REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Memorandum of Understanding with the California Department of Justice for Continued Access to the Controlled Substance Utilization Review and Evaluation System
End
RECOMMENDATION(S)
Recommendation
1. Approve a Memorandum of Understanding with California Department of Justice, California Justice Information Services Division, Justice Data and Investigative Services Bureau Version 3.1, for access to the Controlled Substance Utilization Review and Evaluation System Information Exchange Web Services, including non-standard terms, in an amount not to exceed $50,000, for the contract term beginning July 1, 2026 through June 30, 2028.
2. Authorize the Chief Information and Digital Transformation Officer and Epic Systems Manager to execute any non-substantive amendments to Exhibit E included as part of the Memorandum of Understanding, subject to review by County Counsel.
3. Direct the Chief Information and Digital Transformation Officer or Epic Systems Manager to transmit any non-substantive amendments to Exhibit E, to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 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 not to exceed amount of $50,000 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) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The Controlled Substance Utilization Review and Evaluation System (CURES) is a database containing information about Schedule II, III, and IV controlled substance prescriptions dispensed to patients, as reported by the dispensing pharmacy, clinic or other dispenser pursuant to Health and Safety Code section 11165(d). CURES grants authorized health care practitioners and pharmacists access to query the CURES database to assist in efforts to ensure appropriate prescribing, ordering, administering, furnishing, and dispensing of controlled substances. This Memorandum of Understanding (MOU) will allow ARMC to integrate CURES with the Epic Electronic Health Record system.
The MOU includes a one-time connectivity fee and mandatory maintenance fees to support CURES. While Exhibit D identifies the one-time fee, the California Department of Justice (DOJ) has not yet finalized the ongoing maintenance fee structure. ARMC is requesting a not-to-exceed amount of $50,000 over the two-year term to ensure continued CURES access and cover any future State-established maintenance fees. The amount requested is based on the previous spend.
The Confidentiality and Security Compliance Statement is an attachment to the MOU and requires the signatures of the Chief Information and Digital Transformation Officer and Epic Systems Manager.
The MOU contains non-standard and missing terms as follows:
1. The MOU does not require that the DOJ indemnify the County, as required by County Policy 11-07.
• The County standard contract indemnity provision requires that the contracting party indemnify, defend, and hold County harmless from third-party claims arising out of the acts, errors or omissions of any person.
• Potential Impact: DOJ is not required to defend, indemnify or hold the County harmless from any claims, including indemnification for claims arising from DOJ’s negligent or intentional acts. If the County is sued for any claim, the County may be solely liable for the costs of defense and damages.
2. The MOU does not require DOJ to meet the County’s insurance standards as required pursuant to County Policies 11-07 and 11-07SP.
• County policy requires that a contracting party carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department and as set forth in County policy and in the County standard contract.
• Potential Impact: The County has no assurance that DOJ will be financially responsible for claims that may arise under the MOU.
ARMC recommends approval of this item, including non-standard terms, as this will provide for the safety, health, and social service needs of County residents by providing the ability to quickly access all patient prescription records of controlled substances throughout the State of California.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniella Hernandez, Deputy County Counsel, 387-5455) on May 20, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on June 5, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on May 29, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on June 4, 2026.