Special Notice / Hearing: None
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Viral Mehta, Director, LEAP Institute
Rich Bailey, Chief Information Officer, San Mateo County Health
Subject: Amendment to the Agreement with KaiNexus Inc to Extend the Term an Additional Five Years and to Increase the County’s Fiscal Obligation
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with KaiNexus Inc to extend the term an additional three years for a term of December 10, 2019 through December 9, 2029, and increase the County’s fiscal obligation by $557,267 to an amount not to exceed $1,380,242.
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BACKGROUND:
Problem-solving and continuous improvement have been foundational elements of San Mateo County Health (SMCH) for many years. The KaiNexus Inc (KaiNexus) platform has been in place since 2019 to support SMCH staff in effectively managing all problem-solving activities, including those related to safety, such that all problems are seen and solved to root, and solutions are spread systematically. Currently, 2,281 SMCH users are using this application.
DISCUSSION:
KaiNexus is being utilized in nearly all divisions within SMCH: San Mateo Medical Center (SMMC), Public Health, Policy, and Planning, Aging and Disability Services, Behavioral Health Recovery Services (BHRS), Correctional Health Services, and Emergency Medical Services, with SMMC and BHRS using it for mandatory reporting requirements. SMCH recently initiated expansion to Family Health Services, which started a pilot and are also planning to implement division-wide over the coming months.
SMCH and Health Information Technology released a Request for Proposals solicitation in March 2026, and KaiNexus was the selected vendor based on its unique and specific focus on identifying and implementing improvement opportunities while using the methodology adopted by SMCH.
On December 12, 2019, the County entered into an agreement with KaiNexus for the term of December 10, 2019 through December 9, 2022 in an amount not to exceed $316,800 (“Agreement”). The parties have amended the Agreement twice, extending the term through December 9, 2026 and increasing the maximum fiscal obligation to $822,975. Staff recommends entering into a third amendment, extending the term an additional three years through December 9, 2029 and increasing the not to exceed amount to $1,380,242.
The third amendment and resolution have been reviewed and approved by the County Attorney as to form.
The Technology Services Department has reviewed and approved the IT component of this third amendment.
The resolution contains the County’s standard provisions allowing amendment of the County’s fiscal obligations by a maximum of $25,000 (in aggregate).
It is anticipated that 95% of requests (through KaiNexus) will be acknowledged by the vendor within two days, with clear timeframes for next steps (if any needed) in the response.
PERFORMANCE MEASURE:
|
Measure |
FY 2026-27 Estimated |
FY 2027-28 Projected |
|
Percentage of requests (through KaiNexus) acknowledged by the vendor within two days, with clear timeframes for next steps (if any needed) in the response |
95% |
95% |
Community Impact:
The improvement work application provides a scalable, user-friendly platform that fosters a culture of continuous improvement and collaborative problem-solving in healthcare environments. Designed to address operational inefficiencies, patient care gaps, and staff engagement challenges, the platform empowers SMCH to identify, analyze, and resolve issues in real time while promoting data-driven decision-making and sustained quality improvement.
FISCAL IMPACT:
The term of this amended Agreement is December 10, 2019 through December 9, 2029. The amended Agreement amount is increased by $557,267, for an amount not to exceed $1,380,242 for the seven-year term.
This Agreement is entirely funded as part of the Health Administration budget, which is covered by proportional contributions from all SMCH divisions, which may include some Net County Cost, depending on the composition of each division’s contribution.
ATTACHMENT:
RFP Matrix