VA's $422.7M Patient-Centered Community Care Contract Awarded to TriWest Healthcare Alliance

Contract Overview

Contract Amount: $422,701,904 ($422.7M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-10-01

End Date: 2024-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $231.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Healthcare

Official Description: SERVICES FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC).

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $422.7 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: SERVICES FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC). Key points: 1. The contract aims to provide community care services to veterans, enhancing access and choice. 2. TriWest Healthcare Alliance, a significant player in veteran healthcare, is the sole awardee. 3. The fixed-price incentive contract structure aims to balance cost control with service quality. 4. This contract falls within the healthcare sector, specifically focusing on physician office services.

Value Assessment

Rating: good

The contract value of $422.7M over five years suggests a substantial investment in community care. Benchmarking against similar large-scale healthcare service contracts would be necessary for a precise value assessment, but the scale indicates a significant program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process to identify the best value provider. This method generally promotes competitive pricing and innovation.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing competitive pricing for essential veteran healthcare services.

Public Impact

Ensures veterans have access to healthcare services in their communities, potentially reducing wait times and improving convenience. Supports the VA's mission to provide comprehensive care to veterans, leveraging external healthcare providers. The contract's success is tied to the effective coordination between the VA, TriWest, and local healthcare providers. Potential for improved patient outcomes through timely and accessible medical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or unmanaged growth in service demand.
Ensuring consistent quality of care across a wide network of providers.
Managing the administrative complexities of a large-scale community care program.

Positive Signals

Addresses a critical need for veteran healthcare access.
Leverages established provider networks for efficient service delivery.
Utilizes a competitive award process to drive value.

Sector Analysis

This contract operates within the healthcare sector, specifically the provision of physician office services (NAICS 621111). Spending in this area is driven by demand for medical services and government initiatives to expand healthcare access, particularly for veteran populations.

Small Business Impact

While the primary awardee is TriWest Healthcare Alliance Corp, the contract's structure may involve subcontracting opportunities for smaller healthcare providers within the community care network. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure service quality, cost control, and adherence to contract terms, particularly given the scale and importance of veteran healthcare.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for inconsistent quality of care across diverse provider network.
Risk of increased costs if service utilization exceeds projections.
Challenges in coordinating care between VA facilities and community providers.
Dependence on a single large contractor for a critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $422.7 million to TRIWEST HEALTHCARE ALLIANCE CORP. SERVICES FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC).

Who is the contractor on this award?

The obligated recipient is TRIWEST HEALTHCARE ALLIANCE CORP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $422.7 million.

What is the period of performance?

Start: 2019-10-01. End: 2024-09-30.

How does the per-patient cost under this contract compare to the VA's internal care costs or other community care contracts?

A detailed cost-benefit analysis is required to benchmark the per-patient cost against the VA's internal care delivery and similar community care contracts. Factors such as administrative overhead, provider reimbursement rates, and the scope of services covered significantly influence these costs. Understanding these comparisons is vital for assessing the overall value and efficiency of the PC3 contract.

What are the primary risks associated with the fixed-price incentive contract type in this healthcare context?

The primary risks with a fixed-price incentive contract in healthcare include potential for providers to cut corners on quality to maximize profit if targets are too aggressive, or conversely, cost overruns if the initial price estimates are inaccurate. Ensuring clear performance metrics and realistic incentive targets is crucial to mitigate these risks and align provider behavior with patient care quality and cost-effectiveness.

How effectively does this contract facilitate timely access to care for veterans in remote or underserved areas?

The effectiveness of this contract in facilitating timely access hinges on the robustness of TriWest's network in remote and underserved areas. While community care aims to improve access, challenges can arise from provider availability, referral processes, and transportation. Regular performance monitoring and feedback mechanisms are essential to identify and address any gaps in timely care delivery.

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: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 16010 N 28TH AVE, PHOENIX, AZ, 85053

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

Financial Breakdown

Contract Ceiling: $422,701,904

Exercised Options: $422,701,904

Current Obligation: $422,701,904

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline