Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON -- SELECT -- GOVERNMENT ACCOUNTABILITY

Date:03/15/2006
ATTENDANCE
Time:12:06 PM to 01:22 PM
Hanna
X
Owen
*
Place:SCR 354
Teck
X
Grossman
X
This Meeting was called to order by
Groff
X
Senator Groff
This Report was prepared by
Jeanette Chapman
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Presentation Department of Human Services
Department of Health Care Policy and Financing
Presentation from Colorado counties		-
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12:07 PM -- Briefing from the Colorado Department of Human Services on CBMS

Marva Livingston-Hammons, Executive Director, Department of Human Services, introduced herself and began her presentation to the committee regarding the Colorado Benefits Management System (CBMS). She indicated that sufficient study has not been done to determine whether the implementation of CBMS has resulted in cost savings to the state. The department is trying to track expenditures for CBMS to develop some of this data. She discussed lessons learned in the implementation of a major statewide database program like CBMS. She indicated that a Request for Information (RFI) might have allowed some preliminary investigation of what the needs of the state and the departments were prior to undertaking a major procurement. Additionally, she suggested that, rather than scaling a project down due to lack of funds, the project either be fully funded or postponed until appropriate funds are available. She noted her belief that having "experts" available for consultation to the state for large projects to help address questions, assess expectations, and follow the progress of a project could help to ensure that the state is less likely to have projects that do not meet expectations. Ms. Hammons proposed that future contracts state the point at which a project would be abandoned prior to undertaking a project, to ensure that all parties are aware of expectations.

12:17 PM

Senator Groff asked whether the department has included any of the suggestions Ms. Hammons has proposed in it's contracting system. He also asked about monitoring large projects. Senator Teck asked if the committee could have written copies of Ms. Hammons' suggestions. She agreed to provide these. Senator Teck asked whether there are other systems in the department that may need to be updated.

12:21 PM

Ron Huston, Department of Human Services, came to the table to respond to Senator Teck's questions. He indicated that there is at least one system that would need updating.


12:23 PM

Senator Groff asked how much it would cost the state to bring in a consultant to evaluate and oversee large projects as Ms. Hammons suggested. She indicated she had not thought about what the appropriate amount would be. Senator Hanna indicated that Senator Teck's bill creating a panel of technology experts that is responsible for oversight of all technology projects might provide the kind of oversight Ms. Hammons was proposing. Committee discussion ensued regarding the value of having a contract negotiator to ensure that the state is negotiating successful contracts.

12:32 PM -- Briefing from the Colorado Department of Health Care Policy and Financing on CBMS

Steve Tool, Executive Director, Department of Health Care Policy and Financing, introduced himself and began his presentation regarding the department's experience with the Colorado Benefits Management System (CBMS). He discussed lessons learned from the CBMS experience that may be useful in planning and implementing future expansive information technology projects. He indicated that having multiple departments and multiple directors over the project caused problems in implementing CBMS. He stated his belief that having one director overseeing the entire project would have resulted in greater organization and accountability. Mr. Tool also discussed the benefits of having a vendor that is fully invested in the project, to ensure adequate and timely response to problems. Mr. Tool discussed more recent technology contracts that the department has been involved in since CBMS that have gone more smoothly. Mr. Tool noted that it is his belief that CBMS has been very successful following initial problems. The department has found that claims and questions are handled more efficiently since the implementation of the program. Senator Hanna asked about the final cost of CBMS to the state. She also asked how many employees associated with the project are employees of the state. There are approximately 36 employees who work on the project,

12:52 PM

Ms. Livingston-Hammons, Executive Director, Department of Human Services, returned to the table to discuss the questions regarding cost. She noted that the original cost estimate for the entire project had been approximately $209 million.

12:54 PM

Senator Groff asked about creating a user preparedness component to the contracting process. Mr. Tool agreed that having such a component could be beneficial to ensure a smooth implementation of a project. Senator Owen indicated his belief that the state has done a good job getting CBMS working properly. He stated that other statewide database systems, such as CJUS had taken as much as five years to bring up to speed. He stated his belief that there will be opportunities to expand on the project to include additional aspects of human services support to Colorado citizens. Senator Groff asked about the role of the counties in implementing the program. Mr. Tool noted that the department has been working to improve communication between the department and the counties around Medicaid issues. Senator Teck asked for a written copy of the department's presentation.

01:00 PM -- Briefing from County Representatives On CBMS

Jeanne Nicholson, Chair, Health and Human Services Steering Committee, Colorado Counties Inc., introduced herself and presented the counties experience in implementing CBMS. She indicated that the counties have made significant progress in improving the way the program works to provide benefits to clients. She emphasized the counties belief that the system will be useful. Ms. Nicholson did indicate, however, there are still problems that the counties are trying to work through regarding the implementation of the system. She agreed with the comments on lessons learned presented by both Ms. Hammons and Mr. Tool. The counties experiences are along the lines of what their preceding testimony had indicated.


01:08 PM

Senator Teck asked about ensuring that individuals who will be responsible for implementing a new program have proper training in anticipation of the rollout of a project. Ms. Nicholson indicated that for the most part, counties were anxious to participate in training, with a few exceptions. She indicated that, in her experience, there were some problems with the training initially provided to county human services staff members who would be working with CBMS. The training did not initially provide much useful application of what was being discussed. That issue appears to have been resolved, she said, as she has heard positive things from staff who have attended later trainings.

01:13 PM

Senator Owen asked if there was a way to track CBMS dollars as they are spent in the county. Pat Ratliff, Colorado Counties, Inc., came to the table to explain how the counties are spending the money for CBMS. Because the counties must spend the money first, itemize how the money has been spent, and then be reimbursed by the state, it might appear that the CBMS money is going to the county's general fund. Ms. Ratliff indicated that in that case, the county is simply reimbursing itself for expenses used for CBMS purposes. Senator Teck asked for a written copy of Ms. Nicholson's perspective on lessons learned.

01:18 PM

Senator Groff asked about the response period to rectify cases in which a client is determined ineligible even though they are actually eligible. Ms. Nicholson responded that the time varies. Senator Hanna asked how counties had dealt with problems with ensuring individuals who need certain medications or care while their eligibility was being determined.

01:22 PM

The committee adjourned.