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Parkland Health Inks Contract with Management Consultant

Margaret Dick Tocknell, for HealthLeaders Media, November 18, 2011

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.

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