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Budget committee backs DPH contract with Epic after analysts detail multi‑year cost
Summary
The committee recommended approval of a proposed DPH contract with Epic for an integrated EHR, citing risks to billing continuity; analysts noted a base contract of $149 million over 10 years and DPH projected higher lifecycle costs tied to implementation and contingency.
The Budget and Finance Committee voted to forward a resolution recommending that the Board of Supervisors approve a contract between the Department of Public Health and Epic City Government LLC to implement an integrated electronic health record (EHR) system.
Bill Kim, chief information officer for the Department of Public Health, said the new system will consolidate disparate clinical systems, digitally capture clinical and diagnostic information and support care coordination across DPH’s sites. Kim said the EHR is needed to avoid billing disruption when the department’s current systems reach end of life and to better capture services for reimbursement.
Greg Wagner, DPH chief financial officer, said the system supports documentation for Medicare, Medi‑Cal and commercial billing tiers and estimated the product and hosting ask at approximately $167 million. The Budget Legislative Analyst’s office reported a base contract of roughly $149 million over 10 years, with a 12% contingency (~$18 million) that DPH said would be used at its discretion for unexpected fees, volume increases or service changes. BLA recommended approval.
Supervisors pressed DPH on cost‑savings projections and implementation staffing. DPH said the grant/contract will fund five positions and that much of the implementation work will be done through existing staff and contracted services; DPH projected a five‑year technology plan and anticipates phased deployment beginning mid‑2019.
Severn Campbell of the Budget Legislative Analyst’s office confirmed the project has been included in prior ICT plans and that council appropriations were made in the 2017–18 and 2018–19 budgets. The committee moved the item to the full Board with a positive recommendation.
The committee’s report notes the project’s high cost and the contingency amount; it directs continued oversight of implementation and change control as DPH proceeds to contract execution.
