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GNYHA Services Contracting Process

Summary of GNYHA Services Contracting Process

The GNYHA Services group purchasing program is offered in conjunction with Premier Purchasing Partners, LP ("Premier") pursuant to an agreement between GNYHA Services and Premier, which took effect on July 1, 2004. It consists of a national component directly operated by Premier (the National Program) and a regional component directly operated by GNYHA Services (the Regional Program). Under the terms of the GNYHA Services/Premier Program, GNYHA Services offers its members national contracts, which are entered into between Premier and vendors, and supplements the National Program by providing certain regional contracts through its Regional Program. Regional contracts include (i) contracts that are enhancements to the Premier national contracts, specifically for members of GNYHA Services' regional group that participate in the Premier Program through GNYHA Services; (ii) contracts for products and services offered through the National Program but through a vendor that does not participate in the National Program; and (iii) contracts for products and services that are not offered through the National Program.

The national contracting process, which covers the vast majority of the contracts offered by GNYHA Services, is subject to Premier's contracting rules (see Premier's Web site, and Premier's response to the HGPII survey). The Regional Program, which is administered directly by GNYHA Services, is subject to GNYHA Services' contracting rules and related policies described below. GNYHA Services engages in a competitive contracting process, but due to the nature of some products and services offered through the Regional Program, GNYHA Services uses a competitive negotiation process rather than a formal RFP process in many instances.

The Regional Program's primary goals are to provide GNYHA Services members with (i) better pricing terms than can be offered nationally due to efficiencies and other benefits to vendors created by the GNYHA Services group; and (ii) products and services that are not offered on a national basis.

  1. Process for Contracts Relating to Pharmaceutical, Medical-Surgical, Capital Equipment and Other Commodities That Are Offered Through National Contracts

    With respect to enhancements to national contracts, GNYHA Services negotiates with one or more of the relevant vendors that has been awarded a Premier contract as a result of a competitive bid. In essence, the regional enhancement is a further negotiation from the national contract award terms. GNYHA Services negotiates such enhancements with vendors that GNYHA Services members and staff, using various GNYHA Services advisory committees and other due diligence methods, have identified. The decision to select a vendor for a regional enhancement contract be dictated by factors such as members' willingness to use a particular vendor's products and/or the vendor's willingness to offer enhanced terms to the GNYHA Services group. GNYHA Services will post a notice on its Web site notifying all relevant vendors when it is seeking a regional enhancement to a Premier contract for products or services in a particular category. It will also provide details for interested vendors to submit proposals. Participating Vendors are also free to proactively submit proposals to GNYHA Services for regional enhancement contracts. Such proposals should be submitted to:

    GNYHA Services Contracting Services Department
    (212) 259-0729

    The GNYHA Services Web site also lists all current regional contracts, including the product description, vendor name, and term of such contracts.

  2. Process for Contracts That Are Not Offered Through the National Program

    As part of its Regional Program, GNYHA Services offers some products outside of the pharmaceutical, medical/surgical, capital equipment, and other core products areas offered through the National Program. These products include non-commodity items such as software and other tools that improve hospital operations. GNYHA Services reviews such products at the request of a member, because a vendor inquiry generates member interest, or GNYHA Services staff otherwise determines a need for a product/service. Before contract negotiations start, GNYHA Services gauges member interest, seeks member feedback, and identifies potential suppliers.

    If the nature of the product or service is conducive to an RFP process, GNYHA Services will conduct a formal RFP. However, many of these regional contract items are for highly specialized services that do not lend themselves to an RFP process, in part because such a process would result in GNYHA Services receiving proposals for items that are not comparable. For example, some GNYHA Services members may recommend a particular software tool that aids in facility operations. While similar products may be available, members may be more interested in one particular tool's design. in this example, it would not make sense to do an RFP.

    When an RFP is not practicable, GNYHA Services will use Internet searches, industry materials, and information provided by members to attempt to identify numerous vendors that offer the relevant product or service. Once the vendor(s) has been identified, GNYHA will invite them to engage in a competitive negotiation for a contract award. If GNYHA Services decides to offer a regional contract in a particular category, the GNYHA Services Web site must identify that product/service category and provide vendors with information on how, when and where to submit a proposal. GNYHA Services will review all proposals submitted within the listed guidelines and award the contract to the vendor(s) that is determined to offer the terms that best meet members' needs. That decision will be based on factors including pricing, quality, and service offering. GNYHA Services may also consider factors such as a vendor's reputation and past experience with members in making its decision. GNYHA Services shall keep a record of the reason for a particular vendor's selection. GNYHA Services may in its discretion decide not to award any contract after reviewing all proposals.

    View more information on GNYHA Services Process for Contracts Not Offered Through the National Program.

  3. Custom Contracts

    Regional contracts may also be entered into on a "custom contract" basis, when one or more members request that GNYHA Services enter into a contract with a particular vendor. GNYHA Services will post a notice that a custom contract is under negotiation for the relevant product/service, but need not take proposals from other vendors in that case.

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