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: February 26, 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 are unable to process any prescription insurance claims right now which is detrimental to patient care and access to medications. Pharmacies are currently dispensing emergency supplies of medication without receiving payment when patients cannot afford the cash price. Patients who are paying cash will need to be reimbursed once the insurance claim is processed. Each day that claims are not processed increases patient and organization financial risks.

Two primary vendors handle almost all prescription transactions, Change Healthcare and Relay Health. There is no estimated time to restore Change Healthcare’s services. 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 being pursued with Relay Health.

This emergency procurement was approved by Ken Carlisle, Director of Purchasing/Contracting.