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: Amendment to the Agreement with Harmony Healthcare, LLC to Provide Coding Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Harmony Healthcare, LLC to add additional coding services and increase the amount of the agreement by $2,750,000, to an amount not to exceed $4,000,000.
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BACKGROUND:
San Mateo Medical Center's (SMMC) medical coding employees have been handling inpatient, outpatient surgery, observation, lab, and radiology services. SMMC has been utilizing contracted coding services to cover areas not covered by these coding employees and regulate the fluctuation of coding services needed to prevent backlog of accounts. In June 2021, SMMC completed a Request for Proposals for coding services and Harmony Healthcare, LLC (Harmony) was chosen based on their experience in the industry and competitive pricing, in comparison to the proposals that were submitted. On October 5, 2021, Harmony and the County entered into an agreement for coding services for the term of November 1, 2021 through October 31, 2026, in an amount not to exceed $1,250,000. On February 14, 2023, the County also entered into an agreement with CorroHealth, Inc. (CorroHealth) for coding services for the term of March 1, 2023, through February 28, 2026, in an amount not to exceed $4,500,000.
DISCUSSION:
With the Epic implementation phase currently in progress, SMMC has recently discovered CorroHealth's inability to continue to provide financial reporting functionalities and their incompatibility between CorroHealth's AI-driven coding process and Epic, when Epic goes live. Harmony has agreed to assume the coding service responsibilities currently being provided by CorroHealth. In order to c...
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