PRTF Rate Model and Value Based Purchasing (VBP)

The North Dakota Department of Health and Human Services Medical Services Division is seeking a consultant to develop a comprehensive rate model for Psychiatric Residential Treatment Facilities (PRTF) through Request for Proposal (RFP) 325-25-415-054. The project aims to create a value-based purchasing (VBP) rate structure that includes quality metrics, claims analysis, and alternative payment methodologies for the state's six existing PRTF facilities. The selected consultant will be required to have a minimum of five consecutive years of experience in rate analysis and consulting, and will be responsible for analyzing provider costs, assessing PRTF service outcomes, and developing recommendations for potential changes to North Dakota Administrative Code (NDAC) and North Dakota Century Code (NDCC). The project requires developing a comprehensive work plan, facilitating stakeholder meetings, and delivering a final report by April 30, 2026. The evaluation process will utilize a 100-point scoring system, with points allocated as follows: Understanding of Scope of Work (30 points), Management Plan (25 points), Experience and Qualifications (25 points), and Cost Proposal (20 points). The RFP was posted on July 28, 2025, with proposals due by August 22, 2025, and the contract period running from October 1, 2025, through December 31, 2026, with a potential 12-month extension option.

The RFP does not explicitly mention specific set-aside designations or restrictions on responding organizations. However, the evaluation criteria do indicate a preference for resident North Dakota vendors in the event of tied scores. The contract is structured as a firm fixed-price agreement, with the total payment not to exceed an unspecified amount. The successful vendor must provide comprehensive insurance coverage, including commercial general liability insurance with minimum limits of $2,000,000 per occurrence, automobile liability insurance, workers' compensation coverage, and employer's liability insurance. The vendor will be responsible for providing their own office equipment and resources to complete the project, with no workspace provided by the state. Additionally, the contract includes a Business Associate Agreement that outlines strict requirements for handling Protected Health Information (PHI) in compliance with HIPAA Rules, including mandatory reporting of any security incidents or breaches within 10 business days. The sample Purchase of Service Agreement indicates that monthly payment requests will be submitted using form SFN 1763 or another required form, with the contract governed by North Dakota law and subject to potential termination for cause.