To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Contract Amendment #23-625-6 with Solventum Health Information Systems, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Interim Health Services Director, or designee, to execute on behalf of the County Contract Amendment #23-625-6 with Solventum Health Information Systems, Inc., a corporation, effective, May 1, 2025, to amend Contract #23-625-3 (as amended by County Contract #23-625-5), to increase the payment limit by $285,797, from $333,075 to a new payment limit of $618,872, and extend the termination date from May 1, 2025, to May 1, 2028, and for successive one (1) year term(s) thereafter until terminated, for additional hosted patient classification and claims software system and support services for Contra Costa Health (CCH).
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional expenditures of up to $285,797 over a three-year period and will be funded as budgeted by the department in FY’s 2025-28, 100% by Contra Costa Health Plan Enterprise Fund II. (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. Solventum Health Information Systems, Inc’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. Solventum Health Information Systems’ APR DRGs classify patients based on clinical similarities and their use of hospital resources. Solventum Health Information Systems’ 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 deliver this content securely. This solution allows for an increasingly complex and dynamic regulatory and payment environment. Solventum Health Information Systems’ transaction software allows CCHP to calculate accurate claim pricing and CCH to improve productivity and compliance measures for its Contra Costa Regional Medical Center and Health Clinics. A summary of service contract deliverables, including measurable outcomes required of the Contractor to be monitored by the department, including in compliance with Section III(B) (7) of the Purchasing Policy include optimization of clinical documentation workflows, increased speed of revenue cycle, Health Information Probability and Accountability Act of 1996 (HIPAA), and Regulatory Compliance, and meeting meaningful use and electronic health records requirements.
This Contract obligates the County to indemnify Solventum 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 Solventum Health Information Systems to the amount paid by the County in the twelve months preceding any claim. The County may terminate the contract for an uncured breach by Solventum Health Information Systems 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 Master Software and Services Agreement #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, and 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.
On January 28, 2025, the Board of Supervisors approved Contract #23-625-5 with Solventum Health Information Systems, Inc., to increase the payment limit by $36,798 to a new payment limit of $333,075, to continue to provide its hosted patient classification and claims software system and support services, for CCH with no change in the term ending May 1, 2025.
Approval of this Contract Amendment will increase the Contract payment limit, clarify that the license term shall automatically renew for successive one-year renewal term(s) until terminated per the terms of the Contract, allowing Contractor to continue to provide its hosted patient classification and claims software system and support services to CCH through May 1, 2028. This contract is delayed due to the Contractor needing to submit required forms to CCH.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, the payment limit will not be increased, and the Contractor will suspend services; per Section 8.7 (Late Payment/Suspension) of the agreement, thus resulting in a negative effect on patient care and outcomes.