Parkland Health Inks Contract with Management Consultant

As part of its continuing efforts to shore up its operations to Centers for Medicare & Medicaid Services standards, Parkland Health & Hospital System in Dallas signed on Wednesday a multi-million dollar contract with a New York-based management consulting firm that specializes in performance improvement.

The contract with Alvarez & Marsal is among the requirements of the systems improvement plan signed in September by Parkland and officials from the Dallas office of the Centers for Medicare & Medicaid Services.

The safety net hospital is out of compliance for an estimated $417 million in annual Medicare and Medicaid contracts. CMS ordered a review in July of the entire hospital facility after identifying dozens of deficiencies deemed so serious as to create "an immediate and serious threat to patient health and safety," according to the 600-page CMS survey report.

The two-year contract, which is goes into effect on Dec. 1, will cost Parkland between $5 million and $6.5 million. John Dragovits, Parkland's executive vice president and CFO, signed the contract, which was approved by the hospital's board of managers at its October meeting.

According to the contract, Alvarez & Martin will commit a team of 19 medical experts to the Parkland job. Under the terms of the 30-page agreement, A&M will:

• Analyze Parkland's operations compared to industry accepted standards and by Feb. 1 provide to CMS a report that outlines the areas of improvement required for Parkland to come into compliance with all Medicare conditions of participation as well as the federal Emergency Medical Treatment and Labor Act or EMTALA.
• Write a detailed plan outlining the specific actions Parkland must take to return to full compliance.
• Review Parkland's existing quality assessment and performance improvement program and develop by March 1 a plan that details any needed modifications and improvements to the program.
• Provide a full-time, independent, on-site compliance officer for oversight and coordination of Parkland's efforts to return to compliance.

All plans developed by Alvarez & Martin are subject to CMS approval. Within one year of plan approval CMS will conduct a follow up survey to confirm that Parkland is in compliance for the Medicare program.