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State Health Entity Seeks IT Assistance With Modernization

In a request for offer, the California Department of Health Care Services calls for help with change management as part of its Medi-Cal Modernization.

Hand working with Digital transformation change management and internet of things (IoT) Ui.
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The state department charged with ensuring residents have access to affordable quality health care will modernize key systems and is looking for assistance during the refresh.

In a request for offer (RFO) released April 29, the California Department of Health Care Services (DHCS) wants to hear from IT companies that are “identified on a currently active Information Technology (IT) Consulting Services, California Multiple Award Schedule (CMAS)” via the Department of General Services (DGS). DHCS’ need in the RFO is for “Medi-Cal Enterprise Systems (MES) Modernization Organizational Change Management (OCM) Services.” Among the takeaways:

  • The MES Modernization is “undertaking a digital business transformation and using a continuous modernization approach to updating its existing systems,” according to the RFO. The endeavor has a “significant impact” to staff and how they do their work. OCM, the department said, will “ensure the transition to the new modernization approach delivers the desired results and outcomes, and that impacted staff are able to carry out their work responsibilities using the new systems.” The contractor chosen will need to deliver OCM services that analyze the organization’s design and how the transformation will change that. The modernization’s overall goal is to create a “permanent, experienced and functional information technology organization” that can modernize Medi-Cal legacy business processes in partnership with the program, as well as “infrastructure and systems with current technologies that support current and future business needs.” DHCS expects the transformed IT organization will maintain the new systems’ viability and ensure the modernization continues “over time.” Generally, the modernization aims to set up an organization to support “all Medi-Cal systems within DHCS.”
  • DHCS’ current Medicaid Management Information System rely on “40-year-old technology” to deliver business process support that’s partially automated support, to the processes that run state Medicaid. This includes the vital IT and business operations support for state and federal oversight entities and stakeholders – making sure that roughly 13.5 million Medi-Cal beneficiaries get their health-care services. The department wants to make sure its changes are “fully embedded and integrated within all areas associated with the transformation.” The OCM sought will not focus on one business area but across the MES. Thus, the contract could potentially impact many areas of DHCS. The prioritizing and timing of systems modernization and work start dates haven’t been set. The department has an internal OCM team, and the contractor selected should coordinate with that team. The contractor chosen will be expected to provide and create a “tailored change strategy, plan methodology and tool set to enable those changes,” and address “how the organization should be designed to support the changes; impacts to people; risks; resistance that will be seen; and training needed. Services needed include a change assessment; change readiness; a tool set; OCM communications; and OCM training. Deliverables follow similar categories but also include a tailored change strategy.
  • Requirements include, generally, three respondent references that can “confirm their satisfaction” with the contractor’s service, timeliness and effectiveness. Companies must offer a description of their area of expertise and prior work in OCM – focusing on work during the last five years and particularly that for a state government entity. Respondent must also have at least two years’ experience with one or more federal, state or local government IT implementations involving “all layers of the organization from staff to mid-level managers and executives.” Requirements for key staff include one staffer with at least three years’ experience providing business process re-engineering services in at least one federal, state or local IT implementation; and one staffer with at least three years’ experience leading and developing “as-is/to-be” analyses, documenting business process re-engineering and developing OCM analyses.
  • The contract amount is not specified. The contract term is 36 months, with the option on the part of the state of two one-year extensions. Offers are due by 2 p.m. May 26. A response assessment and key staff interviews for the top two respondents will follow, though dates have not been set. The state will notify respondents of the interview date via email. Dates for the notice of award and the proposed contract start date also have not been set.
Theo Douglas is Assistant Managing Editor of Industry Insider — California.