To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-545-3 with Fremont Ambulatory Surgery Center, L.P. (dba Fremont Surgery Center)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #77-545-3 with Fremont Ambulatory Surgery Center, L.P. (dba Fremont Surgery Center), a limited partnership, in an amount not to exceed $3,000,000, to provide ambulatory surgery center (ASC) services for Contra Costa Health Plan (CCHP) members and County recipients for the period April 1, 2026 through March 31, 2029.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $3,000,000 over a three-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized health care services, including ASC services for its members under the terms of their Individual and Group Health Plan Membership Contracts with the County. This Contractor has been a member of the CCHP Provider Network providing these services and fostering a deep understanding of the CCHP organization’s mission, values and long-term objectives since April 2023.
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 currently cooperates and participates in CCHP’s Quality Management Program which consist of quality improvement activities to improve the quality of care, 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. Per Administrative Bulletin 600.3 CCHP Physician Services are exempt from solicitation requirements.
On March 19, 2024, the Board of Supervisors approved Contract #77-545-1 with Fremont Ambulatory Surgery Center, L.P. (dba Fremont Surgery Center), in an amount not to exceed $620,000 for the provision of ASC services for CCHP members and County recipients for the period April 1, 2024 through March 31, 2026.
On October 7, 2025, the Board of Supervisors approved Contract Amendment #77-545-2 with Fremont Ambulatory Surgery Center, L.P. (dba Fremont Surgery Center), effective January 1, 2026, to include Dual Eligible Special Needs Plan (D-SNP) requirements and obligations, to allow 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 payment limit of $620,000 or term.
Approval of Contract #77-545-3 will allow the Contractor to continue to provide ASC services through March 31, 2029.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, certain ASC services for CCHP members under the terms of their Individual and Group Health Plan membership contracts with the County will not be provided and may cause a delay in services to CCHP members.