To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #77-326-4 with Vale Operating Company, LP (dba Vale Healthcare 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 #77-326-4 with Vale Operating Company, LP (dba Vale Healthcare Center), a limited partnership, in an amount not to exceed $18,000,000, to provide Skilled Nursing Facility (SNF) services to Contra Costa Health Plan (CCHP) members and County recipients, for the period May 1, 2024 through April 30, 2027.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $18,000,000 over a three-year period and will be funded 100% by CCHP Enterprise Fund II revenues. (Rate increase)
BACKGROUND:
CCHP has an obligation to provide certain SNF services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. Members are released from the hospital to recover at an SNF until they are well enough to be sent home. These services include but are not limited to: twenty-four (24) hour medical care, social service and case management coordination, wound care, respiratory therapy, nasogastric and gastric tube feeding, physical and speech therapy services. This contractor has been a part of the CCHP Provider Network providing these services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since May 1, 2021.
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. This contractor currently 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 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
On April 20, 2021, the Board of Supervisors approved Contract #77-326 with Vale Operating Company, LP (dba Vale Healthcare Center), in an amount not to exceed $1,310,000, for the provision of SNF services for CCHP members and County recipients, for the period May 1, 2021 through April 30, 2023.
On February 7, 2023, the Board of Supervisors approved Contract Extension Agreement #77-326-2 with Vale Operating Company, LP (dba Vale Healthcare Center), to extend the termination date from April 30, 2023 to April 30, 2024 with no change in the payment limit of $1,310,000, to provide additional SNF services for CCHP.
Approval of Contract #77-326-4 will allow the contractor to continue providing SNF services to CCHP members and County recipients through April 30, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, certain SNF 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.