To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Rescind Prior Board Action Pertaining to Contracted Services with Specialty Laboratories, Inc. (dba Quest Diagnostics Nichols Institute of Valencia)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RESCIND Board action of August 12, 2025 (C.35), which pertained to a payment for services for Specialty Laboratories, Inc. (dba Quest Diagnostics Nichols Institute of Valencia); and APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $201,232.33 to Specialty Laboratories, Inc. (dba Quest Diagnostics Nichols Institute of Valencia), for outside clinical laboratory services provided during the months of January 1, 2024 through July 31, 2024, as recommended by the Health Services Director.
FISCAL IMPACT:
Approval of this payment will result in a one-time expenditure of up to $201,232.33 and will be funded 100% by Hospital Enterprise Fund I revenues.
BACKGROUND:
Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers have an obligation to provide laboratory testing services to patients. On occasion, County contracts with outside laboratory testing services in order to provide testing that requires special equipment not available at county facilities. Contractor has been providing outside clinical laboratory testing services for CCRMC since January 2007.
This Contract is entered into under and subject to the following legal authorities: California Government Code Section 26227 and 31000; Health and Safety Code § 1451. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. CCRMC’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. Contractor is a member of the Vizient Group Purchasing Organization (GPO) and per Administrative Bulletin 600.3, GPO members are exempt from solicitation requirements.
On February 28, 2023, the Board of Supervisors approved Contract #26-583-33 with Specialty Laboratories, Inc. (dba Quest Diagnostic Nichols Institute of Valencia), in an amount not to exceed $5,000,000, for the provision of outside clinical laboratory services for CCRMC and Contra Costa Health Centers, for the period January 1, 2023 through December 31, 2024.
On July 11, 2023, the Board of Supervisors approved Contract Amendment Agreement #26-583-35 with Specialty Laboratories, Inc. (dba Quest Diagnostic Nichols Institute of Valencia), effective July 1, 2023, to provide additional outside clinical laboratory services, with no change in the payment limit of $5,000,000 or term ending December 31, 2024.
On August 12, 2025, the Board of Supervisors approved C.35 for a payment for services, however, the dates of service May 1, 2024 through December 31, 2024 on the Board Order were incorrect. This Board Order will rescind that incorrect Board Order and allow the Auditor-Controller, or designee, to pay $201,232.33 to the Contractor for outside clinical laboratory services for the months of January 1, 2024 through July 31, 2024.
CONSEQUENCE OF NEGATIVE ACTION:
If the recommendation is not approved, the prior incorrect Board action will stand and the Contractor will not be paid for services requested by County staff and provided by Contractor provided in good faith.