Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with Organizational Intelligence, LLC for Financial Software Services
RECOMMENDATION:
title
Adopt a resolution authorizing an agreement with Organizational Intelligence, LLC to provide financial software services for the term of November 1, 2024 through October 31, 2027, with two optional 1-year renewal, in an amount not to exceed $1,762,000.
body
BACKGROUND:
San Mateo County Health (SMCH) including San Mateo Medical Center (SMMC), has been using Organizational Intelligence, LLC (OI) software since 2011. The software uses information from the County accounting system, payroll systems, and patient billing and encounters data from electronic health records to report financials and labor reports at cost center level. Managers can access this information directly for budget monitoring purposes, down to the actual posting level detail, to provide an enhanced level of monitoring and reporting. This system also provides a variety of payroll data on demand and cost accounting functionality to support budgeting and analysis at the service line level. In August 2024, SMCH and SMMC completed a Request for Proposals (RFP) for financial reporting software.
DISCUSSION:
In this RFP, OI was elevated due to its reporting and analysis design. OI’s software offers robust tools for cost accounting, a critical aspect of financial management for healthcare organizations. OI can handle complex accounting tasks, giving SMCH more control over financial data and enabling more accurate tracking of costs, resource allocation and budgeting. With the OI software, SMCH managers have a tool for monthly monitoring reports and convenient access to their financial data. This capability enhances decision-making, as managers can rely on up-to-date information to make financial choices that directly impact the efficiency and cost-effectiveness of the organization. SMCH finds this solution suitable for our healthcare organization and believes OI has the capability to provide reliable customer support. OI's cost accounting functionality also will help SMCH meet the state's new cost accounting readiness requirements.
County Attorney has reviewed and approved the resolution and agreement as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
The Information Services Department has reviewed and approved the IT component of this agreement.
The County’s Contract Compliance Committee has approved a waiver request for a five-year term for this agreement.
It is anticipated that number of days it takes to provide financial reporting to decision makers will be 13 business days or less.
PERFORMANCE MEASURE:
|
Measure |
FY 2023-24 Actual |
FY 2024-25 Estimated |
|
Number of days it takes to provide financial reporting to decision makers |
≤13 business days |
≤13 business days |
EQUITY IMPACT:
By having OI to continue providing SMCH/SMMC with their financial software, SMCH/SMMC will positively impact equitable health outcomes with proper financial management and addresses community need. For SMMC in particular, its patients span a wide spectrum of races, ethnicities, gender, and gender-identities. Within the past 18 months, the largest cohorts of specialty care patients at SMMC were female (52%), Hispanic or Latino (63%), and primarily Spanish speaking (55%).
FISCAL IMPACT:
The term of the agreement is November 1, 2024 through October 31, 2027, with two optional 1-year renewals. The amount of the agreement is not to exceed $1,762,000 for the 5-year term. Funds in the amount of $264,300 are included in the SMCH/SMMC FY 2024-25 Adopted Budget. Funds in the amount of $352,400 will be included in the SMCH/SMMC FY 2025-26 Recommended Budget.
The total value of the new contract has increased by 135% compared to the previous contract. The foundation system, comparable to the previous contract, increases by 4% annually. The rest of the increase is due to the addition of optional Software as a Service migration services and cost accounting consulting work. The added optional services represent 48% (or $850,000) of the contract total.
Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.
The portion of the contract for Health Administration totals to $204,616 and is funded from reimbursement from the Medi-Cal Administrative Activities program, Health Realignment, and funding from the divisions.
ATTACHMENT:
RFP Matrix