DSHS will hire consultants to see if a hospital tax will pass muster with feds
Posted By Joe Turner on October 20, 2009 at 12:48 pm
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Jason Mercier at the Washington Policy Center brought this one to my attention.
It appears the state Department of Social and Health Services is going to hire a company for up to $200,000 to determine the impacts of a tax on the hospital system. (Maybe it's a tax that would be levied only on hospitals. I can't tell yet. But it's got a great-sounding name: Hospital Safety-Net Tax.
Navigant Consulting, Inc. of Seattle gets the contract. Generally, "sole source" means that the company that is being hired is the only one qualified to do the kind of work that is being called for.
UPDATE (3:02 p.m.): Doug Porter, assistant secretary for DSHS, called to explain what's happening. The hospital association, whose members are getting reimbursed 4 percent less this year because of state budget cuts, have approached the state with a proposal to have themselves taxed more. Their proposal is similar to the nursing home bed tax of a couple years back. Hospitals would pay a tax, but after they are reimbursed with state and federal funds, they come out ahead, at no additional cost to the state. Porter said the consultants are being hired to evaluate the hospitals proposal and see if it will work and pass muster with the feds who oversee the use of Medicaid funds.
The tax would be only on hospitals to benefit hospital, Porter said. And Navigant has done work for DSHS before on the state reimbursement rates and procedures so they have a leg up, he said.
Unlike nursing homes and others, the hospitals have not sued the state over cuts to their reimbursement rates, he said, and this proposal could head off such a court challenge.
Sole Source
LEGAL NOTICE
The Department of Social and Health Services (DSHS), Health and Recovery Services Administration (HRSA), intends to award a sole source contract to Navigant Consulting Inc., Seattle, for the purpose of assessing the feasibility and hospital industry impacts of a Hospital Safety-Net Tax proposal (Tax Proposal) and make recommendations to DSHS that may be presented for legislative consideration. This project will require that the contractor statistically analyze the Tax Proposal in the context of Washington’s hospital payment systems and underlying State and federal laws and regulations. The Contractor must have an extensive working familiarity with hospital payment methodologies, including Disproportionate Share Hospital (DSH) and Certified Public Expenditure (CPE) programs, used by DSHS/HRSA, private insurers operating within Washington State, and those employed by Medicare, and have assisted other state governments analyze and/or develop similar Tax Proposals.The period of performance is scheduled for November, 2009 through June 30, 2010. The maximum funding available for this contract is $ 200,000.
Those who believe they possess the necessary qualifications, and can perform the stated functions in a timely manner, are required to submit a written capability statement within five (5) business days of this announcement. The statement must detail the applicant’s ability to provide these services. In the absence of other qualified sources, it is DSHS’ intent to make a sole source award of this contract.
Please submit capability statements to:
Angie Williams, Contracts Consultant
Central Contract Services
P.O. Box 45811
Olympia, WA 98504-5811
FAX: (360) 664-6184
Add antoher $200,000 to the budget woes. Does DSHS even have authority to do this since the tax would go directly back to the hospital groups and not the citizens?