REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 20, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with OptumInsight, Inc. to Change Billing Entity and Terminate Sales Order
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Agreement No. 24-1298 with OptumInsight, Inc., for computing, processing, subscription, hosting, implementation, maintenance, professional, and consulting services, software and equipment for a Picture Archiving and Communication System and a Cardiology Picture Archiving and Communication System, to change the billing entity to Change Healthcare Technologies, LLC, and terminate Sales Order IWS-267858, effective June 20, 2025, with no changes to the not-to-exceed amount of $4,614,752, or the agreement period of May 26, 2025 through May 25, 2030.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Amendment No.1 does not change the agreement’s not-to-exceed amount of $4,614,752, which is funded by State Medi-Cal, federal Medicare, private insurance, and other departmental revenue. Funding sources may change in the future pending any legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
On December 17, 2024 (Item No. 18), as the result of Request for Proposal No. ARMC124-ARMC-5332, the Board of Supervisors (Board) approved Agreement No. 24-1298 (Agreement), which included the Solution Order OPTY-714244 (Solution Order) with OptumInsight, Inc., (Optum) including non-standard terms, for computing, processing, subscription, hosting, implementation, maintenance, professional, and consulting services, software and equipment for a Picture Archiving and Communication System and a Cardiology Picture Archiving and Communication System, in the not-to-exceed amount of $4,614,752, for the agreement period of May 26, 2025 through May 25, 2030.
The Agreement and Solution Order with Optum provide for implementation services, software licenses with maintenance and support, consulting and training services, and equipment that allows ARMC to utilize a Picture Archiving and Communication System (PACS) and a Cardiology Picture Archiving and Communication System (CPACS) for the storage, retrieval and transmittal of medical images used for patient care. PACS and CPACS are a medical imaging software solution that handle various image formats such as mammograms, magnetic resonance, ultrasound, echocardiogram, computed tomography and digital radiography.
The Optum solution was originally purchased as on-premises equipment and software (Optum Solution) including Datatility equipment and software (Datatility) for data backup. The Optum Solution transitioned to cloud-based storage on June 20, 2025, at which time ARMC stopped using Datatility services, and data utility charges no longer apply. However, Datatility was not removed from the Agreement, and ARMC continued to receive invoices for Datatility services. As a result, the amendment reflects the termination of the Datatility Sales Order IWS-267858 as of June 20, 2025. The Amendment also provides for payment of $18,943.33 for prior Datatility services provided from March 21, 2025 through April 20, 2025, which is included in the Agreement’s existing not-to-exceed amount of $4,614,752.
ARMC first notified Change Healthcare Technologies, LLC (Change Healthcare) on August 20, 2025, that it continued to receive invoices for Datatility services. Change Healthcare confirmed that ARMC should not have continued to be invoiced for Datatility services after the transition to cloud-based storage. Following review with its legal team, Change Healthcare provided the proposed amendment to ARMC on March 12, 2026, which notified ARMC of the change in billing entity from Optum to Change Healthcare. ARMC initiated the contract review process on April 14, 2026. Therefore, ARMC recommends retroactive approval of the termination effective June 20, 2025.
This Amendment also recognizes and permits Optum’s affiliate, Change Healthcare, to perform Optum’s obligations under Solution Order OPTY-714244 and provided that references to Optum under the Solution Order will include Change Healthcare. Invoices, credits, and payments may also be issued by Change Healthcare for fees due under the Solution Order.
ARMC recommends the approval of the Amendment with Optum to continue to provide for the safety, health and social service needs of County residents by providing efficient access to medical images for patient care.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kaleigh Ragon, Deputy County Counsel, 387-4725) on October 1, 2026; Purchasing (Veronica Pedace, Buyer III, 387-2464) on September 25, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on September 25, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on October 1, 2026.