Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute an Agreement with The Data Systems Group for Software Licenses for Electronic Billing and Medicare Eligibility Services at NMC for a term retroactive to July 1, 2015 through June 30, 2018 for a total Agreement amount not to exceed $550,000.
b. Authorize the Deputy Purchasing Agent for NMC to sign up to three (3) future Amendments to this Agreement where the total amendments do not extend the term by more than two (2) additional one (1) year periods, do not exceed 10% ($55,000) of the original Agreement amount and do not significantly change the scope of services.
Report
RECOMMENDATION:
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute an Agreement with The Data Systems Group for Software Licenses for Electronic Billing and Medicare Eligibility Services at NMC for a term retroactive to July 1, 2015 through June 30, 2018 for a total Agreement amount not to exceed $550,000.
b. Authorize the Deputy Purchasing Agent for NMC to sign up to three (3) future Amendments to this Agreement where the total amendments do not extend the term by more than two (2) additional one (1) year periods, do not exceed 10% ($55,000) of the original Agreement amount and do not significantly change the scope of services.
SUMMARY/DISCUSSION:
The Data Systems Group provides NMC with web-based licensed software which is used to submit claims to insurance companies and identify self-pay patients who might qualify for Medi-Cal reimbursement to the hospital. As part of the billing process NMC must submit claims within a certain number of days after the patient visit in order to receive these payments. The Data Systems Group software provides a daily crosscheck of self-pay patients to the Medi-Cal system to check eligibility and improves timeliness of claims avoiding payment denials from Medi-Cal.
The previous Agreement with The Data Systems Group for these services was initiated in 2009 and expired on June 30, 2015. NMC wishes to enter into a new Agreement, retroactive to July 1, 2015, and is adding additional services. The Data Systems group will continue to provide NMC with the services described above but will also provide NMC with direct access to the online Medicare system through a secured portal which allows NMC to send Medicare claims, check status of Medicare claims, and view Medicare reimbursements issued. The primary reason that this Agreement was not completed on time was due to numerous months of negotiations between the parties. Between July and December the total amount owed is approximately $79,000.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Agreement as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Agreement as to fiscal provisions. The Agreement has also been reviewed and approved by NMC’s Finance Committee on July 23, 2015 and by its Board of Trustees on August 7, 2015.
FINANCING:
The cost for this Agreement is $550,000, $150,000 of which is included in the Fiscal Year 2015-16 Adopted Budget. Amounts for remaining years of the Agreement will be included in those budgets as appropriate. There is no impact to the General Fund.
Prepared by: Vince Carr, Patient Financial Services Director, 783-2345
Approved by: Gary R. Gray, Chief Executive Officer, 783-2504
Attachments:
The Data Systems Group Agreement
Attachments on file with the Clerk of the Board