Title
Authorize payment of $475,000 to Medical Information Technology, Inc. (MEDITECH), for cost of annual routine maintenance services on the various MEDITECH electronic health record software system modules implemented at Natividad Medical Center in the amount not to exceed $450,595 and for cost of new interfaces and enhancements in the amount of $24,405, for the period of July 01, 2025 through June 30, 2026 and subject to the terms and conditions of the parties’ Healthcare Information System Software Agreement dated July 19, 2004.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize payment of $475,000 to Medical Information Technology, Inc. (MEDITECH), for cost of annual routine maintenance services on the various MEDITECH electronic health record software system modules implemented at Natividad Medical Center in the amount not to exceed $450,595 and for cost of new interfaces and enhancements in the amount of $24,405, for the period of July 01, 2025 through June 30, 2026 and subject to the terms and conditions of the parties’ Healthcare Information System Software Agreement dated July 19, 2004.
SUMMARY/DISCUSSION:
MEDITECH is Natividad Medical Center’s primary system for patient registration, clinical documentation, physician ordering, patient electronic health records, and financial records. The MEDITECH System consists of numerous modules and interfaces that all have required ongoing monthly maintenance fees to support the software. As additional modules, features, enhancements, and interfaces are added to Natividad Medical Center’s MEDITECH system, corresponding maintenance fees are incurred. Most of the routine modules as well as smaller upgrades, features and enhancements all have monthly maintenance fees.
The Healthcare Information System Software Agreement, the County’s original services agreement with MEDITECH, has a perpetual term and does include a 60-day notice to terminate clause. This amendment will extend the term by 1 additional year.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel has reviewed and approved this request, and the Auditor-Controller has reviewed and approved as to payment provisions. The request has also been reviewed and approved by Natividad Medical Center’s Finance Committee and by its Board of Trustees on May 5, 2025.
FINANCING:
The cost for this request is $475,000, all of which is included in the FY25-26 Recommended Budget. Funding will be provided from Natividad Medical Center Enterprise Fund 451-9600-6408.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Ongoing system maintenance is necessary to keep the hospital’s primary Electronic Health Record (EHR) system, MEDITECH, functional and accessible. The system holds all patient records which is a vital part of care and treatment, therefore this request ultimately leads to improved care and health of Natividad Medical Center’s patients. Regular maintenance also fosters a sound, secure and sustainable physical infrastructure.
__ Economic Development
__ Administration
X Health and Human Services
X Infrastructure
__ Public Safety
Prepared by: Raquel Mojica, IT Operations Manager, 783-2812
Approved by: Charles R. Harris, MD, Chief Executive Officer, 783-2504
Attachments:
Attachment A: MEDITECH Annual Maintenance Payment Schedule of FY25-26
Meditech Board Order FY 24-25
Original Agreement with Medical Information Technology, Inc.
Attachments on file with the Clerk of the Board