REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Funding Increase to Agreement with Inovalon Provider, Inc.
End
RECOMMENDATION(S)
Recommendation
Approve a funding increase to Agreement No. 23-46 with Inovalon Provider, Inc., increasing the agreement amount by $10,000, from $83,955 to $93,955, for secure exchange server access to Medicare and Medicaid services, with no change to the contract term of 60 months beginning February 1, 2023 through January 31, 2028, automatically renewing each year until terminated by either party.
(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 cost of $10,000 is funded by State Medi-Cal, Federal Medicare, private insurance, and other departmental revenues. 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 requested funding increase is necessary to keep pace with inflation and the rising costs of the software and services provided by Inovalon. An additional $10,000 will fund higher operating expenses, including labor, technology infrastructure, cybersecurity, software maintenance, and ongoing server support through the current contract period.
The funding increase will grant ARMC to maintain access to the Ability Ivan’s Now server, which supports the secure submission and processing of Medicare claims using ARMC and provider National Provider Identifier (NPI) numbers. Continued server access is necessary to support ARMC’s Medicare billing operations and compliance with Centers for Medicare & Medicaid Services (CMS) requirements.
The Ability Ivan’s Now server allows ARMC to securely submit claims in real-time using the appropriate NPI numbers, check claim status, identify and correct claim errors, and support timely reimbursement. Without continued access to the server, ARMC could experience disruptions in Medicare claim submissions and processing, potentially resulting in reimbursement delays and impacts to daily billing operations.
On January 24, 2023 (Item No. 15), as the result of a non-competitive procurement, the Board of Supervisors (Board) approved Agreement No. 23-46 with Ability Network, Inc., including non-standard terms, for secure exchange server access to Medicare and Medicaid services in the amount of $83,955, for the contract period of 60 months beginning February 1, 2023, through January 31, 2028, automatically renewing each year until terminated by either party.
On February 27, 2024 (Item No. 9), the Board approved Amendment No. 1 to Agreement No. 23-46, changing the legal name of the service provider from Ability Network, Inc. to Inovalon Provider, Inc., retroactively effective September 27, 2023, with no changes to the contract amount of $83,955 or contract period of 60 months beginning February 1, 2023, through January 31, 2028, automatically renewing each year until terminated by either party.
ARMC recommends approval of the funding increase to continue providing for the safety, health and social services needs of county residents by maintaining access to the Medicare and Medicaid exchange services necessary to submit claims timely and prevent delays in reimbursement.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on August 10, 2026; Purchasing (Veronica Pedace, Buyer III, 387-2464) on August 11, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on August 31, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on August 31, 2026.