Friday, February 22, 2019

API Contract Awarded - NO BID - To Wellpath by Alaska Gov. Dunleavy

At the bottom of this post is a copy of the contract I found posted at DHSS today between the State of Alaska and Wellpath, for the latter to take over operations of the Alaska Psychiatric Institute.  Before we get there, I'll just highlight what I see in the contract.  There seems to be a fair amount of boiler plate (standard contract wording) and then specifics.

I see two phases:
Phase 1 - Startup  when they will figure out how they're going to pull this off
("contractor shall take all actions reasonably necessary for API to be in full operation and capable of serving patients by June 30, 2019. . .")   
It's not clear what's happening in the mean time.  Is the current state staff doing the work?  I haven't heard about the place being shut down and patients sent elsewhere.  But I would imagine staff is all looking for work somewhere else.  It does say that
"Wellpath shall provide sufficient staff to effect a transition of existing staff and all services to assume complete operation of API no later than July 1, 2019." (p. 6/21)
Phase II - Beginning July 1, 2019 is when they take over.
"Commencement of Phase 2 will begin on the Operations Date, upon acceptance of completion of Phase 1.  Upon commencement of Phase 2, Wellpath shall be authorized to manage and operate all aspects of API. . . "

Appendix C is Description of Services.

Then there are Exhibits:

Exhibit 1 - Staff Planning
Several pages listing positions and number of people to fill them.  Note there are only

12.5 positions listed under Healthcare
130 positions under Nursing
48.5 positions for "Treatment/Mental Health"
34 positions for "Safety"

28 of these are for "Therapeutic Safety Technicians."  When I looked up what that meant, I found a LinkedIn job announcement from Wellpath for this job posted 'one week ago."  They are no longer accepting applications.   It requires a minimum age of 19 and a high school diploma.

Here's the contract's summary of the Staffing Plan:

ARNP refers to Advanced Registered Nurse Practitioners.

Appendix D:  Payment for Services

Phase 1 Startup Billing is for $1 million.   This is to figure out how they plan to take over operations. If this were a a competitively bid contract, it would seem to me this work would have been done by the companies doing the bid on their own dime.  I could be wrong, but I know companies put in a lot of prep work in their bids for contracts.

Phase 2 Operations Budget is for $1,383.82 per diem for 80 available beds.  Or $110,705.60 per day.  Or over $40 million for a year.
Phase 2 Estimated Annual Pass-Through Expenses:  $3,266.525.

So, as best as I can read this, the bill will be for about $43 million a year.
Looking back at previous budgets, I see API listed at around $33 million a year.

[NOTE:  Budgets were never my area of expertise.  I only occasionally try to get into them to find things, so I'm making preliminary observations here, waiting for others to jump in and clarify all this more accurately.]

[UPDATE Feb 22, 2019 9:00pm - I forgot to put up this image for people who would like to see who these people are who are now taking over API.  Wellpath CEO Jorge Dominicis, Correct Care Solutions co-founder Jerry Boyle, Wellpath President Kip Hallman.]

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