The MyHealth Access Network appeal against the state’s vendor choice to develop its own health information exchange will be put in front of an administrative law judge.
However, Steven Harpe, executive director of Oklahoma Management and Enterprise Services, denied MyHealth’s request to stay the contract award.
Harpe said he found no reasonable basis to grant the stay, noting in a letter to MyHealth on Wednesday that its appeal didn’t address any of four criteria Oklahoma courts have considered in such decisions.
He said the assigned judge will notify MyHealth in a few weeks about scheduling and hearing dates.
MyHealth declined to comment Wednesday.
The state’s purchasing director denied MyHealth’s protest in January, prompting the Tulsa-based nonprofit’s appeal to Harpe two weeks ago.
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The Oklahoma Health Care Authority in December awarded a global technology company a $49.8 million contract to develop OKSHINE — the Oklahoma State Health Information Network.
Orion Health’s winning bid was $8.1 million more than MyHealth’s best and final offer of $41.7 million. Before the contract award was announced, MyHealth had offered an unsolicited bid of $19.9 million after the state publicized a Medicaid change that the nonprofit says allowed for the substantial cost reduction.
MyHealth called the competitive bid process flawed and arbitrary.
State Purchasing Director Dan Sivard wrote that he respected some of MyHealth’s opinions but that none was sufficient to sustain the nonprofit’s protest, denying each ground as without merit.
Rep. Marcus McEntire, R-Duncan, questioned Harpe about the Oklahoma Health Care Authority’s vendor choice on Jan. 28 during a House Appropriations and Budget Committee performance review hearing.
McEntire, who is chair of the House Appropriations Subcommittee on Health, asked why the state is electing to move forward with a company at a cost of $30 million more than what MyHealth could charge.
Harpe responded that MyHealth’s bid history is interesting. He questioned how the company’s original $106 million bid morphed into $41 million for its best and final offer with no change in services. He then noted that the unsolicited offer of $19 million came after all other competitors were told the bidding period had ended.
“In any business practice no one can do that. That’s not a fair and open practice,” Harpe said. “I mean, at that point you don’t know how much information’s out there. It kind of taints the waters, so to speak.
“So when we closed out the open bids, (the $41 million) was the one that was evaluated.”
McEntire asked Harpe whether MyHealth was awarded any points in the bid evaluations for already having a functional health information exchange with existing connections and relationships.
Harpe said he wasn’t aware of any points given for that aspect but added that he trusts the people who made the evaluations.
The budget hearing took place before MyHealth filed its appeal Feb. 9.
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