MEDICORE 360 SOFTWARE LICENSE AND SUPPORT AGREEMENT

Procurement reference

CAV-DIR (25-26) 132

Procurement description

The previous contract for 3M™ Medicode 360 (Project 21586), awarded to KCI Medical Limited (now Solventum), provided the Health Board with essential clinical coding encoder software and associated support services. This system supported inpatient coding, HRG grouping, SNOMED CT mapping, and data validation— informatics reporting.

Valued at approximately £168,317.52 over a four-year term, the contract expired in 2024. A new procurement process is now being initiated to maintain continuity of clinical coding services and to assess market alternatives that may offer improved integration, enhanced value for money, and stronger alignment with NHS digital standards.

Cardiff And Vale University Health Board

KCI Medical

Procedure type

Direct award

Description of how these justifications apply

The previous contract (Project 21586) with KCI Medical Limited (now Solventum) provided the Health Board with the 3M™ Medicode 360 clinical coding encoder software and associated support services. This system is deeply embedded within the Health Board’s informatics infrastructure and is used for inpatient coding, HRG grouping, SNOMED CT mapping, and data validation. These functions are critical for accurate revenue reporting and compliance with NHS digital standards. Due to the proprietary nature of the software and its integration with existing systems, only the incumbent supplier can ensure continuity of service without disruption or data loss. No other supplier can provide the same technical solution without significant reconfiguration, retraining, and risk to data integrity.

The 3M™ Medicode 360 system represents a unique and proprietary solution developed by KCI Medical Limited (Solventum). Its design, functionality, and integration capabilities are not replicated by any other supplier in the market. The software’s architecture and clinical coding algorithms are considered intellectual property and are not available through alternative vendors. As such, the system qualifies as a unique performance or creation, and its continued use is essential to maintain consistency in clinical coding and reporting across the Health Board.

Direct award justification

Single suppliers intellectual property exclusive rights

Description of risks to contract performance

There is a moderate risk to continuity of service due to potential system downtime or delays in scheduled maintenance. To mitigate this, the supplier has committed to proactive monitoring, monthly performance reviews, and a responsive support framework. In addition, contingency measures are in place to ensure uninterrupted operation, including access to technical support and pre-planned service interventions.