2004-140-Resolution No. 2004-014 Recorded 2/26/2004REV
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LEGAL COUNSEL
�COUNTY OFFICIAL
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NANCYDESCHUTES
COUNTY CLERKOS U 204-140
COMMISSIONERS' JOURNAL 0212612004 02:23:20 PM
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2004-140
For
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Transferring Appropriations
Within Various Funds of the 2003-2004 * RESOLUTION NO. 2004-014
Deschutes County Budget and Directing Entries
WHEREAS, it is necessary to transfer appropriations within the Deschutes County Budget;
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. That the following transfers of appropriations be made:
FROM: 001-4500-501.97-01 General Fund, Non -Departmental,
Contingency $100,000
TO: 259-2000-441.94-45 Health Department Fund,
Technology Improvements $100,000
FROM: 001-4500-501.97-01 General Fund, Non -Departmental,
Contingency $100,000
TO: 001-4500-491.96-11 General Fund, Non -Departmental,
Transfers Out -Health Department $100,000
Section 2. That the Finance Director make the appropriate entries in the Deschutes County
Budget document to show the above appropriations.
DATED this 25th day of February, 2004.
BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON
ATTEST: ' TOM
Recording Secretary MW
PAGE I OF I -RESOLUTION NO. 2004-014 (2/25/04)
M. DAL
S R. LUKE, Commissioner
DESCHUTES COUNTY
INCREASE OR TRANSFER OF APPROPRIATIONS FORM
B.O.C.C. Meeting Date:
Resolution No.
Line -item Description
Resources
Total Resources
Form No.
February 25, 2004
2004-014
Budget Prior
to this
Line -item Account Resolution Inc/(Dec) Revised
Requirements:
Deschutes County General Fund, Non -Departmental, Contingency 001-4500-501.97-01
Deschutes County General Fund, Non -Departmental, Transfers Out-Healt 001-4500-491.96-11
Deschutes County Health Department, Technology Improvements 259-2000-441.94-45
Total Requirements
3,908,894 - 3,908,894
2,034,834
1,843,812
30,248
(200,000)
100,000
100,000
1,834,834
1,943,812
130,248
3,908,894 - 3,908,894
,TEs r, 2bbo / q
Board of
County Commissioners
(541) 388-6565
Fax (541) 388-4752
E-mail: mikem@co.deschutes.or.us
To: Ai4-_�j
From: Michael A. Maier, County Administrator
Subject:
Date:
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Lemorandum
To: Board of County Commissioners
CC: Mike Maier
From: Daniel Peddycord, Tamara Weaver
Date: 1/28/2004
Re: OPERATIONS SOFTWARE FOR HEALTH DEPARTMENT
OCHIN SYSTEM
The Health Department suffers from extensive business inefficiencies and barriers to effective
operations from outdated operational software. Implementing new software is critical for improved
scheduling, client registration, billing, aged accounts receivable and management reports. In
addition, the ability to add electronic medical records in the future would be a desirable option. After
extensive research, the Health Department has concluded that implementing the EPIC software
system, by joining a consortium called OCHIN, is the preferred option. This system is needed to
enable the Health Department to become a cost effective, efficient and mission -driven organization.
The attached report gives detailed reasons why the OCHIN system is unique system and the only
reasonable choice for the County. The Health Department will have access to a multi-million dollar
software Health system (EPIC) for less than $80,000 preliminary costs and annual operating costs of
less than $30,000. Most Counties experience a significant increase in revenue and reduction i
expense that offsets the costs of the system. The EPIC medical practice and electronic medical
records system�is used by such organizations as Harvard, Kaiser, Group Health of Puget Sound,
Children's Hospitals and Cleveland Clinic (to mention a few). The Counties in the OCHIN
consortium (which allows access to EPIC and enhances it for County use) are Multnomah,
Clackamas, Tillamook, Benton and Lane. Washington and Deschutes are in the decision process.
The Health Department is requesting the one-time only costs of implementing this system to be
funded at the County level. The Health Department needs to make this change, but is currently
operating at a reduced work level with no new revenue expected for the coming fiscal year.
Often when operational inefficiencies are huge, it is difficult to "get to the other side". The Health
Department has the will and commitment to change, but needs one-time fiscal assistance to enact the
shed.
needed change, which will revolutionize the way the mission and business are accompli
In order to maximize the impact and changes needed for a full fiscal year, the Health Department
needs to sign a contract by early March 2004. This will allow the needed four-month implementation
process to occur.
■ Deschutes County Health Department
Operational Software Analysis and Proposed Action
January 28, 2004
BACKGROUND AND STATEMENT OF NEED
The Health Department software is out -dated and does not provide such options as aged accounts
receivables, monthly statements and comprehensive management reports. A comprehensive
package is needed that will provide scheduling, client registration, statistical tracking, aged
accounts receivable with client billing, electronic billing to third parties, and management reports
such as productivity reports. All of this must operate within the requirements for County Public
Health, which includes federal Title X requirements and numerous State regulations. There is an
opportunity to meet these needs at reasonable cost while also obtaining high-level support and
networking opportunities with Oregon Counties and FQHC's in Oregon and Washington.
Deschutes County can obtain access to software and support by buying into a successful and
established consortium called OCHIN. This expanded opportunity makes OCHIN the obvious
best and only choice for Deschutes County. A three month process of research has been
conducted that included staff at the Health Department and County IT department staff.
RESULTS OF RESEARCH AND SUGGESTED SOLUTION
Primary reasons to purchase OCHIN
■ SIN is a cooperative organizations a consortium), operating in Oregon and
Washington, providing access to state of the art operational software, normally
available only to large health systems (the EPIC system). Deschutes County IT
staff assessed the OCHIN purchase cost as nominal compared to the normal cost
of purchasing this type of software. Purchasing the rights to access this software
also includes technical support to stay abreast of changing regulations and
ongoing updates to medical coding and required updates from changing
regulations. OCHIN staff and board work closely with the State of Oregon to
resolve issues surrounding the operations of Public Health and FQHC clinics.
■ The medical practice software used and modified by OCHIN is called EPIC. It
can only be purchased by very large organizations. OCHIN had obtained a total of
$5,000,000 to allow the consortium to form. The EPIC software was voted the
best Health System software in the United States by a 20,000 member user group
called Health Information Medical Services Systems (HIIVICSS).
■ OCHIN staff includes people with a great depth of experience in information
systems, as well as operations of Public Health and FQHC clinics. Other Counties
in the OCHIN system use such words as "exceptional and timely support" to
describe their experiences with the OCHIN organization.
■ Each consortium member is allowed a s on the OCHIN board and is�partf the
de_, cisions made to upgrade an c ange the system. Thus, Deschutes Cotaff
D IZC will be given equal voice with larger members, such as Multnomah County.
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Page 1 of 3 1/28/2004, tdw, local/general statement of need.doc
Our IT department has met with the IT staff from OCHIN. Our current hardware
and IT software is compatible with OCHIN and will require very little upgrading
(some older computer monitors and hardware need to be upgraded).
A number of Oregon Counties are members of OCHIN. These Counties are
Multnomah, Clackamas, Tillamook, Benton and Lane. Washington County and
Deschutes County are in the decision process to purchase membership.
In addition, by being a member, Deschutes County Health will have easy access
to staff in other counties working to resolve the same issues. There are user
groups, by topic, that telephone conference to share experiences and ideas for
improvements of operations. OCHIN does a telephone conference every two
weeks to discuss operations and determine if there are outstanding issues or
suggestions for improvement. OCHIN staff work closely with the Counties and
are able to work with top State officials. By joining forces with other Counties,
Deschutes County will revolutionize the business operations portion of the Health
Department, gaining much greater influence at the State level while improving
administration through training opportunities gained by staff working closely with
peers using the same software systems in other Counties.
The Health Department is required to bill the Family Planning program grant
(based on Medicaid funding) through a special system (Ahlers). Currently this
causes duplication of staff time to enter both into the Abler's system and into the
Health Department system. OCHIN has incorporated the Ahler's system into its
system and duplication of effort is eliminated.
Currently the State has implemented a system for WIC, called TWIST, which is
outdated and causing the Oregon Counties operational difficulties. OCHIN staff is
currently working to integrate Twist into OCHIN. They are in contact with top
State officials over the TWIST project. Alone, Deschutes County would not have
the ability to enact this change. As a group, with OCHIN, it appears it will happen
soon. OCHIN has funds to provide this integration, free of charge, and the
inclusion of WIC will not increase the annual fee.
OCHIN based software allows all medical and grant based billing done by the
Health Department to be done electronically. OCHIN downloads all current CPT,
HCPC, and ICD-9 information into the system. OCHIN has a central clearing
house for the electronic billing and payment turn -around is rapid. OCHIN
processes monthly statements. Aged accounts receivable and other reports are
comprehensive. Any additional reports needed can be generated using a large
library of developed reports, or by designing specialty reports using software
called Crystal reports (the Health Department will use Ray Wingert, IT staff, to
generate new reports).
The Health Department support staff is currently unable to handle the workloads
efficiently. This new software will eliminate double work and hand work, done
both in the Ahler's work mentioned above, in billing (staff have to re-enter
receipts taken at the front desk and hand enter all codes that could be entered at
time of check-out) and will eliminate the hand -statements that are now done. Staff
can be shifted to unmet work needs and new staff will not need to be hired to
meet the current unmet needs. The Health Department's future growth will be
able to be met without increasing administrative staff working in these areas.
Page 2 of 3 1/28/2004, tdw, local/general statement of need.doc
■ There will be one statistical data base (at this time we access at least five different
sources of data: Acuterm system, Ahler's system, Twist, TCM, and Iris). This will
significantly ease reporting requirements and provide meaningful management
reports.
■ The OCHIN system is capable of adding electronic medical records (it exists as
part of the underlying EPIC system). Planned implementation is in about a year,
which would allow the Health Department to fully implement the scheduling,
client registration, billing and reporting modules before implementing electronic
medical records. This may be grant funded.
CONCLUSION
Many software systems allow medical billing and scheduling. No other software system
available offers the advantage of addressing the unique needs in Oregon (working with the State
to incorporate special programming such as Ahlers, Twist, TCM and IRIS) while meeting all
Title X and Oregon State regulations. In addition, there is no other opportunity to combine the
expertise and strength of the majority of Health Department clients serviced in Oregon, with a
strong expert staff at a central location. Making a purchase decision on OCHIN and signing a
contract by March 2004 will allow implementation by the beginning of this next fiscal year, July
1, 2004. This will give the advantage of a full year of data needed for most reports and
operational decisions.
County Counsel (Mark Pilliod), at this time (January 26, 2004) advised updating the
Commissioners on the procurement process as Mark believes it is entirely feasible to meet the
critical time -line to ensure this software can be live by July 1, 2004. He will have his final
recommendation as to process finished very soon.
Benton County staff took three months to implement software. They strongly recommended
allowing more time. Four months should allow adequate time, though it will be a challenging
process which will require the hiring of a temporary staff person over that four month period to
assist with accounting tasks to allow the Business/Operations manager and billing staff the time
for implementation tasks and training.
PROPOSED TIME LINE
March 1 to 10th, 2004 — Contract signed with OCHIN
March 1 to April 30 — "Super -user" staff (3 to 4 staff) attends week training in Wisconsin on
EPIC system, then Portland training on OCHIN and form internal
planning group for set-up decisions and processes. OCHIN staff will do a
walk through on entire system and guide the process.
May All internal decisions on set-up are finalized
June Implementation of system is commenced (schedule modules, coding,
transfers of data) training of line -staff. OCHIN staff will be on site again
at this point to assist transition
July 1, 2004 SYSTEM IS LIVE
Page 3 of 3 1/28/2004, tdw, local/general statement of need.doc
a
DESCHUTES COUNTY HEALTH
OCHIN COST ESTIMATE
January 26,2004
Total Cost
Estimated Implementation cost (estimating on the high side)
One-time payment to OCHIN
Based on annual est visits in clinics $ 4.75 15,000 est. client visits $ 71,250
Other costs (high estimate)
Purchase of new computer monitors $ 475.00 11 units 5,225
Telecommunications facilities charges 3,500
New equipment
Printer
Replacement terminals for old equipment $ 350
Cost of temporary accountant to assist Business/ Operations Mgr
Total Estimate
Cost of temporary staff to free
Business/ Operation Mgr to be project leader
Hours per week
Weeks of implementation
Cost per hour
Annual costs
Client visit estimates
Additional cost for hand bills
Eligible 25% discount on connectivig
Electronic billing 13 cents each
2000 statements at 30 cents
10 units
1,000
3,500
$ 1.0,240
$ 94,715
32
16
$ 20.00
$ 10,240 $ 10,240
Low
—Expected
High
$ 18,000 $
22,750
$ 26,250
12,000
13,000
14,000
$ 1.75 $
1.75
$ 1.75
$ 1,440 $
1,560
$ 1,680
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Exhibit A
Software Modules and Hardware Capacity
Unless otherwise defined, capitalized terms in this exhibit have the meanings given on the cover page of this agreement
(the "Cover Page') or Exhibits B through D.
Member will have access to the following software modules described on Exhibit 1(a) to the Epic Standard License and
Support Agreement ("Epic License Agreement'):
Resolute Professional Billing System
Electronic Remittance
Cadence Scheduling System
Health Information Management -Chart Tracking
- — — — -identity Embedded- Master-Personandex- --. -- ---- -- -- -- - — - —
Clarity and Analyst Reporting Package
SmartForms and Advantage Development Kit
Bridges EDI Developer's License
InterSystems Cache "
KB Systems SQL
Seagate Crystal Info for Windows (Version 7.x)
Diagnostic Data
Distinct Corporation - Object code version of TELNET. DLL
CPT Code License
*Member will pay an additional $1,100 license fee for each InterSystems Cache license in excess of those included in the
Initial Payment.
Member will have access to the following software modules described on Exhibit 1(c) to the Epic License Agreement only if
OCHIN exercises its option to purchase a license for the module and. Member agrees to pay an additional charge for the
module as allocated by the OCHIN Board:
Identity Enterprise Master Person Index
MyChart for Patients
MyEpic Executive Information System
Customer Relationship Management / Call Management
Tapestry Managed Care Administration - Enrollment and Benefits Management for Payors
Tapestry Managed Care Administration - Utilization Review and Case Management for Payors
Tapestry Managed Care Administration - AP Claims / Capitalization for Health Plan and Insurers
Tapestry Managed Care Administration - Premium Billing for Payors
Tapestry Managed Care Administration - Claims Repricing for Payors
Nurse Triage
Chronicles Plus
EpicCare Ambulatory EMR
EpicWeb Light
EpicWeb Medium
Member will not have access to the following software modules described on Exhibits 1(a) or 1(c) to the Epic License
Agreement:
Advanced Rules -Based Scheduling
Dental Billing
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