HHS awards $24.1M contract for outpatient outcome and efficiency measures development

Contract Overview

Contract Amount: $24,097,535 ($24.1M)

Contractor: Yale NEW Haven Health Services Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-09

End Date: 2024-09-04

Contract Duration: 1,822 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: DEVELOPMENT, REEVALUATION, AND IMPLEMENTATION OF OUTPATIENT OUTCOME/EFFICIENCY MEASURES

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06510

State: Connecticut Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.1 million to YALE NEW HAVEN HEALTH SERVICES CORPORATION for work described as: DEVELOPMENT, REEVALUATION, AND IMPLEMENTATION OF OUTPATIENT OUTCOME/EFFICIENCY MEASURES Key points: 1. Contract focuses on critical healthcare quality metrics. 2. Significant duration suggests long-term project needs. 3. Competition level indicates potential for fair pricing. 4. Contract type (Time and Materials) may pose cost control challenges. 5. Geographic concentration in Connecticut noted. 6. Small business participation not explicitly mandated.

Value Assessment

Rating: good

The contract value of $24.1 million over five years for developing and implementing outpatient outcome/efficiency measures appears reasonable given the complexity and duration. Benchmarking against similar large-scale healthcare consulting and data analysis contracts suggests this is within a typical range. The Time and Materials pricing structure, while common for development work, warrants close monitoring to ensure costs remain aligned with project milestones and deliverables. The specific nature of developing outcome measures often involves extensive research, stakeholder engagement, and iterative refinement, justifying the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bids received. This level of competition is generally positive, suggesting that multiple capable vendors were interested and that the government sought the best value. The presence of five bidders implies a healthy market for these specialized services and provides a basis for price negotiation and selection of a vendor with proven expertise. The competitive process likely contributed to achieving a fair market price for the services rendered.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Benefits healthcare providers by offering standardized methods to assess and improve patient care quality. Patients are expected to benefit from improved healthcare outcomes and potentially more efficient service delivery. The development of these measures can influence healthcare policy and reimbursement strategies at a national level. Workforce implications include the need for expertise in health services research, data analytics, and clinical quality improvement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
The long contract duration (5 years) requires sustained oversight to ensure continued relevance and effectiveness of the measures developed.
Reliance on a single contractor for a significant period may limit opportunities for incorporating new approaches or technologies.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract aims to improve healthcare quality, a key public health objective.
The contractor, Yale New Haven Health Services Corporation, likely possesses specialized expertise in healthcare systems and outcomes research.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, specifically focusing on healthcare analytics and quality improvement. The market for developing healthcare outcome measures is driven by regulatory requirements (e.g., from CMS), payer demands, and the ongoing push for value-based care. Comparable spending exists across federal agencies like HHS, VA, and DoD for similar health services research, data analysis, and program evaluation contracts. The size of this contract is substantial, reflecting the complexity and importance of establishing reliable metrics for outpatient care.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. While the primary awardee is a large entity, the contract terms do not preclude subcontracting opportunities. However, without explicit set-aside goals or reporting on subcontracting, the direct impact on the small business ecosystem is not quantifiable from this data alone. Future analysis could explore subcontracting plans and actual performance.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), a division of HHS. CMS Contracting Officers and Technical Representatives are responsible for monitoring performance, approving deliverables, and managing the T&M aspects of the contract to ensure adherence to scope and budget. Transparency is facilitated through contract databases like FPDS. Inspector General oversight is also a standard component of federal contract management, ensuring accountability and preventing fraud, waste, and abuse.

Related Government Programs

Medicare Quality Payment Program
Meaningful Use EHR Incentive Programs
Healthcare Quality Improvement Initiatives
Outpatient Quality Reporting Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for sustained, rigorous oversight over the 5-year contract duration.
Ensuring the developed measures remain relevant and adaptable to evolving healthcare practices.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.1 million to YALE NEW HAVEN HEALTH SERVICES CORPORATION. DEVELOPMENT, REEVALUATION, AND IMPLEMENTATION OF OUTPATIENT OUTCOME/EFFICIENCY MEASURES

Who is the contractor on this award?

The obligated recipient is YALE NEW HAVEN HEALTH SERVICES CORPORATION.

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 $24.1 million.

What is the period of performance?

Start: 2019-09-09. End: 2024-09-04.

What is the track record of Yale New Haven Health Services Corporation in delivering similar outcome measure development contracts?

Yale New Haven Health Services Corporation (YNHHSC) has a significant history of involvement in healthcare research, consulting, and system improvement, often in collaboration with Yale University. While specific details on prior federal contracts for outcome measure development are not immediately available in this summary, YNHHSC's affiliation with a major academic medical center suggests deep expertise in clinical quality, health services research, and data analysis. Their work typically involves complex healthcare systems and patient populations, aligning with the objectives of this contract. Further investigation into their past performance on government contracts, particularly those related to quality measurement and reporting, would provide a more definitive assessment of their track record for this specific task.

How does the $24.1 million contract value compare to other federal investments in healthcare quality measurement?

The $24.1 million contract value for developing and implementing outpatient outcome/efficiency measures is substantial but falls within the expected range for large-scale, multi-year federal health initiatives. Federal agencies, particularly CMS, invest heavily in quality measurement systems to drive improvements in healthcare delivery and patient outcomes. For context, other major federal programs related to quality reporting, electronic health records (EHR) meaningful use, and value-based purchasing have involved hundreds of millions, and sometimes billions, of dollars over their lifecycles. This specific contract's value reflects the complexity of defining, validating, and implementing robust measures across diverse outpatient settings, requiring significant research, data infrastructure, and stakeholder engagement.

What are the primary risks associated with a Time and Materials (T&M) contract for developing outcome measures?

The primary risk with a Time and Materials (T&M) contract, like this one, is the potential for cost overruns if not managed stringently. Unlike fixed-price contracts, T&M agreements compensate the contractor for the actual labor hours and material costs incurred. This can lead to increased costs if the project scope expands, timelines are extended, or if contractor efficiency is low. For outcome measure development, risks include the inherent uncertainties in research and development, potential scope creep as new insights emerge, and the need for extensive collaboration, all of which can drive up hours. Effective oversight, clear task definitions, and regular performance reviews are crucial to mitigate these risks and ensure the project stays within budget.

What is the expected impact of these outcome measures on patient care and healthcare costs?

The development of standardized outpatient outcome and efficiency measures is intended to drive significant improvements in patient care and potentially reduce healthcare costs. By providing clear metrics, these measures enable providers to identify areas for improvement, benchmark their performance against peers, and focus on delivering higher quality, more efficient care. This can lead to better patient outcomes, reduced complications, fewer unnecessary procedures, and improved patient satisfaction. For healthcare costs, the focus on efficiency and value-based care aims to curb unnecessary spending and incentivize providers to deliver the most effective treatments. Ultimately, well-designed measures should align provider incentives with patient well-being and fiscal sustainability.

How has federal spending on healthcare quality improvement initiatives evolved over the past decade?

Federal spending on healthcare quality improvement initiatives has seen a significant and sustained increase over the past decade, driven by legislative mandates and a growing emphasis on value-based care. Key drivers include the Affordable Care Act (ACA), which introduced numerous programs aimed at linking payment to quality outcomes, and the ongoing efforts by CMS to refine and expand quality reporting requirements. Spending has been directed towards developing and implementing quality measures, supporting health information technology adoption (like EHRs), incentivizing providers through programs like the Merit-based Incentive Payment System (MIPS), and funding research into best practices. This contract for outpatient outcome measures is a direct reflection of this sustained federal commitment to improving the quality and efficiency of healthcare delivery.

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: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 789 HOWARD AVE, NEW HAVEN, CT, 06519

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

Financial Breakdown

Contract Ceiling: $24,352,537

Exercised Options: $24,097,535

Current Obligation: $24,097,535

Actual Outlays: $15,174,947

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75FCMC18D0042

IDV Type: IDC

Timeline