Solventum Sole Source

The Illinois Department of Healthcare and Family Services (HFS) intends to award a sole source, no-cost contract to Solventum Corporation for a four-year term to provide All Patient Refined Diagnostic Reporting Grouping (APR-DRG) and Enhanced Ambulatory Procedure Grouping (EAPG) Software License and Services. The procurement is specifically for software that classifies and prices inpatient and outpatient hospital services, which is mandated by Illinois legislative order 305 ILCS 5/14-12. The software is critical to HFS's operations, processing hundreds of thousands of hospital claims annually totaling over $5 billion in payments. Deliverables include ongoing software maintenance, support, updates, and compliance with regulatory requirements such as HIPAA and the Illinois Personal Information Protection Act. The contract will run from the approval date until July 15, 2025, with a key deadline of July 18, 2025, at 4 p.m. for potential interested parties to submit written comments or request a public hearing.

The procurement is a sole source contract with no specific set-aside designations or restrictions on responding organizations. Solventum, formerly 3M Health Information Systems, is identified as the sole provider of this proprietary software, which is specifically configured for Illinois Medicaid's requirements and cannot be provided by any other vendor. The software cannot be replicated or obtained from alternative sources, justifying the sole source procurement approach. The estimated value of the software packages is $5,354,806.49, though the contract itself is structured as a no-cost agreement where Solventum will provide the software and services at no charge to the state Medicaid agency. No incumbent vendor is mentioned, as this appears to be a continuation of an existing software licensing arrangement with Solventum.