To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for Services Provided by Recover Medical Group P.C.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $15,431.36 to Recover Medical Group P.C., for additional outpatient telehealth services provided to individuals with substance use disorder (SUD) throughout Contra Costa County, for the period of January 1, 2025 through June 30, 2025, as recommended by the Health Services Director.
FISCAL IMPACT:
Approval of this payment will result in a one-time expenditure of up to $15,431.36 and will be funded 100% by Federal Medi-Cal revenues.
BACKGROUND:
This Contract meets the social needs of County’s population by providing specialized substance use disorder treatment services for County youth. The County has been contracting with the Contractor since 2023 to provide outpatient telehealth services to youth with SUD throughout the County.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. BHSD’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. Per Administrative Bulletin 600.3, the Department has posted a continuous Request for Qualifications and maintains a current qualified list of vendors at all times.
In September 2024, the Purchasing Services Manager executed Contract #74-673-1 with Recover Medical Group, P.C., in an amount not to exceed $56,812, to provide alcohol and drug abuse prevention and treatment services, for the period July 1, 2024 through June 30, 2025.
In March 2025, the Purchasing Services Manager executed Contract Amendment #74-673-2 with Recover Medical Group, P.C., effective July 1, 2024, to revise the rate schedule with no change in the payment limit and term ending June 30, 2025.
In May 2025, the Purchasing Services Manager executed Contract Amendment #74-673-3 with Recover Medical Group, P.C., effective October 1, 2024, to revise the rate schedule with no change in the payment limit and term ending June 30, 2025.
Due to an increase in alcohol and drug abuse prevention and treatment services needed by individuals with SUD, additional services were requested by the County without sufficient time to amend the Contract. Contractor provided these services in good faith, which exceeded the original payment limit by $15,431.36.
Therefore, the County has determined that Recover Medical Group, P.C., is entitled to payment for the reasonable value of their services under the equitable relief theory of quantum meruit. That theory provides that where a person has been asked to provide services without a valid contract, and the provider does so to the benefit of the recipient, the provider is entitled to recover the reasonable value of those services. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $15,431.36 to Recover Medical Group, P.C.
CONSEQUENCE OF NEGATIVE ACTION:
If this payment is not approved, the Contractor will not be paid for services requested by BHSD and provided by Contractor provided in good faith.