To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #23-652-2 with Change Healthcare Technologies, LLC
☒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 Amendment No. 2 (Contract Amendment #23-652-2) with Change Healthcare Technologies, LLC, a limited liability company, effective August 1, 2025, to amend Contract #23-652 (as amended by Amendment No. 1 (Contract Amendment #23-652-1)), to increase the payment limit by $3,822,593, from $2,075,995 to a new payment limit of $5,898,588, and extend the termination date from January 21, 2026 to January 21, 2029, for additional products and InterQual software, maintenance and support services for Contra Costa Health (CCH).
FISCAL IMPACT:
Approval of this Amendment will result in additional expenditures of up to $3,822,593 and will be funded as budgeted by the department in FYs 2025-29, by 100% Hospital Enterprise Fund I.
BACKGROUND:
Contra Costa Regional Medical Center (CCRMC) uses InterQual software and clinical content for performing medical necessity reviews. This software also helps determine appropriateness and level of admission, approximate length of stay, and determination of continued stay. The Contra Costa Health Plan (CCHP) has used InterQual since (at least) 2020 to ensure the appropriate utilization of resources and for medical necessity criteria. This Contractor was approved by the Public Works Department’s Purchasing Division on July 15, 2025. CCH will monitor measurable service contract deliverables regarding CCH’s access to the software maintenance and support services in compliance with Section III(B)(7) of the Purchasing Policy. CCH Personnel approved this contract renewal to ensure no conflict with labor relations.
On December 8, 2020, the Board of Supervisors approved Contract #23-652, with Change Healthcare Technologies, LLC, in an amount not to exceed $878,803 for the provision of software licenses and services regarding its InterQual software, for the period from January 22, 2020 through January 21, 2023.
On February 7, 2023, the Board of Supervisors approved Contract Amendment #23-652-1 (Amendment No. 1) with Change Healthcare Technologies, LLC, effective January 21, 2023, to increase the payment limit by $1,197,192 to a new payment limit of $2,075,995, and extend the term through January 21, 2026 for additional software licensing, support and services.
Approval of this Amendment No. 2 (Contract Amendment #23-652-2) will renew services and allow the Contractor to provide additional products and InterQual software licensing and services through January 21, 2029. The Division is requesting a retroactive effective date for this Amendment due to delays caused by negotiations between the parties.
CONSEQUENCE OF NEGATIVE ACTION:
If this Amendment is not approved, CCH will be out of compliance with federal and state regulatory bodies regarding CCRMC and CCHP case management and utilization review. The potential of non-compliance may result in adverse effects such as financial losses, license revocations, business disruptions, and poor quality of patient care.