To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Cancellation Agreement #77-467-4 with Danville Long-Term Acute, Inc. (dba Danville Post-Acute Rehab) and Contract #77-467-5 with Mountain Violet Healthcare, Inc. (dba Danville Post-Acute Rehabilitation)
☒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, as follows: (1) Cancellation Agreement #77-467-4 with Danville Long-Term Acute, Inc. (dba Danville Post-Acute Rehab), a corporation, effective at the end of business on October 7, 2025; and Contract #77-467-5 with Mountain Violet Healthcare, Inc. (dba Danville Post-Acute Rehabilitation), a corporation, formally known as Danville Long-Term Acute, Inc. (dba Danville Post-Acute Rehab), in an amount not to exceed $3,000,000, to provide Skilled Nursing Facility (SNF) services for Contra Costa Health Plan (CCHP) members and County recipients, for the period October 8, 2025 through September 30, 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 SNF health care services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. Members are released from the hospital to recover at an SNF until they are well enough to be sent home. These services include but are not limited to: twenty-four (24) hour medical care, social service and case management coordination, wound care, respiratory therapy, nasogastric and gastric tube feeding, physical and speech therapy services. Contractor’s proven track record and established reputation within the medical community mitigates potential risks associated with CCHP’s success and patient well-being. This Contractor has been a part of the CCHP Provider Network providing SNF services, formally under a different business name and fostering a deep understanding of the CCHP organization’s mission, values, and long-term objectives since May 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. 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 SNF services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
On May 14, 2024, the Board of Supervisors approved Contract #77-467-3 with Danville Long-Term Acute, Inc. (dba Danville Post-Acute Rehab), in an amount not to exceed $3,000,000, for the provision of SNF services for CCHP members and County recipients for the period May 1, 2024 through April 30, 2026.
In consideration of the Contractor’s agreement to continue providing SNF services and the department’s need to show change in the Contractor’s SNF’s ownership, the department and Contractor have agreed to (1) mutual cancellation of the current Contract in accordance with General Conditions Paragraph 5 (Termination) of the Contract, (Cancellation Agreement #77-467-4) will accomplish this Cancellation, and (2) establish a new Contract with the correct terms and conditions for the next two years.
Under new Contract #77-467-5, Contractor will provide SNF services for CCHP members and County recipients for the period October 8, 2025 through September 30, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this new Contract is not approved certain specialized SNF services for CCHP members under the terms of their Individual and Group Health Plan membership contracts with the County will not be provided and may cause a delay in services to CCHP members.