Best Practices In Vendor Selection & Contracting · Best Practices In Vendor Selection &...

www.openminds.com163 York Street, Gettysburg, PA 17325Phone: 717-334-1329 - Email: [email protected]

Best Practices In Vendor Selection &

ContractingPresented By: Joseph Naughton-Travers, Ed.M., Senior

Associate, OPEN MINDS

Sponsored by ADVIX

Presented On: February 26, 2015 at 2:00 PM EST

Choosing The Right EHR For You:

I. Steps For Vetting Vendors & Their Products & Services

II. Contract Negotiation: Ensuring Best Value & Performance

III. Quick Peek: Key Elements Of An EHR Implementation

Executive Web Briefing Outline

© 2014 OPEN MINDS. All rights reserved. 2

Steps For Vetting Vendors & Their Products & Services


© 2014 OPEN MINDS. All rights reserved.

Key Vendor Evaluation Areas

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• Functionality• Customer support and

service• Implementation

expertise• Company stability• Cost


Key Phases In EHR Vendor Selection & Contracting

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Phase 1• Organizational Assessment & EHR Vendor Research

Phase 2• Preliminary EHR Vendor Selection

Phase 3• Vetting Finalists & Making Final Selection

Phase 4• Contract Negotiation & Implementation Preparation


Steps For Vetting Vendors & Their Products & Services:


Phase 1 — Organizational Assessment & EHR Vendor Research


Organizational EHR Readiness Assessment

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• Review organizational strategic plan and role of technology and EHR in achieving key strategic and operational objectives

• Assess staff readiness for an EHR

• Assess IT infrastructure readiness

One of the keys to successfully selecting a software application is knowing what functionality your business needs or from what software it would benefit

Get an overview of what products and services are available

• Trade shows where vendors exhibit• Requesting marketing and promotional materials from vendors• Issuing a Request For Information (RFI) to gather basic information about

functionality and services


Preliminary EHR Vendor Research

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The goal in this step is not to evaluate the vendors, but rather to gain a better understanding of how technology could benefit your organization so that you are able to detail the functional specifications based on both current operations and needs, as well as what “could be.”


Advantage Of Researching

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Determine If You Have Any Vendor ‘Knock-Out’ Factors

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For this preliminary screening of vendors, we recommend using “knock-out” factors that are driven by your organization’s business needs and management and purchasing choices.


Commonly Used Knock-Out Factors

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Whether the vendor has or requires a hosting or application service provider (ASP) option or SAAS (software as a service) option

Vendor experience with local market or

specific service types

The vendor’s software technology

platform and database

Lack of mission critical

functionality

Whether the vendor offers wireless or

disconnected database

technologies


Phase 2 — Preliminary EHR Vendor Selection


Develop & Release A Competitive Request For Proposal (RFP)

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Develop a detailed listing of your organization’s

functional needs

• Incorporate any knock-out factors into it

Exact functional specifications vary from

organization to organization

•Common areas of functionality that you should review to determine which specifications are most important for meeting your needs


Sample RFP Sections

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Vendor overview

Technical information and infrastructure

requirements

Training, implementation support, data

conversion, software upgrades

Customer support approach

Data conversion, customization and software upgrade

processes

EHR capability and implementation

experience

Software functionality

Report writing

Scanning, document management, and

record release capabilities

Mobile solutions

Data import/export and software interface

capabilities

Experience in local market

Compliance plans

Integration with primary care

Customer reference contact information

Cost


Vendor Overview

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Section to provide a basic understanding of the vendor’s business

Company Customers Services

Key qualifications

offered to meet your technology

needs

Section should contain detailed questions from the technology staff about needs for:

Hardware

Software

Network

Telecommunications set-up needed or

recommended Software platform/database

(any near-term plans for upgrading?)

Recommended staffing to support

the application once implemented


Technical Information & Infrastructure Requirements

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In this section, describe your organization’s typical approaches to:•Training•Implementation•Support•Data conversion•Software upgrades

Include the following detailed information in this section: •Number of full-time equivalent (FTE) staff members you have in each of these operational areas •Information on typical implementation services•Include key tasks, timelines, and staff members involved both from your organization and the

purchaser•Help Desk Operations•Include information on 24/7 availability, how calls are prioritized, response times, whether the caller

has routine access to live staff, and all other information of interest to a customer•Experience in converting data from other EHR systems•Information about User Groups•Information about how customers are involved in the software enhancement decision process•Frequency of upgrades


Training, Implementation, Support, Data Conversion, & Software Upgrades

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In this section, ask the vendor to detail:

How is the creation of electronic health

record forms supported?

What if other electronic data

forms are needed?

How can end-users (rather than the

vendor) customize the electronic health

record


Configurable Form & Field Capability

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Report Writing Functionality

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In this section, ask the vendor to describe:

Report writing capability of its technology solutions

A listing and description of standard reports

Export capabilities

Compatibility with other applications

Ease of use, etc.

A report-writer that is comprehensive and easy to use, allowing reporting on all data elements in

the system

Ability to write custom reports and write and use stored procedures

Data-warehouse and data mining capabilities

A data dictionary and supporting

documentation

An extensive library of reports, with commonly used queries and sorts,

which can be easily customized as needed by

the customer

Ability to save and name report templates

Ability to run reports in batches

Ability to run reports or report batches at scheduled times

Ability to create management information

dashboardsAbility to create graphs or

charts


Desired Reporting Functionality

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In this section, ask the vendor to detail:

Additional business intelligence tools for reporting executive and management metrics

Partner(s) that provide these tools

Functionality in detail


Additional Business Intelligence Tools

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Scanning, Document Management & Record Release Capabilities

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• Supports for scanning and managing documents that are created by other parties so that they can be included in a case or medical record

• Supports for releasing parts or all of the case or electronic records to other parties• Both in paper and secure electronic formats


Expertise in interfacing with common general ledger and human resource applications

Helping provider organizations share data with other providers and stakeholders


Software Interface & Data Exchange Capabilities

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In this section, ask the vendor about:•Experience in the local market•Support for your state’s versions of electronic billing forms •Interfacing with state systems


Experience In Local Market

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Plans for continued software and business development

Technical directions it is taking its products and services• Include both short- and long-term

roadmaps about product enhancements or other initiatives


Overall Software Development Plans & Technical Direction

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Mobile Solutions

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Ability to securely connect its software to smartphones, tablets, or other mobile devices,

What functionality is available?


Disconnected Database Functionality

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Does software application have the functionality to support disconnected use of the system in instances where internet or wireless is unavailable or unreliable?

• If so, detail what functionality is available with the disconnected solution


Consumer/Family/Other Care Provider Portals

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What “portal” capabilities its software has for outside parties to securely access the

system

Detail what functionality is available with the

various portals

What is the software’s current status with

regards to Meaningful Use as prescribed by the Centers for Medicare &

Medicaid Services (CMS)?

What plans are in place for supporting

requirements under Stage 2 and Stage 3?


Meaningful Use Certification & Compliance Plans

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Experience With Integration With Primary Care

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Describe experience with aiding behavioral health providers with integrating with primary care providers through data exchange


Cost

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Detail the cost for its software technology solution

•Clearly distinguish between one-time and on-going costs•Be complete enough (along with the information from the Technical Requirements

section) for you to develop a three-year budget for the proposed solution

Provide the number of users to vendor (named as well as simultaneous) so vendor can respond with cost information


Software Functionality

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Ask the vendor whether its product supports the detailed list of functional specifications

Included an Appendix as part of the RFP

•Vendors can indicate Yes/No to the functional specifications list and make comments


Customer Reference Contact Information

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Ask for list of at least 25 customer contacts•Needed to evaluate vendor

on customer service

Ask vendor to highlight customers similar to your organization or

will reflect satisfaction with the vendor


Additional Information

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Include an optional section where vendors have an opportunity to share any other information they feel would be helpful to you in the selection process


Appendices

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I. Functional specification checklistII. Pricing template (excel spreadsheet)III. Customer reference information form

Give the vendors 30 days to respond to the RFP.

Receive all responses from software vendors

Score vendors on how well they meet your functional

needs

Develop preliminary 5-year budget for each vendor•(Include any required technology

infrastructure upgrades and changes in staffing) so that you can begin to compare cost


Conduct Preliminary Vendor Screening From RFP Responses

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Screening From RFP Responses

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Determine if any of the knock-out factors apply

Select vendors to move to software demonstration phase• Average is inviting 6-10 vendors for

half-day software demonstrations


Conduct Software Demonstrations &Select Finalists

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Develop Likert scoring tool for your staff to use during the software demonstrations

Scoring should be based on core areas of functionality

from RFP

Narrow vendors to 2-3 finalists, based upon both functionality and user-friendliness•In most instances, organizations come to a very quick consensus about finalists at this point in the process


Phase 3 — Vetting Finalists & Making Final Selection


A Structured Approach To Final EHR Demonstrations

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• One- or two-day software demonstrations by your 2-3 vendor finalists

• Structured topics for the demonstrations with your staff subject area experts attending and scoring the vendors


Web-Based Technical Reviews

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Have your technical staff do a web-based “technical review” of the 2 finalists•Determine system configurability•Reporting flexibility•Any other technical factors deemed important by your team


Additional Vetting Of Vendor Finalists

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Reference checks

Current customer site

visits

CEO and management

team interviews

Financial due diligence


Phase 4 — Contract Negotiation & Implementation Preparation


Contracting

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Select the best system available to meet your

needs

Finalize contract and begin implementation •Some purchasers do this

with the 2 finalists

Have the contract reviewed by your attorney before

changes and requests are presented to the

vendor


Key Contract Areas To Review

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I. Contract term and termination clauses

II. Ensuring that all agreed upon functional specifications are included

III. Warranties & limitations

IV. Support and implementation details

V. Software escrow

VI. Costs and cost increases

VII. Payment terms and timelines


Contract Negotiation Tips

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Present all major and minor contract changes requests along with any pricing changes in a single memo

Determine ‘must-have’ versus ‘desired’ changes

• If both parties have clear, fair, and reasonable requests, the negotiation usually goes very quickly

Keep in mind that you are building a long-term relationship


Quick Peek: Key Elements Of An EHR Implementation

Routine Elements•Vendor training

and implementation

•Hardware•Data conversion

Complex Elements•Workflows•Clinical content•System set-up•Billing testing•Reports•Interfaces•Meaningful use•Mobile system use

planning

System Freeze & Final Preparation•Final workflow

testing•Training materials

and execution•Final go-live

preparation

Expanding & Leveraging the EHR Implementation•Implementing more

features•Leveraging data

through business intelligence

•Additional clinical and analytic use


EHR Implementation

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More About Advix


The Industry Best Value

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Designed by behavioral health professionals

•Comprehensive practice management, EHR, and Billing system

•For outpatient, residential, case management, and housing

•For medication assisted treatment, including methadone dispensing

•World class customer service


Our company

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• 20 year old, mission driven organization

• Behavioral health leadership

• Committed to long term partnerships

• Experts in change management and implementation


IV. Questions & Discussion


www.advixehr.com855.329.2290

http://www.advixehr.com/

Creating solutions. Expanding opportunities.

OPEN MINDS is the premier market intelligence and management consulting firm specializing in the mental health field and the sectors of the health and health and human service industry serving individuals with chronic conditions and complex support needs.

Our mission is to provide the provider and payer organizations in this market – as well as the technology, pharmaceutical, and biotech firms supporting them – with the market and management knowledge needed to improve their organizational efficiency and effectiveness.

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Creating Solutions. Expanding Opportunities.

25+ years of experience tracking and analyzing the market trends,

spending data, reimbursement data, stakeholders, and innovations

shaping the field.


The market intelligence to navigate.The management expertise to succeed.

www.openminds.com163 York Street, Gettysburg, PA 17325Phone: 717-334-1329 - Email: [email protected]© 2014 OPEN MINDS. All rights reserved. 61

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