To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Rescind Prior Board Action Pertaining to Contracted Services with San Ramon Regional Medical Center, LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RESCIND Board action of June 27, 2023 (C.88), which pertained to a contract with San Ramon Regional Medical Center, LLC, and APPROVE and AUTHORIZE the Health Services Director, or designee, to execute Contract #77-557 with San Ramon Regional Medical Center, LLC, a limited liability company, in an amount not to exceed $5,000,000 for the provision of acute inpatient and outpatient hospital services for Contra Costa Health Plan (CCHP) members for the period January 1, 2024 through December 31, 2024.
FISCAL IMPACT:
Approval of this contract will result in annual contractual service expenditures of up to $5,000,000 and will be funded 100% by CCHP Enterprise Fund II.
BACKGROUND:
CCHP has an obligation to provide acute inpatient and outpatient hospital services, including acute rehabilitation, emergency and trauma services, outpatient surgery services, orthotics and wound care for its members under the terms of their Individual and Group Health Plan membership contracts with the county. This contractor will be contracting with the CCHP Provider Network effective January 1, 2024.
San Ramon Regional Medical Center, LLC was selected to provide Acute Care Hospital Services to CCHP Medi-Cal and Commercial members. There are three acute hospital care providers and no providers have been rejected. The medical professional services provided require specific certifications, licenses or DHCS and CMS regulatory approvals that this Contractor has. Contractor’s established compliance history ensures adherence to industry regulations and reduces potential legal and regulatory risks. This contractor will maintain the comprehensive area coverage for the entire CCHP Membership and meet the health care needs of CCHP members and meet the time and distance mandate required by the State of California Department of Managed Health Care Services and assist with the CCHP Single Plan Model which will be effective January 1, 2024. Other sources providing these services are unacceptable as they do not meet the State regulations and accreditation standards required for Medi-Cal Managed Care Plans, such as CCHP. Without having acute care hospital services, CCHP may risk becoming non-compliant with State regulations regarding Managed Medi-Cal members.
The nature of these acute care hospital services needed is complex and requires seamless coordination, integration, and collaboration with existing programs, systems, and personnel. San Ramon Regional Medical Center, LLC is familiar with CCHP’s specific requirements to help ensure a smoother implementation and delivery process. This contractor has been approved by the Public Works Department’s Purchasing Division on December 12, 2023.
On June 27, 2023 the Board of Supervisors approved Contract 77-557 with San Ramon Regional Medical Center, LLC, in the amount of $5,000,000 for the provision of acute care hospital services for the period September 1, 2023 through August 31, 2024. This initial contract was never executed due to extended negotiations and mutual agreement to revise effective date.
This Board Order clarifies the intent of the parties to rescind the prior approved Board action of June 27, 2023 and revise the contract term from September 1, 2023 through August 31, 2024, to a new contract term of January 1, 2024 through December 31, 2024.
CONSEQUENCE OF NEGATIVE ACTION:
If the recommendation is not approved, the prior Board action will stand and will be inconsistent with the revised contract term.