[I'm tempted to say that the only thing everyone agrees on is that that the Crisis Triage Center should be named after Ron Gurley, whose idea it was and who worked so hard to make it happen. ]
In writing the above column and blog, I assumed, without researching it, that the statutory “Hospital and Health Care Exemption” applied to permit the county’s proposed departure from the normal requirement to publish a Request for Proposals. However, once a County Commissioner suggested I read the statute, that reading raised new questions. I’m not a municipal law specialist, and the press of other business today precluded my researching the law as completely as I’d have liked to. However, below I’ve reprinted the law and raised some questions I hope county management will address before or during tomorrow’s meeting.
13-1-98.1. Hospital and health care exemption.
The provisions of the Procurement Code shall not apply to procurement of items of tangible personal property or services by a state agency or a local public body through:
A. an agreement with any other state agency, local public body or external procurement unit or any other person, corporation, organization or association that provides that the parties to the agreement shall join together for the purpose of making some or all purchases necessary for the operation of public hospitals or public and private hospitals, if the state purchasing agent or a central purchasing office makes a determination that the arrangement will or is likely to reduce health care costs; or
B. an agreement with any other state agency, local public body or external procurement unit or any other person, corporation, organization or association for the purpose of creating a network of health care providers or jointly operating a common health care service, if the state purchasing agent or a central purchasing office makes a determination that the arrangement will or is likely to reduce health care costs, improve quality of care or improve access to care.
History: Laws 1998, ch. 69, § 1.
I have not heard the County specify whether it contends that subsection A or Subsection B authorizes its proposed conduct here. However, as (A) applies solely to an agreement to “join together for the operation of hospitals,” and the Crisis Triage Center would not seem to be a hospital, (B) seems the more likely. (Each subsection requires that either “the state purchasing agent or a central purchasing office makes a determination that the arrangement will or is likely to reduce health care costs, improve quality of care, or improve access to care. Has the county’s purchasing department made such a determination? Did the determination provide a factual basis for a conclusion that proceeding without an RFP was superior in one of the ways set forth in the law?)
Subsection
(B) could apply if this is “an agreement . . . for the purpose of .
. . jointly operating a common health care service.” Let’s
assume the Triage Center constitutes a “common health care
service.” Does the County contend that its proposed engagement
of RI to run the Crisis Triage Center is a proposal to run the Center
jointly? Certainly it has sounded more as if Doña
Ana County would pay RI to run the Center. And Resolution 2013-90 states that "the Commission has determined that it is time to move forward with the process of selecting a provider to run the center" and authorizes the County Manager to start that process.
These are questions. I do not presume to offer answers. However, underlying the discussion that Legislature’s language suggests doubts be resolved in favor of maximum fairness, not maximum administrative convenience:
13-1-29. Rules of construction; purposes.
A. The Procurement Code shall be liberally construed and applied to promote its purposes and policies.
. . .
C. The purposes of the Procurement Code are to provide for the fair and equitable treatment of all persons involved in public procurement, to maximize the purchasing value of public funds and to provide safeguards for maintaining a procurement system of quality and integrity.
In short, I hope the county manager or the county attorney will articulate with specificity the legal basis for concluding that the exemption applies. I think doing so, rather than leaving the matter uncertain, minimizes the chance of wasteful misunderstandings and perhaps unnecessary litigation.
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