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 Craneware, Inc. to Provide Charge Description Master Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Craneware, Inc. to provide charge description master software and professional services, extending the term of the agreement through July 31, 2024, and increasing the amount payable by $195,739, to an amount not to exceed $727,271.
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BACKGROUND:
The charge description master (CDM) is the source electronic document listing prices for all services and supplies San Mateo Medical Center (SMMC) provides for its patients. Craneware Inc. (Craneware) has been providing a CDM software application to SMMC since 2010, and the County’s most recent contract with Craneware is for a term that began on August 1, 2014. The agreement has been amended three times since 2014, and the most recent amendment was approved by this Board on June 25, 2019, with an effective date of March 1, 2019, and a termination date of July 31, 2023. The latter amendment added specific supplemental licenses, products, and professional services related to the CDM software package.
DISCUSSION:
San Mateo County Health is implementing a new electronic health record, Epic, with a projected go-live date of November 2024. Epic’s implementation will require reconfiguring and consolidating SMMC’s current CDM by October 2023. In preparation, SMMC needs the services of Craneware to perform a thorough review of the current CDM for billing compliance, pharmacy codes, and supplies maintenance. This review will ensure that the CDM built in Epic is valid, accurate, and complete.
SMMC continues to need CDM software and professional services after the transition to Epic and is issuing a Request for Proposals (RFP). The current recommendation for a one-year extension of the Craneware agreement will allow time to complete the RFP process while ensuring the continuity of CDM updates during the Epic implementation.
County Attorney has reviewed and approved the resolution and amendment 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 County’s Contract Compliance Committee has approved a waiver request for a ten-year term for this amendment.
It is anticipated that there will be less than 2% errors in the CDM system.
PERFORMANCE MEASURE:
|
Measure |
FY 2022-23 Estimated |
FY 2023-24 Projected |
|
Percentage of errors in the CDM system |
<2% |
<2% |
FISCAL IMPACT:
The term of the amended agreement is August 1, 2014, through July 31, 2024. The amount of the amended agreement is not to exceed $727,271 for the ten-year term. The amendment increases the amount payable under the agreement by $195,739. Funds in the amount of $195,739 are included in the SMMC FY 2023-24 Recommended Budget.
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 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.