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Regular Session, 2011
SENATE RESOLUTION NO. 106
BY SENATOR JACKSON
HEALTH CARE. Requests the LSU Board of Supervisors to design and implement a
reverse auction pilot program to be utilized by state hospitals which are managed by the LSU
Board of Supervisors.
A RESOLUTION1
To urge and request the Louisiana State University Board of Supervisors to design and2
implement a reverse auction pilot program to be utilized by state hospitals which are3
managed by the Louisiana State University Board of Supervisors.4
WHEREAS, it is in the best interest of the state to pursue the most cost-effective5
method available for the procurement of goods and services; and6
WHEREAS, a reverse auction is a competitive online solicitation process on the7
Internet for equipment, supplies, and other materials in which vendors compete against one8
another online in real time in an open and interactive environment; and9
WHEREAS, in many instances the use of a reverse auction can lead to substantial10
savings in the procurement of goods and services when compared to more traditional11
procurement methods.12
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby13
urge and request the Louisiana State University Board of Supervisors to design and14
implement a reverse auction pilot program to be utilized by state hospitals which are15
managed by the Louisiana State University Board of Supervisors by no later than October16
1, 2011.17
BE IT FURTHER RESOLVED that the Louisiana State University Board of18 SR NO. 106
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Supervisors shall only design and implement a reverse auction pilot program in the event1
that Senate Bill No. 83 of the 2011 Regular Session is enacted into law.2
BE IT FURTHER RESOLVED that in the event that the Louisiana State University3
Board of Supervisors chooses to implement a pilot program, the pilot program shall be4
designed and implemented pursuant to the following parameters:5
(1) As soon as practical after the enactment of Senate Bill No. 83 of the 2011 Regular6
Session, the Louisiana State University hospitals shall release a solicitation to engage a7
reverse auction technology provider that also offers healthcare consulting services under the8
following terms and conditions:9
(a) The reverse auction vendor shall offer technology that is certified by a third party10
to be HIPAA compliant as of the date of the release of the solicitation.11
(b) The reverse auction technology vendor shall also offer healthcare consultants12
with experience in running reverse auctions with and for a large university-based hospital13
group.14
(c) The reverse auction technology vendor must be willing to provide the reverse15
auction software and consulting services without receiving any up-front payment of fees for16
their services and out-of-pocket expenses, and the reverse auction technology vendor should17
be paid for their software and consulting services on a gain-share only basis to ensure a cost18
savings for LSU hospitals.19
(d) The reverse auction vendor shall assist LSU hospitals with selecting product20
categories that are most likely to result in the most significant and easily identifiable cost21
savings.22
(e) A bidding credit shall be granted to any reverse auction technology vendor with23
offices located within the state of Louisiana.24
(f) The Louisiana State University Board of Supervisors shall submit to the Joint25
Legislative Committee on the Budget an implementation plan by October 15, 2011, and an26
annual report which details the results of the activities pursuant to the pilot program.27
(g) The Louisiana State University Health Care Services Division shall establish28
annual savings goals in the pilot program.29
(2) To ensure that LSU hospitals receive the most favorable pricing in the market,30 SR NO. 106
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all group purchasing organizations shall be excluded from participating in this solicitation.1
(3) One of the purposes of this pilot program shall be to assist the state director of2
purchasing to promulgate regulations governing reverse auction activities across all political3
subdivisions within the state and commencement of this pilot program shall not be delayed4
by any rulemaking activities of the state director of purchasing or for any other reason.5
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the6
chairman of the Louisiana State University Board of Supervisors.7
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Greg Waddell.
DIGEST
Jackson SR No.
Requests the LSU Board of Supervisors to design and implement a reverse auction pilot
program to be utilized by state hospitals which are managed by the LSU Board of
Supervisors.