HHS awards $19M for inpatient value, incentives, and quality reporting outreach and education support

Contract Overview

Contract Amount: $18,986,468 ($19.0M)

Contractor: Health Services Advisory Group, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-06-16

End Date: 2023-06-15

Contract Duration: 1,460 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: INPATIENT VALUE, INCENTIVES, AND QUALITY REPORTING OUTREACH AND EDUCATION SUPPORT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.0 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: INPATIENT VALUE, INCENTIVES, AND QUALITY REPORTING OUTREACH AND EDUCATION SUPPORT Key points: 1. Contract provides essential support for critical healthcare quality initiatives. 2. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 3. The duration of the contract indicates a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability. 5. The geographic scope appears to be national, given the nature of the services. 6. This contract supports the Centers for Medicare and Medicaid Services' mission to improve healthcare quality.

Value Assessment

Rating: good

The contract value of $18.99 million over approximately four years for outreach and education support for inpatient value, incentives, and quality reporting appears reasonable. Benchmarking against similar contracts for large-scale federal outreach and technical consulting services suggests that this pricing is within an expected range. The specific services, which involve complex policy dissemination and stakeholder engagement, justify the investment. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair market assessment and allows the government to select the best value offer. The specific details of the bidding process and evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a transparent and competitive process, which is intended to secure the best possible price and quality for the services rendered.

Public Impact

Healthcare providers, including hospitals and other inpatient facilities, will benefit from improved outreach and education on value-based purchasing, incentive programs, and quality reporting requirements. The services delivered will enhance understanding and compliance with CMS regulations, ultimately aiming to improve the quality and efficiency of inpatient care nationwide. The geographic impact is national, as the outreach and education efforts are intended to reach healthcare entities across the United States. The contract supports a workforce involved in healthcare policy, education, and consulting, potentially including subject matter experts and communication specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely managed.
Ensuring consistent quality and effectiveness of outreach across diverse healthcare provider types and geographic regions.
Measuring the direct impact of outreach and education on provider behavior and quality outcomes can be challenging.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Contract duration suggests a sustained commitment to improving healthcare quality reporting and value-based initiatives.
Support for critical CMS programs aimed at enhancing patient care and healthcare system efficiency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and scientific consulting related to healthcare. The market for such services is substantial, driven by the government's continuous need to implement and communicate complex healthcare policies and programs. Comparable spending in this area often involves significant investments in outreach, education, and technical assistance to ensure widespread adoption and compliance with federal regulations. The contract's focus on value-based care and quality reporting aligns with major trends in healthcare reform.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Health Services Advisory Group, Inc., a single entity, suggests that the scope of work was likely considered too large or specialized for a small business set-aside. This means that the direct economic impact on the small business ecosystem from this specific contract is minimal, although the prime contractor may engage small businesses as subcontractors if their internal capabilities are insufficient.

Oversight & Accountability

Oversight for this contract is primarily managed by the Centers for Medicare and Medicaid Services (CMS), the contracting agency. As a Time and Materials contract, rigorous monitoring of labor hours and costs will be crucial to ensure adherence to the contract ceiling and prevent cost overruns. CMS likely has established performance metrics and reporting requirements to assess the effectiveness of the outreach and education efforts. Transparency is facilitated through the federal procurement data system, where contract awards are publicly documented. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Medicare Quality Payment Program
Hospital Value-Based Purchasing Program
Meaningful Use Program (now Promoting Interoperability)
Healthcare Quality and Research Support Services

Risk Flags

Potential for cost creep due to Time and Materials contract type.
Difficulty in quantifying direct impact of outreach and education on provider behavior.
Ensuring consistent service quality across a national provider base.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.0 million to HEALTH SERVICES ADVISORY GROUP, INC.. INPATIENT VALUE, INCENTIVES, AND QUALITY REPORTING OUTREACH AND EDUCATION SUPPORT

Who is the contractor on this award?

The obligated recipient is HEALTH SERVICES ADVISORY GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2019-06-16. End: 2023-06-15.

What is the track record of Health Services Advisory Group, Inc. in performing similar federal contracts, particularly those related to healthcare outreach and education?

Health Services Advisory Group, Inc. (HSAG) has a significant history of performing contracts for federal agencies, including the Centers for Medicare and Medicaid Services (CMS). Their expertise often lies in quality improvement, data analysis, and providing technical assistance to healthcare providers. For instance, HSAG has been involved in various quality initiatives, such as the Medicare Quality Improvement Organization (QIO) program, which requires extensive outreach and education to healthcare facilities. Their experience in managing large-scale, complex projects involving stakeholder engagement and regulatory compliance suggests a strong capability to execute the requirements of this contract. Publicly available contract data and performance reviews would offer more granular insights into their specific performance on past projects, including adherence to timelines, budget management, and client satisfaction.

How does the awarded amount of approximately $19 million compare to similar federal contracts for healthcare outreach and education services?

The awarded amount of approximately $19 million for a four-year contract (June 2019 - June 2023) for inpatient value, incentives, and quality reporting outreach and education support is within a reasonable range for large-scale federal initiatives of this nature. Contracts supporting CMS programs often involve national scope, extensive stakeholder engagement, and the dissemination of complex policy information, which necessitates significant resources. For example, contracts for managing national quality reporting programs or providing technical assistance to a broad base of healthcare providers can easily reach multi-million dollar figures over several years. The specific nature of 'outreach and education support' can vary, but given the complexity of value-based purchasing and incentive programs, this investment appears commensurate with the expected deliverables and the broad impact intended.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, challenges in measuring the effectiveness and impact of outreach and education efforts, and ensuring consistent quality of service delivery across diverse healthcare settings nationwide. Mitigation strategies likely involve robust oversight by CMS, including detailed review of contractor invoices, regular performance reviews against defined metrics, and clear communication channels to address issues promptly. To measure impact, CMS may require specific reporting on provider engagement, understanding, and potentially changes in reported quality metrics. Ensuring consistent quality would necessitate well-defined service standards, quality assurance processes within the contractor's organization, and potentially site visits or audits by CMS.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting, as it maximizes the pool of potential bidders and encourages competitive pricing. For this contract, awarding it through full and open competition suggests that multiple vendors were able to propose solutions, and the government selected the one offering the best value. The fact that only two bids were received might indicate a niche market or high barriers to entry, which could slightly temper the competitive pressure. However, the process itself provides a baseline for fair pricing and allows for the evaluation of technical merit alongside cost. The ultimate value for money will depend on the contractor's performance and CMS's effective contract management throughout the period of performance.

What are the historical spending patterns for similar outreach and education support services by CMS or other HHS agencies?

Historical spending patterns for similar outreach and education support services by CMS and other HHS agencies reveal a consistent and significant investment in these areas. Agencies like CMS regularly award contracts for disseminating information about new regulations, quality initiatives, and payment models to a vast network of healthcare providers. These contracts often span multiple years and can range from a few million to tens of millions of dollars, depending on the scope, duration, and complexity of the subject matter. For instance, support for programs like the Hospital Value-Based Purchasing (VBP) or the Merit-based Incentive Payment System (MIPS) has historically required substantial funding for educational materials, webinars, technical assistance hotlines, and direct outreach to providers. Spending in this category is driven by the need to ensure compliance, encourage adoption of best practices, and ultimately improve healthcare outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75FCMC18R0019

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3133 EAST CAMELBACK RS STE 100, PHOENIX, AZ, 85016

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $18,986,468

Exercised Options: $18,986,468

Current Obligation: $18,986,468

Actual Outlays: $12,131,059

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75FCMC18D0026

IDV Type: IDC

Timeline