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, 2026 through June 30, 2027 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, 2026 through June 30, 2027 and subject to the terms and conditions of the parties’ Healthcare Information System Software Agreement dated July 19, 2004.
SUMMARY:
MEDITECH is Natividad Medical Center’s primary clinical and financial information system for patient registration, clinical documentation, physician ordering, patient electronic health records, and billing functions. The MEDITECH System includes multiple modules and interfaces that carry ongoing monthly maintenance fees.
This reflects a 1-year amendment to the existing MEDITECH Healthcare Information System Software Agreement.
DISCUSSION:
The MEDITECH system is composed of numerous core modules, optional features, enhancements, and system interfaces, all of which require ongoing monthly maintenance fees to ensure continued vendor support, updates, and regulatory compliance. As Natividad Medical Center has expanded and or enhanced its use of MEDITECH, corresponding maintenance costs have increased over time to account for this.
Natividad Medical Center’s agreement with MEDITECH is a long-standing, perpetual agreement that governs the use and support of the system and includes a standard 60-day termination provision. The proposed amendment extends the agreement term by an additional 1-year to maintain uninterrupted support and maintenance services.
Continued access to MEDITECH support and maintenance is necessary to sustain daily hospital operations and ensure system stability.
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 June 5, 2026.
FINANCING:
The cost for this request is $475,000, all of which is included in the FY26-2 Recommended Budget. There is no impact on the General Fund with this action.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS SECTION:
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.
__ Well-Being and Quality of Life
X Sustainable Infrastructure for Present and Future
_ _Safe and Resilient Communities
___Diverse and Thriving Economy
X Administrative
Prepared by: Raquel Mojica, IT Operations Manager, 783-2812
Approved by: Nancy Buscher, Interim Chief Executive Officer, 783-2560
Attachments:
Board Report
Attachment A: MEDITECH Annual Maintenance Payment Schedule of FY26-27
Original Agreement with Medical Information Technology, Inc.
Attachments on file with the Clerk of the Board