University of Illinois at Chicago
Announcement of a Sole Source Purchase
Vendor: Optum 360, LLC.
Change Order Amount: $140,000
Increased estimated amount from $570,000 to $710,000 as detailed in the attached change order justification form.
The University award process may be delayed up to thirty days as this award goes through a state approval process.
Renewal entered into with:Vendor: Optum 360, LLC.
Amount: An estimated $570,000
Renewal: 1st of 2, 11/18/2022 through 11/17/2023
Pricing Changes:
None
Service/Product Changes:
None
Sole Source Status:
Yes, this remains a sole source.
Potential Future Renewals:
$570,000
The Chief Procurement Officer for this procurement is now John Donato.
The State Purchasing Officer for this procurement is now Catherine Bradbury.
The University has taken into account 30 ILCS 575/8i of the BEP Act in conducting this renewal.
The University award process may be delayed up to thirty days as this award goes through a state approval process.
Vendor: Optum 360, LLC.
Change Order Amount: $336,841
The annual fees for All Patient Refined Diagnosis Related Grouper (APR-DRG) and Illinois Medicaid APR-DRG grouper had to be added for year 2, and 3 as they are needed for Clinical Documentation Improvement and Computerized Assisted Coding software (CDI and CAC) modules functionality.
The University award process may be delayed up to thirty days as this award goes through a state approval process.
Optum 360, LLC.Eden Prairie, MN
- Amount: An estimated $1,921,000
- Terms: An estimated start date of 11/18/2019 through 11/17/2022, 36 months
- Renewals: 2 one-year
-
Potential Future Renewals:
$1,140,000
The University award process may be delayed up to thirty days as this award goes through a state approval process.
The hearing has been cancelled since no vendors registered to attend or submitted comments regarding this notice.
The Chief Procurement Officer for this procurement is now Ben Bagby.
The State Purchasing Officer for this procurement is now Catherine Bradbury.
First published Monday, September 16, 2019
The University awarded a contract for maintenance and support for Optum Enterprise to Optum 360, LLC., Eden Prairie, MN, for an estimated $1,921,000.
There are currently three major versions of the DRG (Diagnosis Related Group) in use: basic DRGs, All Patient DRGs, and All Patient Refined DRGs. DRGs are used by Medicare and measure the typical resource use of an inpatient stay. AP-DRGs are similar to DRGs, but also include a more detailed DRG breakdown for non-Medicare patients, particularly newborns and children. The APR-DRG structure is similar to the AP-DRG, but also measures severity of illness and risk of mortality in addition to resource utilization. Prospective Payment Systems (PPS) replaced the retrospective cost-based system of payment for Medicare services with a prospective payment system. Under PPS, a predetermined specific rate for each discharge dictates payment according to the diagnosis related group (DRG) in which the discharge is classified.
The products are necessary to allow for an integration of coding and Clinical Documentation Improvement processes with the Epic electronic health record system that will be implemented in May of 2020. The system also provides APR-DRG and Illinois APR-DRG groupers that are needed for processing coding and billing of accounts. These products are critical to the continuity of coding, billing and reimbursement to the hospital.
The university, on information and belief, has concluded that only one vendor can meet its need or can meet the need economically. That vendor is Optum 360, LLC. The university has provided detailed justification to support its conclusion as shown on the attached Sole Source Justification Form.
Although the university has presented this as a sole source procurement, we are seeking competitive information from firms with the capability of meeting the university?s need (even if performed in a manner different from what has been presented) to contact us and provide sufficient information to show the need can be met. If we receive that information, the Chief Procurement Officer will offer a public hearing to consider the matter. Hearing information is described below.
The University has determined that this purchase is only economically available from this source because the procurement is software license, upgrade or maintenance.
For instructions on how to obtain a comprehensive purchase description, disclosure or contract forms, contact:
Chief Procurement Officer - Ben Bagby
State Purchasing Officer - Catherine Bradbury
The State of Illinois has a policy to encourage prospective vendors to hire
qualified veterans, minorities, females, persons with disabilities and ex-offenders.
