Louisiana Senate Bill SR106

Louisiana 2011 Regular Session

• Introduced: 6/13/11
• Passed: 6/15/11

Caption

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.

Impact

If implemented, the reverse auction pilot program is set to transform procurement processes within LSU hospitals by allowing real-time competitive bidding. This approach aims to enhance purchasing efficiency and achieve better pricing outcomes. Additionally, LSU hospitals are encouraged to work with a vendor who is HIPAA compliant and experienced in the healthcare sector, ensuring that the technology employed is not only effective but also respectful of patient privacy regulations. A critical aspect of the resolution is the requirement for the LSU Board to report on the program’s findings and results to the Joint Legislative Committee on the Budget, thereby fostering accountability in the procurement strategy.

Summary

Senate Resolution 106 urges the Louisiana State University (LSU) Board of Supervisors to establish a reverse auction pilot program aimed at state hospitals managed by the Board. The resolution emphasizes the significance of utilizing cost-effective procurement methods through competitive bidding. A reverse auction, which is defined as an online solicitation process where vendors compete for contracts in real time, could potentially lead to significant savings in the acquisition of necessary goods and services for the healthcare sector in Louisiana. The resolution insists on implementing the pilot program after the enactment of Senate Bill 83 during the 2011 Regular Session.

Sentiment

The sentiment surrounding SR106 appears to be pragmatic, focusing on financial savings within the healthcare procurement framework. Supporters of the resolution view the adoption of a reverse auction system as a progressive step towards modernizing procurement methods. They argue that it takes advantage of technology to create a more competitive environment that benefits state hospitals financially. While specific opposition to the resolution is not cited in the available documents, it can be anticipated that concerns related to the potential quality of goods and services procured through such a system might arise.

Contention

The notable contention within the resolution arises from the dependence on the passage of Senate Bill 83, without which the implementation of the pilot program cannot proceed. Furthermore, the resolution stipulates that no group purchasing organizations shall be included in this solicitation, potentially limiting collaboration avenues. This could raise concerns regarding the effectiveness of the reverse auction approach in delivering consistently high-quality supplies and alignments with broader healthcare needs across the state.