To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Rescind Prior Board Action Pertaining to Contracted Services with Cotiviti, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
Board action of April 14, 2026 (C.61), which pertained to a contract amendment with Cotiviti, Inc.; and APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment #27-791-15 with Cotiviti, Inc., a corporation, effective April 28, 2026, to amend Contract #27-791-14, to increase the payment limit by $2,250,000, from $3,000,000 to a new payment limit of $5,250,000, and to extend the termination date from October 31, 2028 to October 31, 2029 for additional code editing and validation capabilities concerning its hosted software solution for analyzing Healthcare Effectiveness Data and Information Sets (HEDIS) for fraud, waste and abuse for Contra Costa Health Plan (CCHP).
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional contractual service expenditures of up to $2,250,000 and will be budgeted by the department in FY’s 2026-29 and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
This Contract Amendment meets the needs of the County by providing proprietary data analysis software for HEDIS projects and reports to support State and contractual requirements for CCHP. Cotiviti, Inc., provides its licensed program, Quality Intelligence, used by CCHP to calculate and analyze HEDIS measures. HEDIS Measures, are a requirement for accreditation certification with the National Committee for Quality Assurance (NCQA) and mandated by the Department of Health Care Services, for which CCHP is assessed. HEDIS scores are used to determine Plan assignment, and therefore impact capitation payments from the state. HEDIS is also utilized for Quality Rate Factor payments in which capitation is not only based on monthly membership numbers but also HEDIS scores in comparison to other Plans. HEDIS is a heavily structured, highly audited process and calculations will not be accepted without the use of NCQA certified software to process the data. Under this Contract, Cotiviti provides the NCQA software to process the data.
On October 21, 2025, the Board of Supervisors approved Contract #27-791-14 with Cotiviti Inc., in an amount not to exceed $3,000,000 for the provision its hosted software utilized by CCHP to analyze healthcare effectiveness and identify fraud, waste and abuse for the period November 1, 2025, through October 31, 2028.
On April 14, 2026, the Board of Supervisors approved Contract Amendment #27-791-15 with Cotiviti Inc., to increase the payment limit by $2,250,000 to an amount not to exceed $5,250,000 and to extend the termination date through October 31, 2028 to provide additional hosted software to analyze healthcare effectiveness and identify fraud, waste and abuse for the CCHP, however, the Contract termination date on the Staff Report was incorrect.
This Staff Report will rescind the prior Board action and allow the Department to correct the Contract term to be extended through October 31, 2029.
Approval of this Contract Amendment #27-791-15 will allow the Contractor to provide additional hosted software solution and services regarding code editing and validation capabilities concerning its Quality Intelligence Application Service Provider (ASP), a HEDIS-licensed program and data analysis solution which aids in identifying fraud, waste, and abuse schemes affecting CCHP through October 31, 2029.
Under this Contract Amendment, Cotiviti’s liability, including its indemnity obligations, is limited to the amount paid by County under the Contract except for bodily injury, death, fraud or criminal acts by Cotiviti, which is not capped, and any claims that an unauthorized party accessed protected health information in the Cotiviti-hosted system, which is capped at $5,000,000. The Contract requires Cotiviti to maintain $5,000,000 in cyber-liability insurance.
CONSEQUENCE OF NEGATIVE ACTION:
If the recommendation is not approved, the prior incorrect Board action will stand, and the Contract term will not match the contract terms of the executed agreement, nor reflect the intent of the parties. The County will not have access to Contractor’s data analysis software solution, nor funds to reimburse Providers, per requirements from the Department of Managed Healthcare, and Department of Health Care Services, which will negatively impact CCHP’s ability to operate and ultimately patient care.