To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Amendment with Medical Information Technology, Inc.
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to increase the payment limit for Contract #23-443-2 (as amended by Contract Amendments #23-443-3 and #23-443-4) with Medical Information Technology, Inc., a corporation, by $429,300, from $867,000, to an amount not to exceed $1,296,300, to continue to provide software license and maintenance services for its Health Care Information Systems (HCIS) solution, and clarify the contract term continues in effect until terminated pursuant to its terms.
FISCAL IMPACT:
Approval of this payment limit increase will result in additional expenditures of up to $429,300 and will be funded as budgeted by the department 100% by Hospital Enterprise Fund I.
BACKGROUND:
This Contract meets the needs of the County by providing a real-time, intuitive solution that streamlines the supply chain, materials and billing management, and reimbursement processes in connection with patient data retrieval. Contra Costa Health (CCH) has been contracting with Medical Information Technology, Inc. under a Program License Agreement dated July 16, 1992, and a HCIS Software Agreement dated April 28, 2003, under which the County purchased software modules from the Contractor. Modules in use include Laboratory Module, Microbiology Module, Anatomical Pathology Module, Blood Bank Module, Materials Management Module, Data Repository, and MAGIC Operating Systems (Disaster Recovery). CCH’s Clinal Laboratory uses these modules, which allow an exchange of and real-time access to patient medical information among the clinical laboratories.
This Contractor was approved by the Public Works Department’s Purchasing Division on June 29, 2026 as a sole source. 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 includes immediate patient lab test data by way of an interface directly with the Epic, the County’s medical record(s) system, system availability, and County’s access to data mining. This Contract was approved by CCH Personnel to ensure no conflicts with labor relations.
On February 11, 2020, the Board of Supervisors approved Contract #23-443-2, executing a new HCIS Agreement that allowed the contractor to implement its Accounts Payable supply chain and cost management modules and provide three (3) years of maintenance for the management of reimbursements and billing, and reduce supply chain costs, maintain quality, and build profitability through materials management of real-time inventory and surgical tracking, with business analytics to measure budgetary and contract performance to identify areas for cost-saving opportunities for Contra Costa Regional Medical Center from February 1, 2020, through January 31, 2023.
On February 28, 2023, the Board of Supervisors approved Contract Amendment #23-443-3 with Medical Information Technology, Inc., to increase the payment limit by $36,000 to an amount not to exceed $607,000 and extend the term through January 31, 2026, for the continuance of software license and maintenance for its HCIS solution.
On November 11, 2024, the Board of Supervisors approved Contract Amendment #23-443-4 with Medical Information Technology, Inc., to increase the payment limit by $260,000 to an amount not to exceed $867,000, for additional software license and maintenance services for its HCIS solution with no change in the term ending January 31, 2026.
Approval of this payment limit increase will allow the Contractor to continue to provide software license and maintenance services through January 31, 2029, and clarifies the contract continues until terminated by the terms of the agreement.
CONSEQUENCE OF NEGATIVE ACTION:
If this payment limit increase is not approved, real-time disruptions to CCH Clinical Laboratories and Epic patient data exchange may result in data loss (causing) diminished cost-saving opportunities regarding supply chain management. The undesirable effect may be decreased patient outcomes and financial loss for the County.