Single Source Procurement: Single Source Procurement: Nursing Home to Independent Living Supportive Housing

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.

With issuance of Executive Order #5, Governor Andrew M. Cuomo established the Medicaid Redesign Team (MRT) in January 2011, bringing together a group of healthcare stakeholders, experts and advocates from throughout New York State. The goals of the MRT are to improve overall health system quality and efficiency, streamline and focus health care administrative and financial structures, and reduce Medicaid costs, while emphasizing the delivery of well-managed, cost effective quality health services.

The Supportive Housing Workgroup was created by the MRT and is charged with developing recommendations for changes to housing programs for high-need Medicaid beneficiaries, such as the homeless, precariously housed or those living in institutional settings, which would reduce the dramatic growth in Medicaid spending in New York while maintaining or improving health outcomes for Medicaid beneficiaries.

The Nursing Home to Independent Living Supportive Housing pilot programs service the needs of seniors and individuals with physical disabilities who require a nursing home level of care and who currently are homeless, residing in the community, in nursing homes, or are at risk of nursing home placement. The services provided are rental subsidies and general support services. The renewal of this pilot program allows us to continue monitoring the program progress and, most importantly, determine the actual reduction in Medicaid costs and/or improvement in health statuses.

These contracts were originally awarded through a competitive procurement in 2014 (RFA #1310280314) as a pilot program. The reason for utilizing our existing providers is that they are just now reaching program capacity. They had a delayed start (not caused by providers) initiating and transitioning into the program. With this is mind, the current data collected is not sufficient to fully determine the success of each of the programs. Ultimately, the successfulness of these programs will be determined by the accrued savings to Medicaid and/or improved health outcomes over the two-to-three year period of data collecting. We are just now starting to see all the program benefits. With the additional two years and the MRT Supportive Housing Evaluation by the Research Foundation at the University of Albany (which began January 2016, and will continue through December 2018), we will be able to fully evaluate the programs' sustainability with much more accuracy. The current contract terminates on November 30, 2016 which is why we are amending with a 2 year extension through 11/30/2018.

The awardees, the Salvation Army, Syracuse Area Services and the Federation of Organizations for the New York State Mentally Disabled were awarded the contracts through a competitive procurement (RFA #1310280314) in 2014.

Procurement / Program Name Nursing Home to Independent Living Supportive Housing
Contractor Name(s) The Salvation Army – Syracuse Area Services Federation of Organizations for the NYS Mentally Disabled, Inc.
Contract Period 12/1/2016 – 11/30/2018
Contract Number(s) C029877, C029878