To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #23-776 with Datix (USA) Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to increase the payment limit for Contract #23-776 (as amended by Contract Amendment #23-776-1) with Datix (USA) Inc., a corporation, by $30,000, from $1,510,000, to an amount not to exceed $1,540,000, to continue to provide policy and incident reporting management, and governance software, maintenance and services for Contra Costa Health (CCH) with no change in the original term ending December 31, 2027, which extends for successive (1) year periods until terminated pursuant to its terms.
FISCAL IMPACT:
Approval of this payment limit increase will result in additional contractual service expenditures of up to $30,000 and will be funded as budgeted by the department in FY’s 2026-27, by 100% by Hospital Enterprise Fund I. (Rate increase)
BACKGROUND:
This Contract meets the needs of the County by providing a centralized electronic policy and incident reporting management system with governance, risk, and compliance modules, allowing for a comprehensive suite of tools that can capture peer reviews, feedback, incident reporting, maintain risk registers, infection surveillance reports, root cause analyst, complaints and claims through web-based forms and Safety Event Reporting System (SERS) software that meets accreditation regulatory compliance and audit reporting requirements; California, legislative Senate Bill No. 1301 (SB 1301), reporting and inspection requirements existing law provides for the inspection, licensure, and regulation of healthcare (and other) facilities by the Department of Health Care Services (DHCS), require the department to take various actions related to the reporting to or an investigation by, the department of any adverse event, as defined, that occurs, be reported to the department within (5) days of its discovery. The Health Care Quality Improvement Act of 1986 (HCQIA) sets forth certain standards for the professional review process. Datix’s RL6 incident reporting management software allows CCH to manage incident reporting and peer review requirements in compliance with HCQIA. The Converge module allows for Accreditation and Regulatory governance regarding SB 1301 health facilities reporting inspection requirements and PolicyStat, document, and policy management.
A summary of service contract deliverables, including measurable outcomes required of the vendor to be monitored by the department in compliance with Section III(B)(7) of the Purchasing Policy (AB600.4), includes maintenance and support services, and software updates and upgrades. CCH’s Information Systems contract monitoring staff oversee the contract to ensure that the performance measures are met. This Contract was approved by CCH Personnel as a specialized services contract to ensure there is no conflict with labor relations.
On May 9, 2023, the Board of Supervisors approved Contract Amendment #23-776 with Datix (USA) Inc., to implement contractor’s PolicyStat document and policy management product, and amend the Terms of Use Agreement, in part, that following the Initial Term (and the completion of the Minimum Commitment period, if applicable), maintenance service shall renew for successive one-year terms, until terminated per the terms of the agreement, through the period ending April 23, 2024.
On June 4, 2024, the Board of Supervisors approved Contract Amendment #23-776-1, under which the parties executed (1) Amendment #2 to the Terms of Use and (2) an Order Form to increase subscription licensing regarding county’s RL6 subscription, and consolidate the billing of the RL6 Risk, Feedback. PeerReview, RootCause, SafetyHuddles & Add-ons, Converge and PolicyStat product(s) to allow the contractor to continue to provide hosted policy, incident reporting management and SERS software and services through December 31, 2027. RL Solutions’ total cumulative liability for damages under the agreement is limited to the amount of payments actually paid by County to RL Solutions in the twelve (12) calendar months prior to the claim being made; except for indemnification or claims arising out of a breach of the business associate agreement, which are limited to one million dollars ($1,000,000).
Approval of this payment limit increase will allow the Contractor to continue to provide its RL6, Converge, PolicyStat and OneSource product and software maintenance services.
CONSEQUENCE OF NEGATIVE ACTION:
If this payment limit increase is not approved, CCH will lose access to this regulatory required policy and incident management system having a negative effect on the quality of patient care and safety.