HHS Awards $24M for Medical Malpractice Claims Review and Risk Management to Keystone Peer Review Organization
Contract Overview
Contract Amount: $23,961,110 ($24.0M)
Contractor: Keystone Peer Review Organization, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-09-26
End Date: 2020-09-25
Contract Duration: 1,826 days
Daily Burn Rate: $13.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: IGF::OT::IGF HEALTH CENTERS AND FREE CLINICS FTCA MEDICAL MALPRACTICE PROGRAMS MEDICAL CLAIMS REVIEW AND RISK MANAGEMENT CONTRACT
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17111
Plain-Language Summary
Department of Health and Human Services obligated $24.0 million to KEYSTONE PEER REVIEW ORGANIZATION, LLC for work described as: IGF::OT::IGF HEALTH CENTERS AND FREE CLINICS FTCA MEDICAL MALPRACTICE PROGRAMS MEDICAL CLAIMS REVIEW AND RISK MANAGEMENT CONTRACT Key points: 1. Contract focuses on critical medical malpractice claims review and risk management for health centers. 2. Keystone Peer Review Organization, LLC, a single entity, holds the contract. 3. The contract spans five years, indicating a long-term need for these services. 4. Administrative Management and General Management Consulting Services are the primary NAICS code.
Value Assessment
Rating: good
The contract value of $23.96M over five years suggests a reasonable annual spend for specialized risk management services. Benchmarking against similar contracts for medical malpractice review and risk management would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and identify the most capable vendor.
Taxpayer Impact: The contract supports essential risk management for health centers, potentially reducing malpractice payouts and improving patient safety, thus benefiting taxpayers through efficient healthcare system operation.
Public Impact
Ensures quality of care and patient safety by reviewing medical malpractice claims. Supports federally funded health centers and free clinics in managing liability risks. Contributes to the stability and operational efficiency of critical healthcare infrastructure. Provides valuable data for risk mitigation strategies within the healthcare sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to long contract duration.
- Reliance on a single entity for critical risk management functions.
Positive Signals
- Full and open competition promotes fair pricing.
- Long-term contract ensures continuity of essential services.
- Focus on risk management can lead to cost savings.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on administrative and management consulting services related to medical malpractice. Spending benchmarks for similar risk management and claims review contracts within federal health programs would be relevant for comparison.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract is managed by the Health Resources and Services Administration (HRSA), an agency within HHS. Oversight would involve monitoring performance, adherence to contract terms, and ensuring the effectiveness of the risk management services provided.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Health Resources and Services Administration Programs
Risk Flags
- Long contract duration may limit flexibility.
- Dependence on a single vendor for critical services.
- Need for clear performance metrics to ensure effectiveness.
- Potential for scope creep if not managed tightly.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.0 million to KEYSTONE PEER REVIEW ORGANIZATION, LLC. IGF::OT::IGF HEALTH CENTERS AND FREE CLINICS FTCA MEDICAL MALPRACTICE PROGRAMS MEDICAL CLAIMS REVIEW AND RISK MANAGEMENT CONTRACT
Who is the contractor on this award?
The obligated recipient is KEYSTONE PEER REVIEW ORGANIZATION, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $24.0 million.
What is the period of performance?
Start: 2015-09-26. End: 2020-09-25.
What is the specific methodology used by Keystone Peer Review Organization for medical claims review and risk management, and how does it align with best practices?
The contract details likely outline the specific methodologies. Generally, such reviews involve analyzing medical records, identifying potential deviations from standards of care, and assessing liability. Risk management strategies often include provider education, policy development, and claims trend analysis to prevent future incidents. Alignment with best practices would be assessed through performance metrics and periodic reviews by HRSA.
How effectively has Keystone Peer Review Organization managed medical malpractice risks and claims over the contract period, and what has been the impact on associated costs?
Effectiveness would be measured by metrics such as the reduction in malpractice claims, the average cost per claim, and the successful implementation of risk mitigation strategies. HRSA's performance evaluations and any reports on claims data would provide insights into the contractor's impact on costs and overall risk reduction for the supported health centers.
What is the potential for cost savings or improved patient outcomes resulting from this contract, and how are these benefits quantified?
Cost savings can be realized through reduced litigation expenses, lower settlement amounts, and fewer costly medical errors. Improved patient outcomes are a direct result of enhanced risk management, leading to safer care. Quantification would involve tracking claim frequency and severity, comparing pre- and post-contract data, and assessing the implementation of preventative measures recommended by the contractor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management 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: TFTPMC000874B
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pennsylvania Medical Society
Address: 777 E PARK DR, HARRISBURG, PA, 17111
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,083,626
Exercised Options: $23,961,110
Current Obligation: $23,961,110
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0325L
IDV Type: FSS
Timeline
Start Date: 2015-09-26
Current End Date: 2020-09-25
Potential End Date: 2020-09-25 00:00:00
Last Modified: 2022-07-11
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