Wellpath award letter and synopsis.docx

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Attached to
Notice of intent to Award RFP 491 190000000546
Solicitation number
NIA1-491-190000000402-1
Issued by
Michigan

About this file

This is an award recommendation document from the Michigan Department of Health and Human Services (MDHHS) for Hospital and Healthcare Services for the Center for Forensic Psychiatry (CFP). The Request for Proposal (RFP) No. 190000000546 was posted on SIGMA VSS on December 20, 2018, with proposals due by January 17, 2019. The contract term is one year, with up to four one-year renewal options. Only one bidder, Wellpath, submitted a proposal, which was evaluated by a Joint Evaluation Committee consisting of three MDHHS representatives.

Wellpath was recommended for award at $2,000,000, scoring 98 out of 100 points in the technical evaluation. The pricing structure involves a 12.5% discount on standard hospital rates for inpatient and outpatient facility and physician services, applicable only to participating network providers. Services by non-participating providers will be invoiced at full rate. There are no administrative fees or start-up costs. Third-party insurance considerations are outlined, with a 12.5% discount applied if no insurance payment is received for participating providers. The award is pending State Administrative Board approval and represents the best value to the State of Michigan based on the proposal's technical merits and pricing.

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STATE OF MICHIGAN PROCUREMENT

Michigan Department of Health and Human Services
235 S. Grand Avenue, Suite 1201, Lansing, MI 48933
PO Box 30037, Lansing, MI 48909

Award Recommendation

The Department of Health and Human Services’ Procurement office has completed the evaluation of Hospital and Healthcare Services for the Center for Forensic Psychiatry (CFP), Request for Proposal No. 190000000546 and has recommended an award to Wellpath in the amount of $2,00,000.00, pending State Administrative Board approval. More information on the State Administrative Board can be found at: https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48756---,00.html.

Background Information:

This Request for Proposal (RFP) was to solicit responses for selection of a Contractor to provide Hospital and Healthcare Services for the CFP. The term of this contract is one year, with up to four one-year renewal options.

Bidders:

The RFP was posted on SIGMA VSS on December 20, 2018 for four weeks. The following bidders submitted proposals by the published due date of January 17, 2019.

Bidder
Address

City, State Zip

SDVOB*

Wellpath

1283 Murfreesboro road, Suite 500, Nashville, NI 37217
N/A

*SDVOB: Service-Disabled Veteran Owned Business

Version 2 Revised: 2/2019 Version 2 Revised: 2/2019 Evaluation Synopsis I. Evaluation Process A Responsible Vendor is a vendor that demonstrates it has the ability to successfully perform the duties identified by the solicitation. A Responsive proposal is one that is submitted in accordance with the solicitation instructions and meets all mandatory requirements identified in the solicitation.

Solicitation Instructions and Vendor Questions, Section 7, Mandatory Minimum Requirements:

It is required that the local healthcare providers are accredited by The Joint Commission (TJC) and Center for Medicare and Medicaid Services (CMS), and physicians providing direct healthcare services to CFP patients be privileged by the healthcare provider.

Solicitation Instructions, Section 8, Evaluation Process.

Technical Evaluation Criteria
Weight
1.
Schedule A, Statement of Work, Sections 1-3
40
2.
Schedule A, Statement of Work, Sections 4-9
40
3.
Vendor Questions Worksheet
20
Total
100

The full evaluation process is stated in the RFP Proposal Instructions.

II. Evaluation Method Responses to this solicitation were reviewed by a Joint Evaluation Committee, which consisted of the following individuals:

Voting

Kimberly Kulp, MD, Acting Psychiatry Director

MDHHS/CFP

Denise Tadsen, Hospital Services Director

MDHHS/CFP

Nick Norcross, State Assistant Administrator MDHHS/Bureau of Hospitals

III. Evaluation Results The Evaluation Team determined that Wellpath based on a score of 98, did meet the requirements of this RFP. This determination was accomplished by evaluating their responses to the Technical Evaluation Criteria.

1. Schedule A - Statement of Work – Sections 1-3 The Evaluation Team determined that overall the responses were mostly satisfactory, but the following deficiencies were noted:

a. Section 3. Reporting Requirements. Bidder did not include all of the requirements on the example report.

Total Score: 99/100

IV. Technical Evaluation Summary

Selection Criteria
Bidder #1
Bidder #2
Bidder #3
1
Schedule A, Statement of Work, Sections 1-3
39
n/a
n/a
2
Schedule A, Statement of Work, Sections 4-9
40
3
Vendor Questions Worksheet
20
Total
99

V. Pricing Pricing was evaluated for the bidders who passed technical. The following is a summary of their price proposals:

Wellpath will provide all services described within this proposal according to the following discounts on provider billed charges:

Inpatient/Outpatient Services:

Facility Services Inpatient
Standard hospital rate (billed charges) with a 12.5% discount. Only applies to participating providers within network.
Facility Services Outpatient
Standard hospital rate (billed charges) with a 12.5% discount. Only applies to participating providers within network.
Physician Services Inpatient
Standard hospital rate (billed charges) with a 12.5% discount. Only applies to participating providers within network.
Physician Services Outpatient
Standard hospital rate (billed charges) with a 12.5% discount. Only applies to participating providers within network.

· Services provided by Select Specialties will be invoiced with a 12.5% discount.

· Physical Therapy services provided on-site will be invoiced with a 12.5% discount.

· Services provided by non-participating providers will be invoiced to CFP at the full invoiced amount.

Third Party Insurance – Inpatient Services Only

· If no insurance payment received, then the 12.5% discount will apply for participating providers.

· Any Co-Payment amounts, deductibles or other amounts unpaid by insurance will be invoiced directly to CFP with no discounts applied.

Additional Costs

· No Administrative Fee will apply at any time.

· No one-time or start-up costs apply to this proposal.

VI. Award Recommendation:

Award recommendation is made to the responsive and responsible Bidder who offers the best value to the State of Michigan. Best value is based on the proposal meeting the minimum point threshold and offering the best combination of factors stated in Technical Evaluation Criteria, Section 8 Evaluation Process, and price. Wellpath provided the best value to the State. Award Recommendation is made to Wellpath in the amount of $2,000,000.

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