Disproportionate Share Hospital (DSH) Program Audits and Final Uncompensated Care (UC) Reconciliation Services

The contract involves providing specialized audit and reconciliation services for the Texas Medicaid Disproportionate Share Hospital (DSH) program and Uncompensated Care (UC) payments, with the Texas Health and Human Services Commission (HHSC) seeking a licensed CPA firm to conduct annual independent audits, generate detailed data summaries, and perform final reconciliations in compliance with federal Medicaid statutes, notably Title XIX of the Social Security Act. The initial contract term spans three years, starting around November 2025, with HHSC reserving the right to extend it up to two additional years. The procurement process emphasizes a best value selection, focusing on qualifications, audit methodology, and work plan, while explicitly excluding price from the evaluation criteria. The solicitation schedule includes a pre-proposal conference, question deadline, and response submission date, with responses due by August 21, 2025. The contractual framework incorporates multiple federal and state clauses, notably the Health and Human Services Uniform Terms and Conditions (effective November 2023), along with federal assurances, certifications, and data use agreements that govern confidentiality, HIPAA compliance, and data security obligations. Insurance requirements mandate comprehensive coverage, including cyber liability, with proof of compliance required throughout the contract duration. The agreement also specifies personnel management protocols, requiring prior approval from HHSC for key personnel changes, detailed qualifications for personnel, and procedures for substitution. Administrative provisions outline invoice submission processes, payment timelines (typically within 30 days), and documentation standards, though specific accounting codes are not detailed. The contract references numerous exhibits, including affirmation forms, data use agreements, and subcontracting plans, all incorporated by reference, but does not specify line-item pricing or detailed cost structures, instead citing a historical average contract value of approximately $1.2 million annually. Lastly, proposal submission instructions specify electronic, searchable PDF formats via the HHSC online bid portal or email, with strict deadlines and confidentiality markings required on all submitted materials.