HHS awarded $26.7M for hospital innovation, with MHA Health Foundation as contractor

Contract Overview

Contract Amount: $26,681,354 ($26.7M)

Contractor: MHA Health Foundation

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-28

End Date: 2020-03-31

Contract Duration: 1,280 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF

Place of Performance

Location: OKEMOS, INGHAM County, MICHIGAN, 48864

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.7 million to MHA HEALTH FOUNDATION for work described as: HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF Key points: 1. Contract value represents a significant investment in healthcare innovation. 2. The contract was awarded through full and open competition, suggesting a robust selection process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (over 3 years) indicates a substantial project scope. 5. The award falls under administrative management and general management consulting services. 6. The contractor, MHA Health Foundation, is a key player in healthcare initiatives.

Value Assessment

Rating: good

The contract value of $26.7 million for a 3-year period appears reasonable for a project focused on hospital innovation. Benchmarking against similar large-scale healthcare innovation grants or contracts would provide a clearer picture of value for money. The firm fixed-price structure is a positive indicator for cost control. Without specific performance metrics or deliverables, a definitive value assessment is challenging, but the investment aligns with government efforts to improve healthcare delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 16 proposals suggests a competitive environment, which typically leads to better pricing and innovative solutions for the government. This level of competition is a strong positive signal for achieving value and ensuring that the selected contractor offers the best overall solution.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Hospitals and healthcare providers participating in the innovation network are direct beneficiaries. The contract aims to deliver improved healthcare practices and patient outcomes. The geographic impact is likely nationwide, focusing on the broader US healthcare system. Workforce implications may include training and adoption of new healthcare management strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if innovation goals are not clearly defined.
Ensuring equitable distribution of innovation benefits across diverse healthcare settings.
Measuring the long-term impact and sustainability of implemented innovations.

Positive Signals

Awarded through full and open competition, indicating a strong selection process.
Firm fixed-price contract type helps control costs.
Contractor has a clear focus on healthcare innovation, aligning with program goals.
Significant investment suggests a commitment to achieving meaningful healthcare improvements.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on administrative and management consulting for innovation. The healthcare sector is a significant area of federal spending, with ongoing efforts to improve efficiency, reduce costs, and enhance patient care. This contract aligns with initiatives aimed at modernizing healthcare delivery through technological and process improvements. Comparable spending benchmarks would involve looking at other large grants or contracts awarded by CMS or HHS for health system transformation.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on securing the best overall solution through open competition. While direct set-aside benefits for small businesses are absent, the contractor may engage small businesses as subcontractors to fulfill specific project needs, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS), a division of HHS. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver defined outcomes within the agreed budget. Transparency is generally maintained through contract award databases and public reporting, though specific project details and performance reviews might be internal. The Inspector General's office for HHS would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Hospital Improvement Innovation Networks (HIINs)
Centers for Medicare & Medicaid Services (CMS) Grants
Healthcare Quality Improvement Programs
Health Information Technology Initiatives

Risk Flags

Potential for low adoption rates of innovations by participating hospitals.
Difficulty in quantifying the long-term impact and ROI of implemented innovations.
Risk of innovations not being sustainable beyond the contract period.
Contractor's ability to effectively manage a diverse network of healthcare providers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.7 million to MHA HEALTH FOUNDATION. HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is MHA HEALTH FOUNDATION.

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 $26.7 million.

What is the period of performance?

Start: 2016-09-28. End: 2020-03-31.

What specific innovations were targeted by this contract, and what were the key performance indicators for success?

The contract aimed to support the Hospital Improvement Innovation Network (HIIN) initiative, which focused on improving the quality, safety, and affordability of healthcare. Key performance indicators likely included reductions in hospital-acquired conditions, improvements in patient safety metrics, and enhanced patient experience scores. While the contract document itself doesn't detail specific innovations, the HIIN program generally encouraged adoption of evidence-based practices, health IT utilization, and patient engagement strategies. The MHA Health Foundation, as the contractor, would have been responsible for guiding participating hospitals in implementing these improvements and tracking progress against established benchmarks.

How does the $26.7 million award compare to other federal investments in healthcare innovation initiatives?

The $26.7 million award for the Hospital Innovation Improvement Network Contract is a substantial but not unprecedented figure for federal healthcare initiatives. Large-scale programs managed by CMS often involve hundreds of millions or even billions of dollars over several years. For instance, grants for Accountable Care Organizations (ACOs) or specific health IT adoption programs have seen significant funding. This contract's value should be viewed in the context of its specific scope: supporting a network of hospitals in adopting innovative practices. Compared to broad research grants or system-wide reform programs, this contract represents a focused investment in operational innovation within existing healthcare structures.

What is the track record of MHA Health Foundation in managing large federal contracts related to healthcare innovation?

MHA Health Foundation, affiliated with the Michigan Health & Hospital Association, has a history of engaging in initiatives aimed at improving healthcare quality and delivery. While specific details on their track record with large federal contracts of this exact nature require deeper investigation into federal procurement databases, their role as a state-level health association suggests experience in program management, stakeholder engagement, and potentially managing grant-funded projects. Their involvement in the HIIN program indicates a capacity to coordinate efforts among multiple healthcare providers towards shared quality improvement goals. Further analysis would involve examining past performance evaluations and contract history.

What were the primary risks identified for this contract, and what mitigation strategies were employed?

Primary risks for a contract focused on healthcare innovation could include the slow adoption of new practices by hospitals, challenges in measuring the impact of innovations, potential for cost overruns if not managed tightly (though mitigated by fixed-price), and ensuring the sustainability of innovations beyond the contract period. The firm fixed-price structure helps mitigate financial risk for the government. The competitive selection process likely vetted the contractor's proposed approach and risk management plan. Success would also depend on the contractor's ability to effectively engage and support participating hospitals, providing technical assistance and fostering collaboration to overcome adoption barriers.

How has spending in administrative management and general management consulting services for healthcare evolved over the past five years?

Federal spending on administrative management and general management consulting services within the healthcare sector has generally seen a steady increase over the past five years, driven by the government's continuous efforts to improve healthcare efficiency, quality, and cost-effectiveness. Agencies like HHS and CMS frequently utilize these services for program management, policy analysis, strategic planning, and the implementation of new healthcare models. The push towards value-based care, health IT integration, and addressing public health challenges necessitates expert consulting. While specific figures fluctuate annually based on budget allocations and emerging priorities, the trend indicates a sustained demand for these specialized services to navigate the complexities of the modern healthcare landscape.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HHSM5002016RFP0026

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2112 UNIVERSITY PARK DR, OKEMOS, MI, 48864

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

Financial Breakdown

Contract Ceiling: $26,681,354

Exercised Options: $26,681,354

Current Obligation: $26,681,354

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline