To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract # 77-298-4 with Exact Sciences Laboratories, LLC
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #77-298-4 with Exact Sciences Laboratories, LLC, a limited liability company, in an amount not to exceed $2,800,000, to provide outside diagnostic laboratory testing services including colorectal cancer screening services, for Contra Costa Health Plan (CCHP) members, for the period December 1, 2026 through November 30, 2028.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $2,800,000 over a two-year period and will be funded by 100% CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized outside diagnostic laboratory testing services including, but not limited to, colorectal cancer screening services for its members under the terms of their Individual and Group Health Plan membership contracts with the County, therefore, the County contracts with outside laboratory testing services in order to provide testing services not available at County facilities, to ensure patient care is provided as required. As part of the CCHP Provider Network, this Contractor has delivered these services since December 2020 developing a strong understanding of CCHP’s mission, values, and long‑term objectives.
CCHP must also maintain network adequacy in accordance with applicable state and federal requirements, ensuring members have timely access to clinically appropriate services. The Contractor supports CCHP in meeting these obligations by providing specialized offerings that are limited within the local market, thereby helping CCHP uphold access‑to‑care standards and avoid delays in service delivery.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; Health and Safety Code § 1451. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. Contractor cooperates with and participates in CCHP’s Quality Management Program which consists of quality improvement activities to improve the quality of care and services and member experience. Cooperation includes collection and evaluation of performance measurement data and participation in the organization’s clinical and service measure Quality Improvement Programs. These contracted services were determined to be exempt from Administrative Bulletin 600.4 solicitation requirements by the Public Works Department’s Purchasing Division.
On January 14, 2025, the Board of Supervisors approved Contract #77-298-2 with Exact Sciences Laboratories, LLC, in an amount not to exceed $350,000, for the provision of outside diagnostic lab testing services including colorectal cancer screening services for CCHP members and County recipients, for the period December 1, 2024 through November 30, 2026.
On October 7, 2025, the Board of Supervisors approved Contract Amendment #77-298-3 with Exact Sciences Laboratories, LLC, to include the Dual Eligible Special Needs Plan (D-SNP) authorizing the Contractor to provide specialized care to beneficiaries who are dually eligible for Medicare and Medi-Cal and offer care coordination and wrap-around services, with no change in the original payment limit or term.
Approval of Contract #77-298-4 will allow the Contractor to continue to provide outside diagnostic laboratory testing services through November 30, 2028. The increase in payment limit is based on past utilization and the anticipated volume of requested services.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, certain specialized outside diagnostic laboratory testing services for CCHP members under the terms of their Individual and Group Health Plan membership contracts with the County will not be provided and services may be delayed.