To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-437-3 with Central Valley Specialty Hospital, Inc.
☒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 #77-437-3 with Central Valley Specialty Hospital, Inc., a corporation, in an amount not to exceed $3,000,000, to provide long-term acute care (LTAC) services for Contra Costa Health Plan (CCHP) members and County recipients for the period August 1, 2025 through July 31, 2027.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $3,000,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized LTAC services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. This Contractor has been a part of the CCHP Provider Network providing LTAC services including, but not limited to: nursing, respiratory and nutritional therapies, pain management, case management, social services, end of life care services, and fostering a deep understanding of the CCHP organization’s mission, values, and long-term objectives since November 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. 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. The nature of the LTAC services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. Per Administrative Bulletin 600.3, Physician services are exempt from solicitation requirements.
On August 1, 2023, the Board of Supervisors approved Contract #77-437-2 with Central Valley Specialty Hospital, Inc., in an amount not to exceed $3,000,000, for the provision of LTAC services for CCHP members and County recipients for the period August 1, 2023 through July 31, 2025.
Approval of Contract #77-437-3 will allow the Contractor to continue to provide LTAC services for CCHP members and County recipients through July 31, 2027. Contract delay was due to extended negotiations of Contract terms between Contractor and Division.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, certain specialized LTAC services for CCHP members under the terms of their Individual and Group Health Plan membership contracts with the County will not be provided by this Contractor and service may be delayed.