Independent Outside Audit of the Indian Health Service Act of 2017

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Independent Outside Audit of the 
Indian Health Service Act of 2017''.

SEC. 2. INDEPENDENT OUTSIDE AUDIT OF THE INDIAN HEALTH SERVICE.

    (a) Definitions.--In this section:
            (1) Reputable private entity.--The term ``reputable private 
        entity'' means a private entity that--
                    (A) has experience with, and proven outcomes in 
                optimizing the performance of, Federal health care 
                delivery systems, the private sector, and health care 
                management; and
                    (B) specializes in implementing large-scale 
                organizational and cultural transformations, especially 
                with respect to health care delivery systems.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) Service.--The term ``Service'' means the Indian Health 
        Service.
    (b) Assessment.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall enter into one or more contracts with 
a reputable private entity to conduct an independent assessment of the 
health care delivery systems and financial management processes of the 
Service.
    (c) Program Integrator.--
            (1) In general.--If the Secretary enters into contracts 
        under this section with more than 1 reputable private sector 
        entity, the Secretary shall designate one such entity that is 
        predominantly a health care organization as the program 
        integrator.
            (2) Responsibilities.--The program integrator designated 
        under paragraph (1) shall be responsible for coordinating the 
        outcomes of the assessments conducted by the reputable private 
        entities under this section.
    (d) Areas of Study.--Each assessment conducted under subsection (b) 
shall address each of the following:
            (1) Current and projected demographics and unique health 
        care needs of the patient population served by the Service.
            (2) Current and projected health care capabilities and 
        resources of the Service, including hospital care, medical 
        services, and other health care furnished by non-Service 
        facilities under contract with the Service, to provide timely 
        and accessible care to eligible patients.
            (3) The authorities and mechanisms under which the 
        Secretary may furnish hospital care, medical services, and 
        other health care at non-Service facilities, including whether 
        it is recommended that the Secretary have the authority to 
        furnish such care and services at such facilities through the 
        completion of episodes of care.
            (4) The appropriate systemwide access standard applicable 
        to hospital care, medical services, and other health care 
        furnished by and through the Service, including an 
        identification of appropriate access standards for each 
        individual specialty and post-care rehabilitation.
            (5) The workflow process at each medical facility of the 
        Service for scheduling appointments to receive hospital care, 
        medical services, or other health care from the Service.
            (6) The organization, workflow processes, and tools used by 
        the Service to support clinical staffing, access to care, 
        effective length-of-stay management and care transitions, 
        positive patient experience, accurate documentation, and 
        subsequent coding of inpatient services.
            (7) The staffing level at each medical facility of the 
        Service and the productivity of each health care provider at 
        such medical facility, compared with health care industry 
        performance metrics, which may include an assessment of any of 
        the following:
                    (A) The case load of, and number of patients 
                treated by, each health care provider at such medical 
                facility during an average week.
                    (B) The time spent by such health care provider on 
                matters other than the case load of such health care 
                provider.
                    (C) The amount of personnel used for administration 
                compared with direct health care in the Service being 
                comparable to the amount used for administration 
                compared with direct health care in private health care 
                institutions.
                    (D) The allocation of the budget of the Service 
                used for administration compared with the allocation of 
                the budget used for direct health care at Service-
                operated facilities.
                    (E) Any vacancies in positions of full-time 
                equivalent employees that the Service--
                            (i) does not intend to fill; or
                            (ii) has not filled during the 12-month 
                        period beginning on the date on which the 
                        position became vacant.
                    (F) The disposition of amounts budgeted for full-
                time equivalent employees that is not used for those 
                employees because the positions of the employees are 
                vacant, including--
                            (i) whether the amounts are redeployed; and
                            (ii) if the amounts are redeployed, how the 
                        redeployment is determined.
                    (G) With respect to the approximately 3,700 
                Medicaid-reimbursable full-time equivalent employees of 
                the Service--
                            (i) the number of those employees who are 
                        certified coders; and
                            (ii) whether that number of employees is 
                        necessary.
            (8) The information technology strategies of the Service 
        with respect to furnishing and managing health care, including 
        an identification of any weaknesses and opportunities with 
        respect to the technology used by the Service, especially those 
        strategies with respect to clinical documentation of episodes 
        of hospital care, medical services, and other health care, 
        including any clinical images and associated textual reports, 
        furnished by the Service in Service or non-Service facilities.
            (9) Business processes of the Service, including processes 
        relating to furnishing non-Service health care, insurance 
        identification, third-party revenue collection, and vendor 
        reimbursement, including an identification of mechanisms as 
        follows:
                    (A) To avoid the payment of penalties to vendors.
                    (B) To increase the collection of amounts owed to 
                the Service for hospital care, medical services, or 
                other health care provided by the Service for which 
                reimbursement from a third party is authorized and to 
                ensure that such amounts collected are accurate.
                    (C) To increase the collection of any other amounts 
                owed to the Service with respect to hospital care, 
                medical services, and other health care and to ensure 
                that such amounts collected are accurate.
                    (D) To increase the accuracy and timeliness of 
                Service payments to vendors and providers.
            (10) The purchasing, distribution, and use of 
        pharmaceuticals, medical and surgical supplies, medical 
        devices, and health care related services by the Service, 
        including the following:
                    (A) The prices paid for, standardization of, and 
                use by the Service of, the following:
                            (i) Pharmaceuticals.
                            (ii) Medical and surgical supplies.
                            (iii) Medical devices.
                    (B) The use by the Service of group purchasing 
                arrangements to purchase pharmaceuticals, medical and 
                surgical supplies, medical devices, and health care 
                related services.
                    (C) The strategy and systems used by the Service to 
                distribute pharmaceuticals, medical and surgical 
                supplies, medical devices, and health care related 
                services to medical facilities of the Service.
            (11) The process of the Service for carrying out 
        construction and maintenance projects at medical facilities of 
        the Service and the medical facility leasing program of the 
        Service, including--
                    (A) whether the maintenance budget is updated or 
                increased to reflect increases in maintenance costs 
                with the addition of new facilities and whether any 
                increase is sufficient to support the growth of the 
                facilities; and
                    (B) what the process is for facilities that reach 
                the end of their proposed life cycle.
            (12) The competency of leadership with respect to culture, 
        accountability, reform readiness, leadership development, 
        physician alignment, employee engagement, succession planning, 
        and performance management, including--
                    (A) the reasons for a lack in transparency in the 
                culture of the Service, leading tribal leadership to 
                request increased transparency and more open 
                communication between the Service and the people served 
                by the Service; and
                    (B) whether any checks and balances exist to assess 
                potential fraud or misuse of amounts within the 
                Service.
            (13) The lack of a funding formula to distribute base 
        funding to the 12 Service areas, including the following:
                    (A) The establishment of the current process of 
                funding being distributed based on historical 
                allocations and not on need such as population growth, 
                number of facilities, etc.
                    (B) How the implementation of self-governance 
                policies has impacted health care delivery.
                    (C) The communication to area office directors on 
                distribution decisionmaking.
                    (D) How the tribal and residual shares are 
                determined for each Indian tribe and the amounts of 
                those shares.
                    (E) The auditing or evaluation process used by the 
                Service to determine whether amounts are distributed 
                and expended appropriately, including--
                            (i) whether periodic or end-of-year records 
                        document the actual distributions; and
                            (ii) whether any auditing or evaluation is 
                        conducted in accordance with generally accepted 
                        accounting principles or other appropriate 
                        practices.
            (14) Whether the Service tracks patients eligible for two 
        or more of either the Medicaid program under title XIX of the 
        Social Security Act (42 U.S.C. 1396 et seq.), health care 
        received through the Service, or any other Federal health care 
        program (referred to in this section as ``dual eligible 
        patients''). If so, how dual eligible patients are managed.
            (15) The number of procurement contracts entered into and 
        awards made by the Service under section 23 of the Act of June 
        25, 1910 (commonly known as the ``Buy Indian Act'') (25 U.S.C. 
        47), and a comparison of that number, with--
                    (A) the total number of procurement contracts 
                entered into and awards made by the Service during the 
                5 fiscal years prior to the date of enactment of this 
                Act; and
                    (B) the process used by the Service facilities to 
                ensure compliance with section 23 of the Act of June 
                25, 1910 (commonly known as the ``Buy Indian Act'') (25 
                U.S.C. 47).
            (16) Any other items the reputable private entity 
        determines should be addressed in the independent assessment of 
        the Service.
    (e) Report on Assessment.--
            (1) Submission to secretary.--Not later than 240 days after 
        the date a contract is entered into under subsection (b), the 
        entity carrying out the assessment under the contract shall--
                    (A) complete the assessment; and
                    (B) submit to the Secretary a report describing the 
                findings and recommendations of the entity with respect 
                to the assessment.
            (2) Submission to congress.--Immediately on receipt of the 
        report under paragraph (1)(B), the Secretary shall submit the 
        report to--
                    (A) the appropriate committees of Congress, 
                including--
                            (i) the Committee on Appropriations of the 
                        Senate; and
                            (ii) the Committee on Appropriations of the 
                        House of Representatives;
                    (B) the Majority Leader of the Senate;
                    (C) the Minority Leader of the Senate;
                    (D) the Speaker of the House of Representatives; 
                and
                    (E) the Minority Leader of the House of 
                Representatives.
            (3) Publication.--Not later than 30 days after receiving 
        the report under paragraph (1)(B), the Secretary shall publish 
        such report in the Federal Register and on an Internet website 
        of the Service that is accessible to the public.
    (f) Funding.--The Secretary shall use, to carry out this section, 
such amounts as are necessary from other amounts available to the 
Secretary that are not otherwise obligated.

Summary: Independent Outside Audit of the Indian Health Service Act of 2017 This bill requires the Department of Health and Human Services to contract with private entities to assess the health care delivery systems and financial management of the Indian Health Service (IHS). The assessment must address IHS issues including: the demographics and health care needs of the patient population, health care capabilities and resources, staffing levels at medical facilities and the productivity of each health care provider, information technology strategies related to providing health care, business processes, the competency of leadership regarding specified issues, tracking patients eligible for other federal health care programs, and the number of procurement contracts and awards under the Buy Indian Act.