Summary of GNYHA Contracting Process
The GNYHA group purchasing program is offered in conjunction with Premier Purchasing Partners, LP ("Premier") pursuant to an agreement between GNYHA 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 (the Regional Program). Under the terms of the Premier/GNYHA Program, GNYHA 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's regional group that participate in the Premier Program through GNYHA (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, is subject to Premier's contracting rules (see Premier's website, www.premierinc.com, and Premier's response to the HGPII survey), which are publicly available. The Regional Program, which is administered directly by GNYHA, is subject to GNYHA's contracting rules and related policies described below. GNYHA engages in a competitive contracting process, but due to the nature of some of the products and services offered through the Regional Program, GNYHA utilizes a competitive negotiation process rather than a formal RFP process in many instances relating to the Regional Program.
The primary goals of the Regional Program are to provide GNYHA members with (i) better pricing terms than can be offered nationally due to efficiencies and other benefits to vendors created by the GNYHA group and (ii) products and services that are not offered on a national basis.
- 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 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 negotiates such enhancements with vendors that have been identified by GNYHA members and staff, using various GNYHA advisory committees and other due diligence methods. The selection of which vendor will offer a regional enhancement contract may 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 group. GNYHA 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 and will provide details regarding when and where interested vendors may submit proposals. Participating Vendors are also free to proactively submit proposals to GNYHA for regional enhancement contracts. Such proposals should be submitted to:
John Vivenzio
Vice President, Contract Operations
(212) 258-5319
vivenzio@gnyha.org
The GNYHA Web site also lists all current regional contracts, including the product description, vendor name and term of such contracts.
- Process for Contracts That Are Not Offered Through the National Program
As part of its Regional Program, GNYHA offers some products outside of the pharmaceutical, medical/surgical, capital equipment and other core products areas offered through the National Program, such as software products and other tools that improve hospital operations and other non-commodity items. GNYHA's review of such products is initiated either at the request of a member, on an inquiry from a vendor that generates member interest, or if GNYHA staff otherwise determines a need for a product/service. Prior to commencing negotiations on a contract, GNYHA conducts extensive activities to gauge member interest, seek member input, and begin to identify potential suppliers.
If the nature of the product or service is conducive to an RFP process, GNYHA will conduct a formal RFP. However, many of these regional contract items are for highly-specialized services rather than commodities that do not lend themselves to an RFP process, in part because such a process would result in GNYHA receiving proposals for items that are not comparable. An example of this would be a particular software tool that assists facilities in operations and which has been recommended by and is being used by some GNYHA members. While other vendors may offer similar products, members may be more interested in the design of one particular tool, in which case, it would not make sense to do an RFP.
When an RFP is not practicable, GNYHA will use internet searches, industry materials and information provided by members to attempt to identify numerous vendors that offer the relevant product or service and invite them to engage in a competitive negotiation for a contract award. If GNYHA decides to offer a regional contract in a particular category, the GNYHA website must identify that product/service category and provide vendors with information on how, when and where to submit a proposal. GNYHA 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, based on factors including pricing, quality, and service offering. GNYHA may also consider factors such as reputation of a vendor and members' past experience with a vendor in making its decision. GNYHA shall keep a record of the reason for the selection of a particular vendor. GNYHA may in its discretion decide not to award any contract after reviewing all proposals.
For a summary of the GNYHA process for contracts not offered through the national program, click here.
- Custom Contracts
Regional contracts may also be entered into on a "custom contract" basis, when one or more members request that GNYHA enter into a contract with a particular vendor. GNYHA will post notice that a custom contract is under negotiation for the relevant product/service, but need not take proposals from other vendors in that case.