Title
Authorize the Interim Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute renewal and amendment No. 2 to the agreement (A-15447) with Solventum Health Information Systems, Inc. for medical records coding software and maintenance services, extending the agreement an additional five year period (August 9, 2026 through August 8, 2031) for a revised full agreement term of August 9, 2021 through August 8, 2031, and adding $1,444,110 for a revised total agreement amount not to exceed $2,588,100.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Interim Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute renewal amendment No. 2 to the agreement (A-15447) with Solventum Health Information Systems, Inc. for medical records coding software and maintenance services, extending the agreement an additional five year period (August 9, 2026 through August 8, 2031) for a revised full agreement term of August 9, 2021 through August 8, 2031, and adding $1,444,110 for a revised total agreement amount not to exceed $2,588,100.
SUMMARY:
The Solventum Encoder has built in prompts and flags which provides guidance to the Natividad Medical Center Coders as they navigate through the coding selection process. The Solventum Encoder allows the coders to increase their efficiency and accuracy. The Solventum Encoder uploads updates from the various coding regulatory entities as mandated, removes the expired conventions and ensures compliance. Utilizing the Encoder has eliminated the usage of manual coding books and inefficiencies.
DISCUSSION:
The Solventum Encoder Software benefits Natividad Medical Center as it ensures that the accurate International Classification of Diseases Tenth Revision (ICD10), Current Procedural Terminology (CPT) and Diagnosis Related Group (DRG) are selected by the coder utilizing the medical documentation provided by the clinician in an outpatient and or inpatient encounter.
The Encoder Software groups the codes by classifications, diseases and injuries the appended codes to the patient encounter are utilized for reimbursement purposes, medical equipment, medical supplies and statistical data reporting utilized by local, state and federal entities.
Lastly, the patient benefits by Natividad Medical Center utilizing a creditable Encoder Software as it ensures that the most current conventions are uploaded which is one the components for accurate fees charged for services and adherence to on-going regulatory compliance.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel has reviewed and approved this renewal and amendment No. 2 as to form, and the Auditor-Controller has reviewed and approved as to payment provisions. The renewal and amendment No. 2 has also been reviewed and approved by NMC’s Finance Committee and by its Board of Trustees on August 7, 2026.
FINANCING:
The cost for this renewal and amendment No. 2 is $1,444,100 of which $261,345.69 is included in the FY 2026-27 Adopted Budget. Amounts for remaining years of the agreement will be included in those budgets as appropriate. There is no impact on the General Fund with this action.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS SECTION:
The Solventum Encoder Software Tool converts clinical documentation into accurate standardized medical codes for diagnosis, procedures and diagnostic groups. The accurate assignment of codes is essential and are utilized for reimbursement, data analytics and regulatory reporting.
__ Well-Being and Quality of Life
__ Sustainable Infrastructure for Present and Future
X Safe and Resilient Communities
__Diverse and Thriving Economy
__ Administrative
Prepared by: Kim Williams-Neal, HIM Director, 831-783-2415
Approved by: Nancy Buscher, Interim Chief Executive Officer, 783-2553
Attachment(s):
Board Report
Solventum Health Information Systems, Inc. (formerly 3M) Renewal and Amendment No. 2
Solventum Health Information Systems, Inc. (formerly 3M) Amendment No. 1
3M Health Information Systems, Inc. Original Agreement
Attachments on file with the Clerk of the Board