Single Source Procurement: Balancing Incentive Program Phase 3

Pursuant to New York State Finance Law § 163.10(b), The New York State Department of Health is presenting the following summary of relevant circumstances, and material and substantial reasons why a competitive procurement was not feasible.

The New York State Department of Health (DOH), Division of Long Term Care (DLTC) has selected three exceptional projects for additional funding in a third phase of the Balancing Incentive Program Innovation Fund. Previously, five projects were extended in the Balancing Incentive Program's Phase 2 awarded through a CRER for additional funding. The original award included 54 organizations. The selected projects have demonstrated success in providing innovative solutions that improve and rebalance the long term care system in New York State (NYS).

An additional funding period for Advance Care Alliance and St. Mary's Hospital for Children would further demonstrate two successful telehealth projects that meet health care reform's triple aim of a better health care experience, improved health and reduced per capita costs. The goals of these programs mimic those of the Delivery System Reform Incentive Payment (DSRIP) Program and their demonstrated results will inform New York's implementation of this important program to reduce unnecessary re-hospitalizations and emergency room utilization. Furthermore, these two programs will demonstrate how New York's proposed regulations, as drafted, fail to go far enough to make telehealth a proven game-changer in both acute and long term care.

The third project, administered by Children's Home of Jefferson County, submitted for renewed funding retroactively from October 1, 2016 through September 30, 2017 supports a psychiatrist and other professional staff in a historically underserved region. Extending both funding and time to complete the demonstration will continue support for these vital professional resources that are making a difference in the lives of children with severe mental illness and their families; keeping children out of institutional settings, including hospitals/ERs; and helping families and the children themselves learn to cope with their behavioral disabilities. It was thought that the program would have been subsumed into the Behavioral Health 1115 Waiver, but delays in CMS approval of that Waiver Amendment make this extended funding necessary to avoid losing these vital resources. Further, the New York State Office of Mental Health (OMH) has provided a bridge loan to Children's Home of Jefferson County in order to continue the program until a new contract can be executed by DOH.

Procurement / Program Name	Balancing Incentive Program Phase 3
Contractor Name(s)	see description
Contract Period	10/1/2016 – 9/30/2017
Contract Number(s)	C029818, C029821, C029853, C029865