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Technology Services Board approves Orchard-hosted approach for HC Max after debate over cost and timing
Summary
The board voted to approve an Epic Orchard-hosted alternative for the statewide HC Max enterprise EHR program despite questions from legislators about shifted costs into FY28, higher M&O estimates, and compliance and integration concerns; two legislators recorded no votes.
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The Technology Services Board approved an alternative approach for the states Health Care Management and Coordination System (HC Max) that shifts the implementation to an Epic Orchard-hosted model and updates the programs scope, schedule and budget as required by the fiscal-year-26 proviso.
Kara Zamora, senior oversight consultant with Watech, summarized the proviso and the submission requirements under the FY26 supplemental budget. Program leads described the Orchard approach as an Epic-hosted, more standardized package intended to shorten implementation time and reduce configuration hours. The projects wave 1 go-live date moved from April 2027 to March 2028, and presenters said the FY26 supplemental budget funds the program through FY27. Carrie Haycock, presenting for the program, told the board the proposal still includes the Epic enterprise applications but in an "eco hosted" Orchard configuration and said the team expects net savings: "My slide. But it's roughly $2,020,000,000 in in savings for, moving forward." (verbatim as in the packet.)
Several legislators pressed the program on budgeting and compliance. Senator Stanford and others asked why some costs appear pushed into FY28 and why M&O (maintenance and operations) projections seem higher under Orchard. Program staff said some costs followed timeline adjustments and purchases (licenses) made in FY26, and they offered to provide more granular, appendix-level comparisons offline. Committee members also raised Section 701 compliance and the need to ensure contractual language and downstream vendors meet statutory requirements; program staff said Epic would work in good faith to support compliance and that the program will include the required contractual terms.
Board chair Bill Kehoe called for a motion to approve the Orchard approach; the motion was moved and seconded and passed despite two recorded no votes. Kehoe said staff and program leads would work with legislators after the meeting to address lingering questions.
What passed: board approval of the updated enterprise plan and roadmap for HC Max (scope, schedule and budget) as required by the budget proviso. What remains: program teams committed to follow-up briefings and more granular financial comparisons and compliance documentation for legislative members.
