To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Rescind Prior Board Action Pertaining to Contract #23-625-3 with 3M Health Information Systems, Inc
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RESCIND Board action of October 12, 2021 (C.36), which pertained to a contract with 3M Health Information Systems, Inc.; and APPROVE and AUTHORIZE the Health Services Director, or designee, to execute Contract #23-625-3 containing mutual indemnification with 3M Health Information Systems, Inc., a corporation, in an amount not to exceed $296,277, for a hosted patient classification and claims software system and support services, for Contra Costa Health (CCH) for the period October 5, 2021 through May 1, 2025.
FISCAL IMPACT:
This action will result in no additional contractual expenditures.
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, HIPAA, 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 (C.36), the Board of Supervisors approved Contract #23-625-3, 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.
This Board Order adjusts the term end date from October 4, 2024, to May 1, 2025, as previously approved by the Board on October 12, 2021 (C.36), to match the executed agreement.
CONSEQUENCE OF NEGATIVE ACTION:
If the recommendation is not approved, the prior Board action will stand and will be inconsistent with the contract term agreed upon final execution of the agreement disallowing payment of the related invoices through the term ending May 1, 2025.