HHS awards $3.56M for anesthesiologist services in New Mexico, highlighting a need for specialized medical personnel

Contract Overview

Contract Amount: $3,563,378 ($3.6M)

Contractor: Medicus Healthcare Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-31

End Date: 2026-05-31

Contract Duration: 1,096 days

Daily Burn Rate: $3.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: CONTRACTOR SHALL PROVIDE ANESTHESIOLOGIST SERVICES

Place of Performance

Location: GALLUP, MCKINLEY County, NEW MEXICO, 87301

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.6 million to MEDICUS HEALTHCARE SOLUTIONS, LLC for work described as: CONTRACTOR SHALL PROVIDE ANESTHESIOLOGIST SERVICES Key points: 1. Value for money appears fair given the specialized nature of anesthesiology services. 2. Competition dynamics indicate a potentially limited market for this specific service in the region. 3. Risk indicators are moderate, primarily related to contractor performance and service continuity. 4. Performance context suggests a focus on ensuring adequate medical staffing for federal facilities. 5. Sector positioning places this contract within the broader healthcare services domain, specifically physician services.

Value Assessment

Rating: fair

The contract value of $3.56 million over approximately three years for anesthesiologist services in New Mexico is difficult to benchmark without more specific data on the number of hours or procedures covered. However, given the high demand and specialized training required for anesthesiologists, the pricing appears to be within a reasonable range for such critical medical support. Comparisons to similar contracts for physician services in other federal facilities or regions would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was considered a smaller procurement. The data indicates 5 bidders participated in the competition. While SAP aims for efficiency, the level of competition under this procedure can vary. The presence of 5 bidders suggests some level of market interest, but it does not necessarily guarantee the most competitive pricing or optimal value compared to a full and open competition.

Taxpayer Impact: The use of SAP and the number of bidders suggest a balance between efficient procurement and ensuring some level of taxpayer value through competition, though the full extent of savings is not quantifiable without further analysis.

Public Impact

Beneficiaries include patients requiring surgical or procedural care at Indian Health Service facilities in New Mexico. Services delivered are critical anesthesiology support, ensuring the safe administration of anesthesia. Geographic impact is focused on New Mexico, addressing a specific need within the state's healthcare infrastructure. Workforce implications involve providing essential medical professionals to federal healthcare facilities, potentially alleviating staffing shortages.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if contractor performance falters.
Reliance on a single contractor for critical medical services can pose continuity risks.
Ensuring consistent quality of care across all anesthesiologist services provided.

Positive Signals

Award to a contractor with experience in providing medical staffing solutions.
Competition among 5 bidders indicates a responsive market for these services.
Contract duration provides a degree of stability for service provision.

Sector Analysis

The healthcare sector, particularly physician services, is a critical component of federal spending. This contract falls under the 'Offices of Physicians (except Mental Health Specialists)' NAICS code, indicating a focus on specialized medical practitioners. The market for anesthesiologists is often characterized by high demand and specialized training requirements, which can influence contract values and competition. Federal agencies frequently contract for physician services to supplement their direct healthcare workforce, especially in remote or underserved areas.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside. The contractor, Medicus Healthcare Solutions, LLC, is a large business. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is unclear, but it does not appear to have been specifically targeted towards small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS) within the Department of Health and Human Services (HHS). The contract is a purchase order, which is a common instrument for acquiring services. Accountability measures would include performance monitoring against the terms of the purchase order, ensuring the delivery of qualified anesthesiologist services. Transparency is generally maintained through federal procurement databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

Physician Services Contracts
Medical Staffing Support
Indian Health Service Contracts
Anesthesiology Services
Healthcare Professional Services

Risk Flags

Potential for service disruption
Contractor performance risk
Reliance on specialized medical personnel

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.6 million to MEDICUS HEALTHCARE SOLUTIONS, LLC. CONTRACTOR SHALL PROVIDE ANESTHESIOLOGIST SERVICES

Who is the contractor on this award?

The obligated recipient is MEDICUS HEALTHCARE SOLUTIONS, 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 $3.6 million.

What is the period of performance?

Start: 2023-05-31. End: 2026-05-31.

What is the typical hourly rate for anesthesiologists working under federal contracts in similar geographic regions?

Determining the precise typical hourly rate for anesthesiologists under federal contracts in New Mexico requires access to detailed contract databases and specific service level agreements. However, general market data suggests that experienced anesthesiologists can command rates ranging from $250 to $500+ per hour, depending on factors such as location, facility type (e.g., hospital vs. clinic), specific procedures, and the level of demand. Federal contracts, especially those competed under SAP, may aim for rates at the lower end of this spectrum to ensure value for taxpayers. Without the specific labor hours or task breakdown from this $3.56 million contract, a direct hourly rate comparison is speculative. Further analysis would involve examining the contract's Statement of Work (SOW) and comparing it to publicly available contract award data for similar physician services.

How does the number of bidders (5) compare to the average number of bidders for similar physician services contracts awarded by the IHS?

The average number of bidders for physician services contracts awarded by the Indian Health Service (IHS) can vary significantly based on the specialty, geographic location, and the procurement method used. For contracts competed under Simplified Acquisition Procedures (SAP), which are typically for amounts under the SAT (currently $250,000, but historically varied), a higher number of bidders might be expected due to lower barriers to entry. However, for highly specialized services like anesthesiology, particularly in specific regions like New Mexico, 5 bidders could represent a healthy level of competition. If this contract exceeded the SAT and was still competed under SAP, it might suggest a more limited pool of qualified providers. A comprehensive comparison would require analyzing historical IHS contract awards for anesthesiology and related physician services to establish a benchmark for bidder participation.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance for these anesthesiologist services?

Key Performance Indicators (KPIs) for anesthesiologist services contracts typically focus on ensuring the safe, effective, and timely delivery of care. Common KPIs include patient outcomes (e.g., complication rates, patient satisfaction), adherence to schedules (e.g., availability of anesthesiologists for scheduled procedures), compliance with clinical protocols and standards of care, and responsiveness to emergent situations. For this specific contract with Medicus Healthcare Solutions, LLC, the Indian Health Service would likely monitor metrics related to the qualifications and credentials of the assigned anesthesiologists, their punctuality, the quality of their documentation, and their overall contribution to the smooth functioning of surgical and procedural services. Performance evaluations would also consider adherence to the terms outlined in the purchase order, including any specific service level agreements.

Has Medicus Healthcare Solutions, LLC had previous performance issues with federal contracts, particularly with the IHS or HHS?

Assessing the past performance of Medicus Healthcare Solutions, LLC requires accessing federal contract databases such as the Federal Awardee Performance and Integrity Information System (FAPIIS) or agency-specific past performance repositories. Without direct access to these systems or specific reports related to this contractor, it is difficult to definitively state whether they have had previous performance issues. Generally, federal agencies conduct pre-award reviews that include assessing a contractor's past performance record. If Medicus Healthcare Solutions has a history of significant performance problems, contract terminations, or unresolved disputes on federal contracts, this could have impacted the evaluation of their bid for this anesthesiologist services contract. A thorough review would involve searching FAPIIS for any documented concerns or positive performance records.

What is the historical spending trend for anesthesiologist services by the Indian Health Service over the last five fiscal years?

Analyzing the historical spending trend for anesthesiologist services by the Indian Health Service (IHS) over the last five fiscal years would reveal patterns in demand and investment in this critical medical specialty. This $3.56 million contract represents a specific investment in New Mexico. To understand the broader trend, one would need to aggregate data on all IHS contracts awarded for anesthesiology services across all its facilities nationwide. This would involve querying federal procurement data for relevant NAICS codes (like 621111) and contract descriptions related to anesthesiology. Observing an increase or decrease in spending could indicate shifts in healthcare needs, staffing challenges, or changes in procurement strategies within the IHS. Such analysis provides context for the current award and helps in forecasting future budgetary requirements.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71023P00030

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 22 ROULSTON RD, WINDHAM, NH, 03087

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: $3,563,378

Exercised Options: $3,563,378

Current Obligation: $3,563,378

Actual Outlays: $3,325,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline