HHS awards $16.4M for emergency services at Pine Ridge Hospital, serving South Dakota's tribal communities

Contract Overview

Contract Amount: $16,385,737 ($16.4M)

Contractor: Tribal Health, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PINE RIDGE HOSPITAL - EMERGENCY DEPARTMENT SERVICES

Place of Performance

Location: PINE RIDGE, SHANNON County, SOUTH DAKOTA, 57770

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.4 million to TRIBAL HEALTH, LLC for work described as: PINE RIDGE HOSPITAL - EMERGENCY DEPARTMENT SERVICES Key points: 1. Contract value represents a significant investment in critical healthcare infrastructure for a vulnerable population. 2. Competition dynamics suggest a potentially competitive bidding process for essential medical services. 3. Performance risk is moderate, given the critical nature of emergency services and potential for unforeseen medical needs. 4. This contract supports the Indian Health Service's mission to provide comprehensive health services to American Indians and Alaska Natives. 5. The award is positioned within the healthcare sector, specifically focusing on direct patient care services.

Value Assessment

Rating: good

The contract value of $16.4 million for one year of emergency department services appears reasonable given the critical need and specialized nature of care for the Pine Ridge service area. Benchmarking against similar contracts for tribal health facilities or rural emergency services would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests a degree of cost certainty for the government, assuming the scope of services is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach is generally favored as it promotes a wider range of potential solutions and can drive down prices through market forces. The number of bidders is not specified, but the open competition suggests a healthy level of interest in providing these essential services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for emergency medical services, ensuring federal funds are used efficiently.

Public Impact

The primary beneficiaries are the residents of the Pine Ridge Indian Reservation and surrounding areas, who will receive critical emergency medical care. The contract ensures the continued operation and staffing of the emergency department at Pine Ridge Hospital. Geographic impact is concentrated in South Dakota, specifically serving the Oglala Lakota County and surrounding tribal lands. Workforce implications include the employment of medical professionals, nurses, technicians, and support staff at the hospital.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of care in a high-demand emergency setting.
Managing potential fluctuations in patient volume and acuity.
Maintaining adequate staffing levels with specialized medical personnel.
Coordination of care with other healthcare providers in the region.
Compliance with all federal healthcare regulations and standards.

Positive Signals

Commitment to serving a critical healthcare need for an underserved population.
The use of a firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting a competitive market for these services.
Supports the ongoing mission of the Indian Health Service.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on emergency medical care. The market for providing such services to tribal health organizations is specialized, often involving a mix of government contracts and private healthcare providers. Comparable spending benchmarks would typically involve analyzing per diem rates for emergency services in similar rural or reservation-based hospitals, adjusted for regional cost of living and service scope. The overall federal spending in healthcare services is vast, with IHS contracts representing a crucial component for specific populations.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is unlikely to have been exclusively set aside for small businesses. Further analysis would be needed to determine if small businesses are involved as subcontractors or suppliers to the prime contractor, TRIBAL HEALTH, LLC.

Oversight & Accountability

Oversight for this contract will likely be managed by the Indian Health Service (IHS) within the Department of Health and Human Services. Accountability measures would include performance monitoring against contract requirements, quality assurance reviews, and financial audits. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Indian Health Service Contracts
Rural Healthcare Services
Emergency Medical Services
Tribal Health Programs
Department of Health and Human Services Grants and Contracts

Risk Flags

Potential for cost overruns if patient volume significantly exceeds projections (mitigated by FFP structure).
Ensuring consistent quality of care and patient safety in a critical service area.
Contractor's ability to maintain adequate and qualified staffing levels.
Dependence on a single contractor for essential emergency services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.4 million to TRIBAL HEALTH, LLC. PINE RIDGE HOSPITAL - EMERGENCY DEPARTMENT SERVICES

Who is the contractor on this award?

The obligated recipient is TRIBAL HEALTH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the historical spending pattern for emergency department services at Pine Ridge Hospital?

Analyzing historical spending for emergency department services at Pine Ridge Hospital requires access to past contract awards and modifications. Without specific historical data, it's difficult to establish a precise spending trend. However, the current award of $16.4 million for a 364-day period suggests a significant and ongoing need for these services. If previous contracts were for similar durations and scopes, one might infer a consistent annual expenditure in this range. Fluctuations could occur due to changes in patient volume, service scope, or inflationary pressures. A detailed review of prior years' awards would be necessary to confirm any patterns or deviations.

How does the per-unit cost of services under this contract compare to national benchmarks for emergency departments?

Determining a precise per-unit cost is challenging without knowing the volume of services (e.g., patient visits, procedures) anticipated under this contract. The contract is a firm-fixed-price award for overall emergency department services, not itemized per service. To compare with national benchmarks, one would need to estimate the expected number of patient encounters and then divide the total contract value by that estimate. National benchmarks for emergency department visits vary widely based on facility type (e.g., rural vs. urban, trauma level) and acuity of cases. Generally, rural and tribal facilities may have different cost structures. A preliminary assessment suggests the contract value is substantial, reflecting the critical and potentially high-cost nature of emergency care in a remote area.

What is the track record of TRIBAL HEALTH, LLC in managing similar healthcare contracts?

Information regarding the specific track record of TRIBAL HEALTH, LLC in managing similar healthcare contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on federal contracts, particularly those involving emergency services, tribal health, or IHS facilities. Key indicators to examine would include on-time delivery, quality of services, adherence to budget (if applicable), and any past performance issues or awards. Without this specific performance history, it's difficult to definitively assess their capability and reliability for this particular contract.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include ensuring the consistent delivery of high-quality emergency care, managing unpredictable patient volumes and acuity, maintaining adequate staffing of qualified medical professionals, and potential coordination challenges with other healthcare providers. Mitigation strategies likely involve the firm-fixed-price structure which incentivizes efficient service delivery, performance standards outlined in the contract, and the contractor's own internal quality control and staffing protocols. The IHS also provides oversight. The full and open competition may also mitigate risk by ensuring a capable provider is selected.

How does this contract align with the broader goals and mission of the Indian Health Service?

This contract directly aligns with the core mission of the Indian Health Service (IHS), which is to raise the physical, mental, social, and spiritual health of American Indians and Alaska Natives to the highest possible level. By funding emergency department services at Pine Ridge Hospital, the contract ensures that a critical healthcare need for the local tribal community is met. This supports the IHS's commitment to providing comprehensive healthcare services, particularly in underserved areas where access to specialized medical care can be limited. The award contributes to the IHS's objective of improving health outcomes and reducing health disparities among the populations it serves.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14614 N KIERLAND BLVD STE 120, SCOTTSDALE, AZ, 85254

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

Financial Breakdown

Contract Ceiling: $16,385,737

Exercised Options: $16,385,737

Current Obligation: $16,385,737

Actual Outlays: $7,446,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70624D00005

IDV Type: IDC

Timeline