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Health department wins approvals for multiple IT, lab and immunization contracts; lawmakers press for procurement clarity

February 06, 2025 | Fiscal Review, Joint, Committees, Legislative, Tennessee


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Health department wins approvals for multiple IT, lab and immunization contracts; lawmakers press for procurement clarity
The Fiscal Review Committee on March 27 approved a package of contracts for the Tennessee Department of Health to maintain and upgrade software systems, laboratory sequencing instruments and the statewide immunization information system.

Department officials said the approvals are needed to keep patient tracking, electronic health record and laboratory sequencing systems operating while staff prepare competitive procurements or implement upgrades. Commissioner Ralph Alvarado and department liaisons described several measures as “bridge” or renewal actions needed to avoid service interruptions.

Key items approved
- An amendment to the contract with Infor LLC to extend Cloverleaf software maintenance and support and add $131,688.58 in funds, bringing the amended maximum liability to $930,101.58. Commissioner Ralph Alvarado told the committee 85% of that contract is state funded and 15% federally funded, and he apologized for an earlier notice timing issue that required a 60‑day waiver.
- A new multi‑year contract with Document Storage Solutions Inc. for maintenance, support and upgrade work on the Electronic Public Health Information system (EPI) and as a bridge toward a modern electronic health record (EHR).
- An amendment combining Illumina reagent and instrumentation contracts to support DNA sequencing used for pathogen tracking, described as a requirement tied to multiple Centers for Disease Control and Prevention (CDC) programs.
- An amendment to Netsmart Technologies Inc. to update transition, ownership and warranty language for the patient tracking/billing management information system (PTBMIS); department officials said an upcoming EHR upgrade will ultimately replace some PTBMIS functions.
- A sole‑source multi‑year contract with Revidi (Rebidi) for FDA‑approved instrumentation and reagents for the newborn screening program; the assistant director of newborn screening said the product line carries FDA approval that standardizes testing across laboratories.
- A one‑year extension and funding increase for SCC Health Inc., which provides maintenance and support for the Tennessee Immunization Information System (state immunization registry). Several members sought detail on revised scope and milestones the department will report, particularly where federal CDC modernization language appears in the amendment.

Lawmakers pressed for clarity on sole‑source decisions and longer‑term procurement plans. Senator Yarborough and other members asked why Document Storage and Netsmart amendments were sole‑source; John Webb, deputy commissioner, said the department intends the upgrades as a short‑term bridge while it writes a more precise, competitive RFP. Webb said the department plans to hire a third party to help write a future RFP and expects a competitive procurement in roughly a year or two.

On immunization system changes, Senator Watson and others asked whether new scope language requires additional reporting to CDC. The department replied the amendment adds modernization and functionality language tied to CDC’s data modernization initiative and said it would provide committee members with the specific metrics and milestone definitions after the meeting.

Votes at a glance
- Infor LLC (Cloverleaf) amendment: approved (two‑thirds roll‑call required and recorded). Added $131,688.58; amended maximum liability $930,101.58; 85% state / 15% federal funding noted.
- Document Storage Solutions — new multi‑year contract for EPI/EHR bridge: approved.
- Illumina reagents/instrumentation amendment: approved.
- Netsmart Technologies PTBMIS amendment: approved; department said the upcoming EHR upgrade will assume many functions.
- Revidi (newborn screening) sole‑source multi‑year contract: approved.
- SCC Health Inc. (Tennessee Immunization Information System) one‑year extension and increased funding: approved; committee requested details on revised milestones and scope.
- Tyler Technologies (Versa) renewal amendment: approved.

Why it matters: the contracts affect core public health infrastructure — patient records, immunization records and laboratory sequencing used for disease surveillance — and members asked for clearer procurement timelines and documentation so future competitive procurements can proceed without repeated contract extensions.

Committee directions and follow up: department staff committed to provide specific milestone language and scope clarifications for the SCC Health amendment and to update members on the schedule and third‑party support for writing the EHR RFP.

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