Idaho Health Data Exchange faces scrutiny after bankruptcy filing
June 04, 2024 | Joint Finance-Appropriations Committee, JOINT, Committees, Legislative, Idaho
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
In a recent government meeting, Sasha O'Connell, deputy administrator with the Idaho Division of Medicaid, provided a detailed update on the Idaho Health Data Exchange (IHDE) following its bankruptcy filing in August 2022. The exchange, designed to facilitate electronic health record sharing among providers, has faced significant operational and oversight challenges, leading to a March 2023 evaluation request from state legislators.
O'Connell reported that the Office of Performance Evaluations (OPE) found the IHDE was established without adequate transparency and oversight, resulting in a disconnect from the Department of Health and Welfare. Since 2008, the department has allocated approximately $24.4 million to the exchange, but the IHDE failed to connect as many providers as promised under its contracts. Additionally, the department's IT experts were unable to independently verify the security of the data, relying instead on a third-party attestation that was later revealed to have conflicts of interest.
The evaluation also highlighted financial discrepancies, including a $20 million contract where the IHDE claimed it was owed $1.5 million despite only receiving $9 million. Following a civil lawsuit from a subcontractor, the IHDE filed for bankruptcy, agreeing to repay 25% of its debts over five years.
In response to the OPE findings, the Department of Health and Welfare issued a conditional termination letter to the IHDE in April 2024, requesting documentation to reconsider the termination. However, the IHDE's response was deemed insufficient, leading to the decision not to renew its data access agreement, which expires on June 30, 2024. Plans are also in place to terminate access to the immunization database, which currently lacks a formal contract.
O'Connell emphasized the need for the state to explore new health information exchange options, potentially through a procurement process. The legislature has already taken steps to prevent future oversight issues by passing House Bill 708, which clarifies that state agencies cannot create corporations without legislative approval.
Concerns were raised by committee members regarding citizens' difficulties in opting out of the IHDE, with reports of unresponsive requests for data removal. O'Connell acknowledged the issue and indicated that the legislature should address it.
Overall, the meeting underscored the ongoing challenges and potential restructuring of the Idaho Health Data Exchange, as state officials seek to improve health data management and oversight in the future.
O'Connell reported that the Office of Performance Evaluations (OPE) found the IHDE was established without adequate transparency and oversight, resulting in a disconnect from the Department of Health and Welfare. Since 2008, the department has allocated approximately $24.4 million to the exchange, but the IHDE failed to connect as many providers as promised under its contracts. Additionally, the department's IT experts were unable to independently verify the security of the data, relying instead on a third-party attestation that was later revealed to have conflicts of interest.
The evaluation also highlighted financial discrepancies, including a $20 million contract where the IHDE claimed it was owed $1.5 million despite only receiving $9 million. Following a civil lawsuit from a subcontractor, the IHDE filed for bankruptcy, agreeing to repay 25% of its debts over five years.
In response to the OPE findings, the Department of Health and Welfare issued a conditional termination letter to the IHDE in April 2024, requesting documentation to reconsider the termination. However, the IHDE's response was deemed insufficient, leading to the decision not to renew its data access agreement, which expires on June 30, 2024. Plans are also in place to terminate access to the immunization database, which currently lacks a formal contract.
O'Connell emphasized the need for the state to explore new health information exchange options, potentially through a procurement process. The legislature has already taken steps to prevent future oversight issues by passing House Bill 708, which clarifies that state agencies cannot create corporations without legislative approval.
Concerns were raised by committee members regarding citizens' difficulties in opting out of the IHDE, with reports of unresponsive requests for data removal. O'Connell acknowledged the issue and indicated that the legislature should address it.
Overall, the meeting underscored the ongoing challenges and potential restructuring of the Idaho Health Data Exchange, as state officials seek to improve health data management and oversight in the future.
View full meeting
This article is based on a recent meeting—watch the full video and explore the complete transcript for deeper insights into the discussion.
View full meeting