The Utah Procurement Code provides that a procurement may be made without competition when the University determines that there is only one source that can reasonably meet the University’s need for the required supply or service, as described in Utah Code Ann. § 63G-6a-802.
The Purchasing Department has received the following request for sole source procurement
Product and/or Service to be purchased: Emergency Notification for RelayHealth Claims Processing
Sole Source Supplier: RelayHealth
Earliest Proposed Purchase Date: March 04, 2024
Buyer Name: Katherine Coons
Sole Source Justification:
On Wednesday, February 21, 2024, Change Healthcare experienced a cyber security issue. This vendor processes claims for prescriptions through pharmacy benefits managers and health plans. Almost all pharmacy transactions process through this electronic insurance switch. University of Utah Pharmacies process approximately 5,000 prescriptions per day and were unable to process any prescription insurance claims through Change Healthcare which is detrimental to patient care and hinders access to medications. Pharmacies were currently dispensing emergency supplies of medication without receiving payment when patients cannot afford the cash price. Patients who were paying cash will need to be reimbursed once the insurance claim is processed. Each day that claims are not processed increases patient and organizational financial risks.
Two primary vendors handle almost all prescription transactions, Change Healthcare and Relay Health. Cyber attacks can take weeks to recover from and restore services. To provide continuity of care for patients and reduce financial liability for the University of Utah, an emergent agreement is currently in place with Relay Health.
The Utah Procurement Code provides that the Director of Purchasing or designee may authorize an emergency procurement and make the following information publicly available on the University Purchasing Website within 14 days of the emergency procurement, as described in Utah Procurement Code 63G-6a-803.