the term of this Agreement in amounts and of types reasonably protective
of the respective interests of the parties, and in any event, in amounts and of
types as follows:

         a)       Workers' compensation insurance in amounts established by
                  State law;

         b)       Comprehensive general liability insurance on an occurrence
                  basis, broad form, in the amount of $1,000,000.00 per
                  occurrence/$3,000,000.00 aggregate;

         c)       Auto liability insurance covering owned and nonowned vehicles
                  in the amount of $1,000,000.00 per occurrence/$2,000,000.00
                  aggregate;

         d)       Professional liability insurance in the amount of
                  $1,000,000.00 per occurrence/ $1,000,000.00 aggregate.

The foregoing policies shall be obtained from insurance companies licensed to do
business in the State of Georgia and shall contain a provision that coverages
afforded under the policies will not be canceled or amended without 30 days'
prior written notice. All policies shall be specifically endorsed to provide for
a waiver of the insurance carrier's rights to subrogation against the
Department. Evidence of insurance, in the form of an insurance certificate
naming the Department as a certificate holder, will be required of Contractor
prior to the commencement of Services.

         11. Shop Right. Contractor agrees that any processes, equipment,
proprietary know-how or other proprietary information or matters that are
produced or result, directly or

                                       4
<PAGE>   5

indirectly, from or in connection with Contractor's performance of the Services
shall be the property of the Department, and Contractor further agrees to
execute any and all documents, or take additional actions which may be necessary
in the future to give full effect to this provision.

         12. Cooperation. Contractor, its employees, agents, subcontractors and
assigns, agree to cooperate fully in the defense of any litigation brought
against the Department or Contractor relating to Services to be performed under
this Agreement, and each party shall give the other prompt notice of any claim,
demand, suit or proceeding.

         13. Taxes. Contractor shall be solely responsible for the payment, in a
timely manner, of all federal, State and local taxes, fees or assessments of any
type. Contractor further agrees to indemnify the Department from any loss, cost,
claim, damage or expense arising therefrom.

         14. Entire Agreement. This Agreement constitutes the entire agreement
and understanding between the parties hereto and replaces, cancels and
supersedes any prior agreements and understandings relating to the subject
matter hereof; and all prior representations, agreements, and undertakings
between the parties hereto with respect to the subject matter hereof are merged
herein.

         15. Amendment. The parties recognize and agree that it may be necessary
or convenient for the parties to amend this Agreement so as to provide for the
orderly implementation of all of the undertakings described herein, and the
parties agree to cooperate fully in connection with such amendments if and as
necessary. However, no change, modification or amendment to this Agreement shall
be effective unless the same is reduced to writing and signed by the parties
hereto.

         In the event that there shall be changes in the scope of services,
governmental policies or regulations, the drug formulary governing psychotropic
medications that may be utilized in providing the Services, or other
circumstances, then either party may submit a written request to renegotiate any
of the terms hereof, including but not limited to terms respecting payments to
be made hereunder. However, no request for renegotiation of the Agreement shall
be submitted (a) if at the time this Agreement was executed, the party
submitting the request had actual knowledge of the facts on which the request
would be based, and (b) unless the basis for the request has a substantial and
material financial impact on the party submitting the request. If within thirty
days of receipt of the request, the parties are unable in good faith to
negotiate a satisfactory modification hereto, the party submitting the request
may terminate this Agreement by giving the other sixty days' notice thereof.

                                       5
<PAGE>   6
         16. Notices. Any notice under this Agreement shall be deemed duly given
if delivered by hand (against receipt) or if sent by registered or certified
mail -- return receipt requested, to a party hereto at the address set forth
below or to such other address as the parties may designate by notice from time
to time in accordance with this Agreement.

If to the Contractor:              MHM Correctional Services, Inc.
                                   8000 Towers Crescent Drive
                                   Suite 810
                                   Vienna, Virginia 22182

If to the Department:              Commissioner of Corrections
                                   Georgia Department of Corrections
                                   Room 852, East Tower
                                   Floyd Memorial Building
                                   Two Martin Luther King, Jr., Drive
                                   Atlanta, Georgia 30334

         17. Headings. The headings in this Agreement have been inserted for
convenience only and shall not affect or control the meaning or construction of
any of the provisions of this Agreement.

         18. Survival. The terms, conditions, representations, obligations,
understandings and undertakings herein shall survive any termination of this
Agreement.

         19. Governing Law. This Agreement is executed in the State of Georgia,
and all matters pertaining to the validity, construction, interpretation and
effect of this Agreement shall be governed by the laws of the State of Georgia.

         20. Remedies. No remedies or rights herein conferred upon the parties
are intended to be exclusive of any remedy or right provided by law, but each
shall be cumulative and shall be in addition to every other remedy or right
given hereunder or now or hereafter existing at law or in equity (including the
right of specific performance).

         21. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be an original but all of which shall
constitute one agreement. No party shall be bound by this Agreement until all
parties have executed it.

                                       6
<PAGE>   7

         IN WITNESS WHEREOF, the parties have caused the authorized
representatives of each to execute this Agreement on the day and year first
above written.

GEORGIA DEPARTMENT OF                          CONTRACTOR:
CORRECTIONS:

By:     [SIG]                                  By:      [SIG]
   -----------------------------                  --------------------------

Witness:     [SIG]                             Witness:        [SIG]
       -------------------------                         -------------------

                                       7
<PAGE>   8

                       GEORGIA DEPARTMENT OF CORRECTIONS
                                  LEGAL OFFICE

                                [STATE CREST LOGO]

                              EIGHTH AMENDMENT TO
                        PROFESSIONAL SERVICES AGREEMENT

         THIS AMENDMENT is entered into this 30th day of June, 2000, by and
between the GEORGIA DEPARTMENT OF CORRECTIONS, an agency of the State of
Georgia (the "Department"), and MHM CORRECTIONAL SERVICES, INC., duly
authorized by law to transact business in the State of Georgia ("MHM").

                                  WITNESSETH:

         WHEREAS, the Department and MHM entered into that certain professional
services agreement of August 29, 1997, amended subsequently by further
agreements of the parties (collectively referred to as the "Agreement"); and

         WHEREAS, the parties desire to further amend the Agreement as
provided below.

         NOW, THEREFORE, in consideration of these premises and the mutual
promises and agreements hereinafter set forth, the parties hereby agree as
follows:

Article I - Contract Extension

         The parties mutually agree to extend the effectiveness of their
Agreement for a further one-year period, effective July 1, 2000 through June 30,
2001.

Article 2 - Temporary Dental Services

         1.       MHM will recruit, interview, and make available to the
Department a sufficient number of qualified and licensed dentists for purposes
of providing temporary dental care and services to the Department's inmate
population on an as needed basis.

                                       1
<PAGE>   9
Dentists to be provided by MHM will be made available to fill in for state
temporary dental vacancies related to vacations, illnesses, resignation
or termination from employment, and similar occurrences.

         2.       The number of dentists and the correctional facilities at
which they are to provide services is to be determined and designated by the
Department. All dental care and services to be provided to the Department's
inmate population under this Amendment shall be in accordance with standards
applicable to similar professionals practicing in the geographic locality that
the dental care and services are to be provided. MHM and the dentists are
required to adhere to all of the Department's Standard Operating Procedures
("SOP's") governing the provision of dental care and services. No additional or
different services shall be performed unless provided for by further amendment
to the Agreement, executed by the parties in the manner provided for in the
Agreement. No provision of the Agreement or this Amendment shall be construed to
prohibit MHM from offering similar or different services to the public,
including other State agencies.

         3.       MHM shall provide the Department with the names and curriculum
vitae of all dentists that MHM is considering for purposes of this Amendment.
The Department shall review the qualifications of all prospective dentists in
any manner deemed appropriate by the Department, including criminal background
checks. The Department will notify MHM in writing whether the Department deems
each prospective dentist as an acceptable candidate for providing dental care
and services in a correctional facility. The Department reserves the right to
prevent any dentist it deems unacceptable for providing dental care and services
to the inmate population from entering any Department facility.

         4.       For purposes of ensuring the availability of dentists, MHM
will develop and maintain a "PRN Pool" of qualified dentists for temporary
assignment to the Department. If MHM assigns temporary dentists from any full
time dentists at existing Department facilities, MHM will clearly reflect this
fact on its invoices by clearly indicating the number of hours worked by the
dentist in a temporary and full time capacity.

         5.       MHM will strive to fill temporary dental service assignments
within seven days of receipt of the Department's request for temporary dental
services. If MHM is unable to fill the assignment within seven days of receiving
the Department's request it shall immediately notify the Department of that
fact and provide the Department with an estimate of when the temporary vacancy
will be filled.

         6.       The Department will provide each dentist provided by MHM for
purposes of this Amendment with an orientation of the Department's SOP's
governing the provision of

                                       2
<PAGE>   10

dental care and services in Department facilities and any other SOP's the
Department deems necessary including, but not limited to, security related
SOP's.

         7.       The performance of the dentists provided by MHM for purposes
of this Amendment will be monitored by appropriate Department personnel for
purposes of ensuring that quality dental care and services are being provided to
the inmate population in accordance with all applicable SOP's.

         8.       MHM agrees to require that all dentists provided pursuant to
this Amendment shall maintain for the duration of this Amendment all licenses,
certifications and permits applicable and required for the provision of dental
care and services. MHM further agrees to ensure that insurance is maintained
during the term of this Amendment in amounts and types reasonably protective of
the respective interests of the parties, and in any event, in amounts and of
types as follows:

                  a.)      Workers' compensation insurance in amounts
                           established by State law covering any dentists who
                           may be hired as employees by Contractor;

                  b.)      Comprehensive general liability insurance on an
                           occurrence basis, broad form, in the amount of
                           $1,000,000.00 per occurrence and $3,000,000.00
                           aggregate;

                  c.)      Professional liability insurance in the amount of
                           $1,000,000.00 per occurrence and $1,000,000.00
                           aggregate.

         The foregoing policies shall be obtained from insurance companies
licensed to do business in the State of Georgia and shall contain a provision
that coverages afforded under the policies will not be canceled or amended
without 30 days prior written notice to the Department. All policies shall be
specifically endorsed to provide for a waiver of the insurance carrier's rights
to subrogation against the Department. Evidence of insurance, in the form of an
insurance certificate naming the Department as a certificate holder, will be
required of MHM prior to the commencement of the services contemplated by this
Amendment.

         9.       The Department agrees to pay MHM for the actual hours worked
by each dentist at an hourly rate of $75.00 with a minimum charge of six hours
per assignment. Payments shall be made in monthly installments upon receipt of
MHM's monthly invoice in

                                       3
<PAGE>   11
approved form on or before the 15th of each month. At a minimum, MHM's invoices
for services provided shall specify the site at which the services were
performed and will include supporting documentation detailing the actual hours
provided, and the aforementioned hourly rate for each dentist. The Department
shall endeavor to pay approved invoices within 30 days of receipt; however, no
interest shall accrue on past-due amounts.

         10.      MHM agrees to begin providing temporary dental staffing for
the Department as of July 1, 2000.

Article III - Mental Health Counselors

         1.       MHM agrees to provide the Department with three licensed
Mental Health Counselors at the Georgia State Prison and one Mental Health
Counselor at Whitworth Probation Detention Center. MHM agrees to provide the
Department additional licensed Mental Health Counselor's at additional
facilities upon written request of the Department at the rates specified in
Exhibit A that is attached hereto. At a minimum, MHM's invoices for services
provided shall specify the site at which the services were performed and will
include supporting documentation detailing the actual hours provided, and the
agreed upon hourly rate for each Mental Health Counselor. The Department shall
endeavor to pay approved invoices within 30 days of receipt; however, no
interest shall accrue on past-due amounts.

         2.       For purposes of this Amendment, MHM will recruit and retain
only licensed individuals from the following professional disciplines as defined
by the office of the Georgia Secretary of State:

                  a.       Professional Counselors
                  b.       Associate Professional Counselors
                  c.       Licensed Masters Social Workers
                  d.       Licensed Masters Clinical Social Workers
                  e.       Marriage and Family Therapists

         3.       For purposes of this Amendment, licensed individuals shall
mean individuals who possess a current active Georgia license that is issued by
the office of the Georgia Secretary of State in at least one of the professional
disciplines listed in the foregoing paragraph.

         4.       Any persons retained by MHM as part of this article of this
Amendment possessing licensure as an Associate Professional Counselor or Masters
Level Social Worker will be required to actively pursue licensure at the higher
lever as a Professional Counselor or Clinical Social Worker, respectively.
Accordingly, MHM shall ensure that these individuals will be required to undergo
active and direct supervision as set forth by the office of the Georgia
Secretary of State in order to obtain eligibility to sit for the examination for
licensure at the next

                                       4
<PAGE>   12

highest level. MHM will provide for the direct supervision of these individuals
as required for licensure. In addition, MHM will ensure the documentation of
required supervision is maintained on-site at each facility and made readily
available to the Department upon request.

         5.       All mental health counseling services to be provided to the
Department's inmate population under this Amendment shall be in accordance with
standards applicable to similar professionals practicing in the geographic
locality that the mental health counseling services are to be provided. MHM and
mental health counselors are required to adhere to all of the Department's
Standard Operating Procedures ("SOP's") governing the provision of mental health
counseling services. No additional or different services shall be performed
unless provided for by further amendment to the Agreement, executed by the
parties in the manner provided for in the Agreement. No provision of the
Agreement or this Amendment shall be construed to prohibit MHM from offering
similar or different services to the public, including other State agencies.

         6.       The Department will provide each Mental Health Counselor
provided by MHM for purposes of this Amendment with an orientation of the
Department's SOP's governing the provision of mental health counseling services
in Department facilities and any other SOP's the Department deems necessary
including, but not limited to, security related SOP's.

         7.       The performance of the mental health counselors provided by
MHM for purposes of this Amendment will be monitored by appropriate Department
personnel for purposes of ensuring that quality mental health counseling
services are being provided to the inmate population in accordance with all
applicable SOP's.

         8.       MHM shall provide the Department with the names, credentials,
and curriculum vitae of all Mental Health Counselors that MHM is considering for
purposes of this Amendment. The Department shall review the qualifications of
all prospective Mental Health Counselors in any manner deemed appropriate by the
Department, including criminal background checks. The Department will notify MHM
in writing whether the Department deems each prospective Mental Health Counselor
as an acceptable candidate for providing mental health counseling services in a
correctional facility. The Department reserves the right to prevent any Mental
Health Counselor it deems unacceptable for providing mental health counseling
services to the inmate population from entering any Department facility.

         9.       All Mental Health Counselors provided by MHM pursuant to this
Amendment shall adhere to the Code of Ethics as set for by the office of the
Georgia Secretary of State.

                                       5
<PAGE>   13
         10.      MHM agrees to require that all Mental Health Counselors
provided pursuant to this Amendment shall maintain for the duration of this
Amendment all licenses, certifications and permits applicable and required for
the provision of counseling services they are providing pursuant to this
Agreement.

         11.      MHM agrees to begin providing Mental Health Counselors at the
facilities noted above for the Department as of July 1, 2000.

Article IV - Utilization Management Program

         1.       MHM agrees to establish and operate within the Department a
Behavioral Health Service Utilization Management Program ("UM Program"). The UM
Program shall be designed to coordinate and make the best use of crisis
stabilization units ("CSU") operated by the Department in all regions, reduce
transportation and overtime costs for security personnel and to reduce the
Department's exposure to liability.

         2.       The general function of the UM program will be to centralize
under one entity the utilization management of designated behavioral health beds
(i.e. CSU's) and to perform certain continued stay and/or discharge screening
procedures.

         3.       MHM shall establish in its Atlanta regional office a Control
Room for the purpose of receiving, displaying, and storing utilization data from
the Department's facilities. The Control Room shall be equipped with a
designated fax machine, desktop computers with internet access and e-mail
capabilities, a filing system, wall-mounted site map identifying all Department
facilities, and telephones with voice mail capability.

         4.       MHM agrees to staff the UM Program with one Registered Nurse
with training and experience in behavioral health utilization management, one
part-time psychiatrist to oversee the clinical aspects of the program and review
the status of active cases on a daily basis, and one clerical support position.
MHM further agrees that the UM Program will be supported by MHM's Vice President
for Clinical Standards and Director of Quality Assurance

         5.       The UM Program will perform the following service utilization
review and management functions on a routine basis:

                  a.       Monitoring of census information for each covered bed
                           each day. To facilitate this function the Department
                           agrees to require its facilities to fax, call or
                           e-mail census information on a daily basis by 9:00
                           a.m.

                                       6
<PAGE>   14

                  The census information to be provided by the Department
                  facilities shall include the inmate's "EF number," admission
                  date, primary diagnosis, discharge criteria and expected
                  length of stay;

         b.       Seven day advance census forecasts for each facility to be
                  calculated by 10:00 a.m. each day;

         c.       New admission reviews to consist of rapid review and to
                  include a determination as to the appropriateness and
                  necessity of new admissions;

         d.       Continued stay reviews to be performed on a daily basis for
                  CSU's;

         e.       Monitoring of high-risk inmates. MHM shall maintain a list of
                  inmates at high-risk for admission. MHM shall also routinely
                  and actively follow-up on the status of high-risk inmates
                  outside of the acute care setting. High-risk inmates are those
                  with two or more CSU admissions in a six month period, and
                  those recently discharged form the CSU with a moderate, or
                  less than moderate, prognosis for successful functioning
                  outside the CSU; and

         f.       Mobilization of the UM team to review current status of all
                  CSU inmates who are within 48 hours of the end of their
                  expected length of stay when the CSU census in one or more
                  regions exceeds 80% occupancy.

    6.   MHM will staff the Control Room during regular business hours (8:00
a.m. to 5:00 p.m.) Monday through Friday. The Control Center staffshall perform
the following functions during regular business hours:

         a.       Monitor CSU census at all times;

         b.       On a daily basis, the UM Program psychiatrist will review
                  the status of each CSU patient and take any necessary
                  follow-up action related to appropriateness and necessity of
                  the admission, reviewing the treatment plan, and making
                  treatment or discharge recommendations;

                                       7
<PAGE>   15
              c.       A daily status report showing the current census of
                       each CSU with 7- day projections will be developed
                       and circulated each morning to the Department's
                       central office Director of Mental Health or the
                       Director's designee;

              d.       Throughout the day, the UM Program nurse will make
                       contact with CSU staff to gather information
                       regarding the status of CSU inmates, review new
                       admissions, and perform continued stay audits; and

              e.       The UM Program nurse shall also monitor census levels
                       at each CSU and issue high census alerts to the
                       Department's central office Director of Mental Health
                       or the Director's designee, when a CSU approaches
                       capacity.

     7.       During off-hours, MHM shall assign an on-call person to handle
Department requests for bed availability or new admission information. Requests
from Department staff during off-hours for bed availability and new admission
information shall be placed to the Control Center voice-mail system. The Control
Center voice-mail system will then forward the voice-mail request to the
appropriate on-call person who will have knowledge of the current bed
availability of each CSU. The on-call person will then respond to the request by
directing the caller to admit the inmate to the nearest available CSU bed. In
low census periods, the Control Center's voice-mail system may inform Department
staff who call the system that beds are available at all CSU's and direct the
caller to proceed with the transfer of the inmate.

     8.       The Department shall pay MHM a monthly program management fee for
the UM Program. Each month's fee shall be in the amount of $16,640.00.

     9.       MHM shall provide the Department with weekly and monthly reports
on utilization of bed space to include the numbers and sources of referrals,
bedspace occupancy, length of stay, trends in utilization and other information
deemed to be relevant by the Department.

     10.      It is understood that MHM's role as to appropriateness and
necessity of admission, length of stay, and similar utilization issues shall be
advisory only with decision making remaining with the clinician responsible for
the inmate's mental health treatment. In this respect, MHM UM Clinicians will
work with both MHM and Department providers in the field to ensure the most
efficient use of CSU beds.

                                       8
<PAGE>   16
     11.      MHM agrees to begin providing the UM Program as described above
for the Department as of July 1, 2000.

Article V - Miscellaneous Provisions

     1.       Except as amended hereby, the parties ratify and confirm the
effectiveness of the terms and conditions of their original Agreement, as
amended.

     2.       This Amendment shall be coterminous with the original agreement,
as amended with the understanding that the Department may terminate this
Amendment when and if the Department determines it is within its best interests
to do so. The Department will provide MHM with 30 days notice of its intent to
terminate this Amendment.

     3.       This Amendment may be executed in multiple counterparts, each of
which shall be an original but all of which shall constitute one agreement. No
party shall be bound by this Amendment until each party has executed it.

         IN WITNESS WHEREOF, the parties have caused their authorized
representatives to execute this Amendment on the day and year first above
written.

GEORGIA DEPARTMENT OF                            MHM CORRECTIONAL SERVICES INC:
CORRECTIONS

BY:       [SIG]                                  BY:        [SIG]
   --------------------------------                   ------------------------
     Commissioner or His Designee

Witness:       [SIG]                             Witness:        [SIG]
        ---------------------------                        --------------------

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]