ENROLLED ORIGINAL
A RESOLUTION
25-734
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
December 3, 2024
To declare the existence of an emergency with respect to the need to approve Contract
No. NFPHC-RAD-23-C-0001 and Modification No. 1 thereto between the Not-
for-Profit Hospital Corporation, commonly known as United Medical Center, and
Washington Imaging Associates of Maryland, LLC to provide professional
medical services in the specific specialty of Radiology and to authorize payment
for the services received and to be received under the contract.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That
this resolution may be cited as the “Modification No. 1 to Contract NFPHC-RAD-23-C-
0001 between Not-for-Profit Hospital Corporation and Washington Imaging Associates
of Maryland, LLC Approval and Payment Authorization Emergency Declaration
Resolution of 2024”.
Sec. 2. (a) There exists an immediate need to approve Contract No. NFPHC-
RAD-23-C-0001 and Modification No. 1 thereto between the Not-for-Profit Hospital
Corporation (“Hospital”) and Washington Imaging Associates of Maryland, LLC, dba
Progressive Radiology (“Contractor”), to provide professional medical services in the
specific specialty of Radiology, and to authorize payment for the services received and to
be received under the contract.
(b) In June 2023, the Hospital began earnest negotiations with the Contractor to
provide radiology services through the wind-down period and closure of the Hospital. In
addition to addressing standard contract terms, the parties discussed how best to
effectuate a safe, yet expedient change in these critical services given requirements for
internal and external approvals.
(c) On June 28, 2023, after receiving all requisite approvals, the parties fully
executed a definitized contract that exercised only the 6 months of the base year (July 1,
2023 to December 30, 2023), in the amount of $630,000, but included the authority to
extend the engagement for up to 2 option years. These actions allowed the Contractor’s
performance to begin while Council approval to exercise the remaining 6 months of the
base year (December 31, 2023 to June 30, 2024) could be obtained. Council approval is
necessary because the extension would raise the value of the contract to $1.26 million.
(d) Based on this mutual understanding, the parties’ uninterrupted performance
under the contract continued beyond December 30, 2023. Upon realization that the
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contract was not properly extended; however, and that such error resulted in payment of
$420,000 for services provided after the expiration of the initial 6-month base period, the
parties, in substantial reliance upon the original intention and plan, worked quickly to
rectify the situation.
(e) On June 25, 2024, Proposed Modification No. 1 seeking to exercise the
remaining 6 months of the Base Year (December 31, 2023 to June 30, 2024) in the
amount of $630,000, was signed by the Contractor.
(f) To mitigate a possible reoccurrence, the Hospital instituted several safeguards,
within and across departments. For even greater visibility and Hospital Executive Team
awareness during the wind down and closure period, a standing report of contract periods
and expenditures for essential vendors and services is being explored.
(g) Council approval of Contract No. NFPHC-RAD-23-C-0001 and Modification
No. 1 thereto are necessary because the extension (December 31, 2023 to June 30, 2024)
would raise the total value of the contract to $1,260,000.00, which exceeds $1 million in
a 12-month period.
(h) Without Council approval, Washington Imaging Associates of Maryland,
LLC, cannot be paid for the critical services provided and to be provided in excess of $1
million.
Sec. 3. The Council determines that the circumstances enumerated in section 2
constitute emergency circumstances making it necessary that the Modification No. 1 to
Contract NFPHC-RAD-23-C-0001 between Not-for-Profit Hospital Corporation and
Washington Imaging Associates of Maryland, LLC Approval and Payment Authorization
Emergency Act of 2024 be adopted after a single reading.
Sec. 4. This resolution shall take effect immediately.
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