Other firms want in on hospital analysis

Besides The Medical City, two other companies have expressed interest in conducting a healthcare system analysis for the Commonwealth Healthcare Corp., prompting the CNMI government’s decision to open up the procurement process, according to Attorney General Edward T. Buckingham.

Buckingham and press secretary Angel Demapan separately confirmed that the request for proposal to provide a review of the current healthcare system in the CNMI will be advertised today.

As this developed, the Fitial administration also confirmed its plan to extend the emergency declaration for the beleaguered corporation.

Buckingham said the two other companies were already in the picture as negotiations were underway for a memorandum of agreement between TMC and the CNMI through the Office of the Attorney General and the corporation.

The MOA aims to set up protocols for both TMC and the CNMI during the assessment process, including financial expectations.

Buckingham noted that TMC and the CNMI “did not have a meeting of the minds” as discussions progressed. He said the initial idea was for TMC to conduct the six-week assessment for free but later found out that fees will be incurred by the Commonwealth.

“That caused concern for us,” said Buckingham.

The OAG and TMC agreed to establish three different paths to be taken following the six-week assessment period. Buckingham said the CNMI offered the “rate of $150,000 or actual value of the product as determined by the Commonwealth, whichever is less” should TMC’s assessment lead to a product that will be used substantively by the CNMI and a contractor other than TMC.

Margaret A. Bengzon, group head of the Strategic Services Group of TMC, said in a statement that they offered a counterproposal: Instead of $150,000, TMC will be reimbursed for $200,000 plus all out-of-pocket expenses to be incurred during the conduct of the feasibility study.

Bengzon maintained that they added an “incremental amount” to TMC’s fee, given the company’s upfront investment in the study and the implied effective guarantee of its product. It is TMC’s belief, she added, that it would be “more onerous” for the CNMI to work with another group with their product.

She added that TMC is “hard pressed” in the stipulation that would allow the company to be paid even less than $150,000.

“It is unfortunate that we were unable to come to agreement with the leadership of the CNMI and the CHC in this regard. We were so convinced of our ability to support CHC in resolving its operating and organizational challenges, such that we were willing to subsidize the study upfront, and make subsequent investments to enhance CHC’s facilities and services as may be recommended by the study,” said Bengzon.

Opening the procurement process would encourage competition and present the CNMI with the best deal possible, said Buckingham. According to him, that does not necessarily mean the cheapest. It involves a proposal that would create a good quality product with reasonable cost.

The RFP seeks out services of companies “with extensive background in the evaluation of small community healthcare systems for efficiency and effectiveness in meeting community needs.”

These companies should be able to conduct a study focusing on critical elements of healthcare system, areas of service identified as using inappropriate amount of agency resources, areas where significant cost savings can be achieved, areas where revenue enhancement can occur, clinics on the islands of Tinian and Rota, and the medical referral program.

Deadline for submission of proposals is May 21.

Buckingham disclosed that there will be a review committee that will make a recommendation on the proposals to be submitted.

He noted, though, that with the anticipated emergency extension, there will be “flexibility” in the procurement process.

Although TMC is not in the business of providing consulting services for its own sake, Bengzon said they will review the RFP and “assess if submitting a proposal remains aligned with our strategic interests.”

“We remain committed to partnership with the CNMI in improving the state of health and healthcare in Micronesia,” she added.