HHSC contracts with Deloitte, Inc to evaluate costs and spending efficacy

HHSC announced Thursday a contract with Deloitte, Inc. to review, report, and conduct required studies outlined in the General Appropriations Act of the 85th legislative session. The studies dig into the efficacy of the state’s purchasing and evaluate best practices within CHIP and Medicaid.

Specifically, Deloitte will study potential cost savings in the administration of prescription drug benefits, review managed care in Medicaid and CHIP, review expenses incurred by managed care organizations in CHIP and Medicaid, and study Medicaid managed care rate setting processes and methodologies in other states.

HHSC has also asked Deloitte to review and report on the agency’s contract management and oversight for Medicaid and CHIP managed care contracts. Within this study, Deloitte will evaluate nine different focus areas including state monitoring standards, quality of care, program integrity, and rate development standards.

HHSC has made a series of contracting errors recently, including a scoring error that forced five CHIP contracts to be terminated. Deloitte’s study also includes an evaluation of HHSC’s contract amendments and procurements.

Deloitte presented an overview to HHSC on the specific methods they will use to conduct these studies and the data that will include in the reports. The full presentation can be viewed here.