REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 12, 2023
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Change Healthcare Technologies, LLC for a Cardiology Picture Archiving and Communication System Training Course
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 15 to Agreement No. 06-141 with Change Healthcare Technologies, LLC for a Cardiology Picture Archiving and Communication System training course, increasing the contract amount by $3,600, from $10,922,337 to a total not-to-exceed $10,925,937, with no change to the contract period of February 7, 2006 through May 25, 2025.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
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). The one-time additional cost of $3,600 for this training course is funded by State Medi-Cal, Federal Medicare, private insurances, 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) 2023-24 budget.
BACKGROUND INFORMATION
Amendment No. 15 to Agreement No. 06-141 with Change Healthcare Technologies, LLC (CHC) will allow ARMC to purchase CHC’s Cardiology Picture Archiving and Communication System (CPACS) training course. The training course is a one-time purchase and will provide the lead CPACS analyst at ARMC with proper training in the current CPACS software. CPACS is a medical technology platform used for storing and sharing medical imaging studies that are generated by cardiologists. The CPACS system integrates with the Electronic Health Record (EHR) to support timely and efficient patient care through the accessibility, management and storage of cardiac related images, reports, and other documentation. CPACS differs from Picture Archiving and Communication System (PACS) in that PACS is a medical imaging technology used to store and digitally transmit electronic images and clinically-relevant reports; whereas CPACS focuses mainly on the storage of cardiology-centric images and supports reporting for echocardiography (echo) measurements, which is not available with PACS.
On February 7, 2006 (Item No. 51), as the result of a competitive process, the Board of Supervisors (Board) approved Agreement No. 06-141 (Agreement) with McKesson Technologies, Inc. (McKesson) in the amount of $4,055,970, which included the purchase of PACS, for the period of February 7, 2006, through February 6, 2011, with automatic annual renewals unless terminated by either party at least six months prior to the end of the applicable renewal term.
On December 3, 2013 (Item No. 4), the Board approved Amendment No. 1, effective December 3, 2013, to the Agreement with McKesson for the system maintenance and support of PACS, in the amount of $1,391,103, extending the term through December 2, 2016.
On May 19, 2015 (Item No. 8), the Board approved Amendment No. 2 to the Agreement with McKesson, resulting from a formal Request for Proposals (RFP MCR13-18) for a new PACS and CPACS. Six companies submitted proposals in response to the RFP, but McKesson, as the lowest responsive bidder, was recommended for award. Rather than initiate a new agreement, McKesson required an amendment to the existing Agreement.
The Board has since approved 14 amendments to this Agreement, which include the continuation of systems maintenance on existing PACS hardware, issuing new contract supplements for the purchase of new PACS and CPACS Systems, additions to contract costs, an assignment change of the Agreement from McKesson to CHC, and a change of off-site archive storage from Iron Mountain to Datatility. The subsequent amendments and schedule of approvals since the initial Agreement are as follows:
|
Contract Amendments |
Board Date |
Item Number |
|
1 |
December 13, 2013 |
4 |
|
2 |
May 19, 2015 |
8 |
|
3 |
December 6, 2016 |
20 |
|
4 |
January 24, 2017 |
8 |
|
5 |
May 23, 2017 |
17 |
|
6 |
August 21, 2018 |
10 |
|
7 |
August 21, 2018 |
10 |
|
8 |
April 21, 2020 |
9 |
|
9 |
August 25, 2020 |
13 |
|
10 |
April 20, 2021 |
7 |
|
11 |
May 18, 2021 |
17 |
|
12 |
March 15, 2022 |
16 |
|
13 |
March 15, 2022 |
16 |
|
14 |
June 13, 2023 |
16 |
ARMC recommends approval of the Amendment to provide for the safety and health needs of County residents as CPACS facilitates efficient communication between cardiologists, healthcare providers and patients.
PROCUREMENT
The Purchasing Department supports this non-competitive procurement based on an existing agreement to ensure continuity of service for CPACS. Before the end of the contract term in 2025, ARMC will conduct an RFP for the services contained in the current Agreement and subsequent amendments.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy Counsel, 387-5455) on July 17, 2023; Purchasing (Ariel Gill, Buyer, 777-0722) on July 19, 2023; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on July 28, 2023; Finance (Jenny Yang, Administrative Analyst, 387-4884) on July 31, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on July 31, 2023.