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Board committee approves seven-year Siemens contract for DPH software after negotiations yield savings
Summary
The Budget & Finance Committee accepted a Department of Public Health contract with Siemens Medical Solutions to replace and extend clinical and billing software, reporting a projected annual cost reduction of roughly $1.1 million and benefits for federal stimulus "meaningful use" reporting; the committee took the contract forward without objection.
The committee approved a Department of Public Health contract with Siemens Medical Solutions USA to replace existing clinical and financial systems with a new agreement that staff said would reduce annual costs and support federal "meaningful use" requirements.
DPH officials told the committee they have worked with Siemens for 25 years and that recent negotiations would terminate the existing arrangement early and replace it with a new contract beginning July 1. DPH staff and Siemens representatives said the new agreement would lower annual software and licensing costs from about $5,034,000 to about $3,967,000, a reduction of roughly $1.1 million per year over the new seven-year term. Officials also said Siemens offered license exchanges that would help DPH qualify for Medicare and Medicaid incentive payments tied to the federal stimulus program.
Supervisors asked for clarity about Siemens' corporate scope and whether the contract involved any transportation division work; DPH staff said Siemens' healthcare division handles the clinical and billing systems and the contract did not involve the transportation business lines. Supervisors took the motion to approve the contract and accepted it without objection.
What happens next: The contract will proceed to the full Board for final approval, with stipulations to monitor cost and performance as part of DPH's ongoing budget oversight.
