Department of Veterans Affairs, Acquisition Opeations Service (93A), 810 Vermont Avenue, NW, Washington, DC 20420

R -- VENDOR CONFERENCE FOR REVENUE COLLECTION SERVICES DUE 071400 POC Robert N Beaty, Contract Specialist 202-273-8753 E-MAIL: Click here to contact Contract Specialist via e-mail, robert.beaty@mail.va.gov. The Department of Veterans Affairs (VA), Veterans Health Administration (VHA), intends to host a conference of commercial vendors who provide billing and collection services to healthcare provider networks. The purpose of this announcement is to identify vendors who plan to attend the conference so that facility and logistic arrangements can be finalized. The purpose of this conference is fourfold: 1) to learn from vendors how they support healthcare provider networks and what services and products they can provide e.g., registration, insurance identification, insurance verification, billing, collection, etc.; 2) to learn how vendors interface with hospital IT systems and how they could interface with the VA; 3) to learn what considerations affect compensation and pricing structures; and 4) to educate vendors about the VA, its revenue collection environment, and its strategy for outsourcing. Information gathered during the conference will assist the VA in developing a request for proposals to pilot test the outsourcing of revenue operations beginning in FY 2001. As a result of this conference, the VA expects to have a better understanding of the activities vendors can best perform for the VA, an understanding, which will be reflected in the subsequent solicitation -- a solicitation that must effectively communicate VA concerns and the critical aspects of its operating environment. The vendor conference is tentatively being planned for 1day on September 8, 2000 in Washington, DC. The VHA healthcare system is currently structured into 22 geographically defined Veterans Integrated Service Networks (VISNs). These 22 VISNs are composed of approximately 172 Medical Centers (VAMCs) and 600 community-based outpatient clinics. Some veterans are responsible for co-payments. Some Veterans who are eligible for VA healthcare benefits may have commercial insurance, which in some cases can be billed for the healthcare services the VHA provides. A key financial aim of the VA Strategic Plan for FY 2000 is to increase the share of the medical care operating budget coming from alternative revenue streams. While the VHA wants to improve revenue collection in the current environment, a number of factors are having a negative influence on cost recovery. These include a declining population of veterans, a shift in health care delivery away from inpatient to outpatient care, and an increasing share of HMO coverage among the insured veteran population. The VHA is attempting to overcome these revenue factors by implementing a reasonable charges rate system and improving its compliance efforts to achieve more accurate billing. In addition, VHA's Revenue Office has directed a series of assessments to improve operational effectiveness. One common finding among all of these assessments is that the process, and hence revenue generation, is not optimum -- i.e., no matter the negative influence of uncontrollable factors, revenue generation could be improved significantly. As a result, the VHA's Revenue Office has determined that it is appropriate and timely to consider contracting out some of its "third-party/first-party" revenue generating processes to improve collections and make the process as efficient as possible. Toward that end, the VA has embarked on a strategy to centralize revenue operations at VISN level and to operate these centralized operations as either contract or in-house franchise operations. The principal measure of success will be net revenue. To test this concept, two Pilot Tests will be conducted to evaluate the contract and two Pilot Tests will be conducted to evaluate franchise options. This will be a two-year test -- one year to implement and one year to operate and evaluate. In addition, implementation plans will be developed to facilitate transition for all VISNs and mitigate the negative impact on revenue caused by the trauma of consolidation. If the tests show that net revenue can be increased in either the franchise or contract mode, VISNs will prepare to consolidate their revenue functions and convert to either a franchise or contract operation. If both tests prove successful, VISNs will make the decision to operate their Central Revenue Unit -- either by contract or franchise. Interested parties should provide notice of intent to attend the conference to Robert Beaty, Contract Specialist by the close of business July 14, 2000 via facsimile or email. Further information on the conference will be provided upon receipt of the notice to attend. Interested parties shall include company name, number and names of those who will attend, telephone number, facsimile number, and email address with their notice of intent to attend. In addition, we request that each party include a brief statement of your company's offerings to healthcare provider networks. In addition we invite questions and comments concerning proposed solutions to the questions of support of healthcare provider networks, interface with VA IT systems, and pricing strategies. No information received from vendors will be released without prior consent and in no case will the name of the vendor supplying any information be released. The VA reserves the right to limit attendance at the conference. Respond to this announcement to Robert N Beaty,Contract Specialist at facsimile number 202-273-7448 or by e-mail to robert.beaty@mail.va.gov. Posted 06/29/00 (W-SN470177). (0181)

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