To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #23-702-2 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 Add-On Order (County Contract Amendment #23-702-2) with Change Healthcare Technologies, LLC, a limited liability company, effective March 22, 2026, to amend Contract #23-702 (as amended by 23-702-1), to increase the payment limit by $129,754 from $410,911 to a new payment limit of $540,665, with no change in the original term ending March 22, 2026, and extend the contract term for successive (1) year periods until terminated, for additional cardiology software for Contra Costa Regional Medical Center (CCRMC).
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional expenditures of up to $129,754 and will be funded as budgeted by the department in FY’s 2026-27, by 100% Hospital Enterprise Fund I.
BACKGROUND:
Change Healthcare Technologies, LLC (CHC) Cardiology Information System (CIS) is a single enterprise platform used for cardiovascular imaging and result reporting. CCRMC utilizes CHC’s CIS platform and Cardiology Picture Archiving and Communications System (CPACS) software to streamline data management of images and cardiology results data into a single CIS platform, allowing for the aggregation of patient data. CIS is fully integrable with CCRMC’s Electronic Medical Records System (EPIC) so that orders entered into EPIC are electronically submitted to the CIS and results are then sent back to EPIC after reviewing by clinical staff. Health Services Personnel approved this action to ensure no conflicts with labor relations. This Contractor was approved by the Public Works Department’s Purchasing Division on December 15, 2025, in compliance with Administrative Bulletin 600.3 requirements. A summary of service contract deliverables, including measurable outcomes required of the Contractor to be monitored by the department in compliance with Section III (B)(7) of the Purchasing Policy include replacement of (4) virtual CPACS servers, Cardiology Version 15.x upgrade services, load balancer and multi-website configuration.
On March 23, 2021, the Board of Supervisors approved Contract #23-702 with Change Healthcare Technologies, LLC., in an amount not to exceed $410,911 for the provision of cardiology software and related services for the period from March 23, 2021 through March 22, 2026.
On August 18, 2023, the Health Services Director designee, approved Add-On Order (Contract Amendment #23-702-1) with Change Healthcare Technologies, LLC., effective August 22, 2023 for additional CPACS services with no change in the payment limit or term.
Under this Add-On Order (County Contract #23-702-2), the parties will execute an order form to upgrade four (4) virtual servers (database, web, application and test server(s)) including implementation, upgrade services and software under the existing Master Relationship Agreement (County Contract #23-702) which requires the County to indemnify Change Healthcare Technologies, LLC for claims arising from County’s use or inability to use the software, obligating each party to indemnify the other party against third party claims arising out of any negligent or wrongful acts by a party in the performance of the agreement.
Approval of this Add-On Order (County Contract #23-702-2) allows (i) the Contractor to upgrade CCRMC’s existing cardiology software (Change Health’s Cardiology v15.x Upgrade with Service Refresh), (ii) clarifies the Master Relationship Agreement renews for automatic (1) year terms until terminated per the terms of the agreement, and (iii) allows the Division to pay outstanding invoices to Change Healthcare Technologies for Service Period 9/30/2025 - 09/26/2026. Change Health has been providing cardiology software and related services to CCRMC for several years. The Division received invoice(s) (7004266172, 173, and 174) in September 2025. However, the invoices exceeded the contract payment limit. As such, the contractor has not been paid in full for prior software maintenance and services provided and is entitled to payment for the reasonable value of its services under the equitable relief theory of quantum meruit. That theory provides that where a contractor has been asked to provide services and the contractor does so to the benefit of the recipient, the contractor is entitled to recover the reasonable value for those services. In this case, Change Health continued to provide CIS to CCRMC after the contract payment limit was reached.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, CCRMC will lose access to this specialized cardiology information system negatively affecting CCRMC's CPACS, and patient care.