To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment Limit increase for Contract #23-625-3 with Solventum Health Information Systems, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County a payment limit increase in Master Software and Services Agreement (#23-625-3) with Solventum Health Information Systems, Inc., a Maryland corporation, effective January 28, 2025, to increase the payment limit of (Contract #23-625-3) by $36,798, from $296,277 to a new payment limit of $333,075, for a hosted patient classification and claims software system and support services, for Contra Costa Health (CCH) with no change in the term of October 5, 2021 through May 1, 2025.
FISCAL IMPACT:
Approval of this action will result in additional annual expenditures of up to $36,798 and will be funded as budgeted by the department in FY 2024-25, 100% by Hospital Enterprise Fund I). (No rate increase)
BACKGROUND:
This Contract meets the needs of the County’s patient population by providing a health information system that includes annuity software for performing claims reviews and provider comparisons. 3M’s Grouper Plus Content Services (GPCS) system includes GPCS All Patient Refined - Diagnosis Related Groups (APR DRG) Grouper & Reimbursement California (CA) Medicaid a classification system, which will assist the Contra Costa Health Plan (CCHP) to assign patients into meaningful groups necessary for claims reimbursement. 3M APR DRGs classify patients based on clinical similarities and their use of hospital resources. 3M’s Grouper Plus Content Services provides access to comprehensive grouping, editing, and reimbursement content, utilizing a modern cloud-based service that leverages web services and cloud technology to provide this content securely. The standardized implementation of this system allows for a solution for an increasingly complex and dynamic regulatory and payment environment. 3M Transaction software has afforded CCHP the ability to calculate accurate claim pricing and CCH the capability to improve productivity and compliance measures for its Contra Costa Regional Medical Center and Health Clinics. Service deliverables include optimization of clinical documentation workflows, increased speed of revenue cycle, HIPPA, and Regulatory Compliance, and meeting meaningful use and electronic health records requirements.
This Contract obligates the County to indemnify 3M Health Information Systems, Inc., from any claims or damages arising out of County's use of the deliverables produced by the software and systems. This contract limits the direct damages the County can recover from 3M to the amount paid by the County in the 12 months preceding any claim. The County may terminate the contract for an uncured breach by 3M and if the County fails to appropriate funds for an electronic patient classification and claims software system. This contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. This contract contains mutual indemnification.
On October 12, 2021, the Board of Supervisors approved Contract #23-625-3 with 3M Health Information Systems, Inc., in an amount not to exceed $296,277, to implement the hosted patient classification and claims software system for CCH, for the provision of software license and support services for the period October 5, 2021 through October 4, 2024.
On May 14, 2024, the Board of Supervisors approved (Contract #23-625-4) with 3M Health Information Systems, Inc., to correct the termination date (to reflect that of the fully executed agreement) ending May 1, 2025. On May 24, 2024, 3M Health Information Systems, Inc., issued notice that its name changed to Solventum Health Information Systems, Inc.
Approval of (this action) will update the contracting party from 3M Health Information Systems, Inc., to Solventum Health Information Systems, Inc., and increase the contract payment limit to allow Contractor to continue to provide its hosted patient classification and claims software system and support services, for Contra Costa Health (CCH) with no change in the term ending May 1, 2025.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, the contracting party will not be updated to reflect the corporations name change, the payment limit will not be increased, and the contractor will suspend services; per Section 8.7 (Late Payment/Suspension) of the agreement.