To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #77-444-1 with BioReference Health, LLC
☒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 #77-444 with BioReference Health, LLC (formally known as Bio-Reference Laboratories, Inc.), a limited liability company, in an amount not to exceed $300,000, to provide clinical laboratory testing services for Contra Costa Health Plan (CCHP) members and county recipients, for the period February 1, 2024 through January 31, 2027.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $300,000 over a 3-year period and will be funded 100% CCHP Enterprise Fund II revenues. (No rate increase)
BACKGROUND:
CCHP has an obligation to provide certain specialized outside clinical laboratory testing 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 clinical laboratory testing services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since February 1, 2022. 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.
The nature of these clinical laboratory testing services needed is complex and requires seamless coordination, integration, and collaboration with existing programs, systems, and personnel. This contractor is familiar with CCHP’s specific requirements to help ensure a smoother implementation and delivery process. There are a total of 12 providers for clinical laboratory testing services in CCHP ‘s service area. CCHP is currently contracted with all 10 clinical laboratories. This contract renewal will maintain comprehensive area coverage for the entire CCHP membership and meet the Knox-Keene Act, time and distance mandate required by the State of California Department of Managed Health Care (DMHC) Services. This contractor has been approved by the Public Works Department’s Purchasing Division on November 13, 2023.
In June 2022, the County Administrator approved and the Purchasing Services Manager executed Contract #77-444 with Bio-Reference Laboratories, Inc., in an amount not to exceed $80,000, for the provision of clinical laboratories testing services for CCHP members and county recipients for the period February 1, 2022 through January 31, 2024.
Approval of Contract #77-444-1 will allow the contractor to continue providing clinical laboratory testing services under their new company name of BioReference Health, LLC, through January 31, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, certain specialized outside clinical laboratory testing health care services for CCHP members will not be provided and may cause a delay in laboratory services for CCHP members.