To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for claim payments due to Tenet Healthcare Corporation
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
Acting as the Governing Board of the West Contra Costa Healthcare District, APPROVE and AUTHORIZE the West Contra Costa Healthcare District Executive Director, or designee, to pay an amount not to exceed $1,002,663 to Tenet Healthcare Corporation for the pass-through of 2003 MediCare/Medi-Cal claim payments due under the Hospital Transition Agreement between the District and Tenet.
FISCAL IMPACT:
100% funded through Federal Medicare/Medi-Cal reimbursement adjustments.
BACKGROUND:
On December 11, 2025, the West Contra Costa Healthcare District received a payment of $1,002,663, relating to a MediCare/Medi-Cal claim payment for the Fiscal Year ending May 31, 2003. Shortly before receiving this payment, Tenet Healthcare Corporation contacted the District to explain that it had submitted a request to the Centers for Medicare & Medicaid Services (“CMS”) for these monies under CMS regulations (42 CFR 405.1803 and 42 CFR 412.106) that allow reopening and adjustment of cost reports for fiscal years ending in 2002 and 2003.The West Contra Costa Healthcare District previously received payment on December 11, 2025. This recommendation is to correct and complete the necessary administrative formalities.
Because these monies relate to Tenet’s operation from December 31, 1996, to July 31, 2024, of a formerly-owned hospital of the District, Doctor’s Medical Center - San Pablo, CMS sent the payment to the District. These monies are recoverable by Tenet under an agreement entered into between the District and Tenet on July 9, 2004, to facilitate transition of the hospital’s operation back to the District (“Hospital Transition Agreement”). Under the Hospital Transition Agreement, the District is subject to penalties if it does not timely submit the monies to Tenet.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, it may result in penalties and could risk contractual disputes with Tenet Healthcare.