DOH23-046 RFI Addendum QAs.pdf

Mission:

To protect, promote and improve the health of all people in Florida through integrated state, county and community efforts.

Ron DeSantis Governor

Joseph A. Ladapo, MD, PhD

State Surgeon General

Vision: To be the Healthiest State in the Nation

Florida Department of Health Division of Administration • Bureau of General Services 4052 Bald Cypress Way, Bin B-07 • Tallahassee, FL 32399

PHONE: 850-245-4199

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Addendum 1 Questions and Answers

RFI DOH23-046

HCIP Loan Program Fianancial Administrator

DATE: 05/15/2024

TO: Prospective Vendors

FROM: Summer Lindsley, Procurement Officer

Florida Department of Health Central Purchasing Office

SUBJECT: Addendum 1

The purpose of this addendum is to answer questions received in accordance with Section VIII, Questions, of the Request for Information (RFI). Please see the Department’s response to questions below.

A. Responses to Questions received pursuant to Section VIII, Questions: Please see the

Department’s response to questions received by the due date outlined in Section VIII, Questions of the RFI, below:

Addendum 1 Questions and Answers

# Question Answer

If this RFI greenlights a solicitation, what is the estimated timeframe for procurement? Thanks in advance, I appreciate any information you can provide.

While the Department is still in the process of determining whether this RFI will lead to a solicitation, we anticipate that if it proceeds, procurement activities would align with the 2024-2025 Fiscal Year appropriations.

Does the state have any specific desired budget breakdown format?

The Department is seeking the expertise of vendors with previous experience in managing similar loan programs and would defer to vendors to propose their optimal budget breakdown formats. While no specific format is mandated, we would expect proposals to include a breakdown both non-recurring and recurring costs, a breakdown of implementation costs, ongoing operational and maintenance cost, and the cost of any service level agreement.

Does the state have any estimates on application volume?

The Department is actively gathering insights into the Health Care Innovation landscape to better understand scope and volume of potential projects. At present, specific estimates on application volume are unavailable. Notably, loan amounts are capped at $5,000,000, not to exceed 50% of a project's total cost.

Will there be any minimum requested loan amount? Chapter 2024-16 establishes a maximum loan amount of $5,000,000, with requested amounts not to exceed 50% of a project's total cost.

However, the Department lacks specific information or recommendations regarding minimum loan amounts. We will depend on proposals from prospective loan administrators to guide us in determining any necessary minimum loan amounts for effective loan administration.

Will the state approve a loan application scoring system?

Yes, according to Chapter 2024-16, the Health Care Innovation Councils will recommend loan awarding criteria to the Department. These criteria will inform our review process for loan applications. We anticipate developing a scoring system based on these criteria to aid in the review process. We are looking for recommendations for criteria to develop an instrument which will guideboth the Councils' recommendations and the Departments initial review of loan applications.

Addendum 1 Questions and Answers

# Question Answer

Please discuss the state’s anticipated role in the approval process for each loan.

According to Chapter 2024-16, the Department is responsible for the initial review of loan applications upon receipt, ensuring completeness, and evaluating the applicant's ability to repay the loan. Subsequently, within 30 days after the application period closes, the Department will forward all completed applications to the Council for further consideration.

The Council will review these applications based on criteria established by the Department and in accordance with prescribed processes and formats. Following this review, the Council will submit lists of recommended applicants for funding to the Department for final approval.

According to Senate Bill 7718, Section 3. (3), “Each year, beginning in the 2024-2025 fiscal year through the 2033-2034 fiscal year, the nonrecurring sum of $50 million is appropriated from the Grant and Donation Trust Fund to the Department of Health for revolving loan fund." Will an additional $50M be appropriated each year?

The Department acknowledges the legislative intent outlined in Senate Bill 7018, Section 3. (3), to annually appropriate $50 million to the Department of Health for the revolving loan fund. This appropriation is anticipated to span from the 2024-2025 fiscal year through the 2033- 2034 fiscal year, with the program sunsetting in 2043.

Note: Florida Supreme Court Case, Florida Senate v. Florida Public Employees Council, 79 AFSCME (Fla. 2002), the Legislature, including each of its houses, retains sole authority over its procedures.

Consequently, one Legislature cannot bind a future Legislature, especially concerning discretionary legislative functions. Therefore, while the intent may be for annual appropriations, the actual decision rests with the legislature and is subject to annual appropriations.

Does the state anticipate credit worthiness of a provider to be a factor in evaluating applications?

Yes, along with any additional recommended criteria from potential administratiors related to borrowers demonstrating their ability to repay the loans.

What is the projected loan volume for the term? (volume each year, and for years 1-5?)

See response # 2 above: The Department is seeking the expertise of vendors with previous experience in managing similar loan programs and would defer to vendors to propose their optimal budget breakdown formats. While no specific format is mandated, it's important to note that resources for administration were specifically allocated under Chapter 2024-16 for this new program. Proposals are expected to align with program objectives and consider these resources carefully.