To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Cancellation Agreement #77-625-1 and Contract #77-625-2 with Hayward Healthcare & Wellness Center, 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 as follows: (1) Cancellation Agreement #77-625-1 with Hayward Healthcare & Wellness Center, LLC, a limited liability company, effective at the end of business on October 31, 2024; and Contract #77-625-2 with Hayward Healthcare & Wellness Center, LLC, a limited liability company, in an amount not to exceed $900,000, to provide skilled nursing facility (SNF) services for Contra Costa Health Plan (CCHP) members and County recipients for the period November 1, 2024 through October 31, 2027.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $900,000 over a three-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized SNF 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. This Contractors 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 member in CCHP Provider Network formerly under a Memorandum of Understanding (MOU) and began working under this County required Contract providing SNF services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since Contract on August 1, 2023.
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. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
On August 1, 2023, the Board of Supervisors approved Contract #77-625 with Hayward Healthcare & Wellness Center, LLC, in an amount not to exceed $800,000, for the provision SNF services for CCHP members and County recipients for the period August 1, 2023 through July 31, 2025.
In consideration of the Contractor’s agreement to continue providing SNF services and the departments need to increase rates to maintain an adequate network for CCHP members to meet Department of Health Care Services (DHCS) and Department of Managed Health Care (DMHC) mandates, 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 #77-625-1) will accomplish this cancellation, and (2) establish a new Contract with the correct terms and conditions for the next three years.
Approval of Contract #77-625-2 will allow Contractor to continue to provide SNF services for CCHP members and County recipients through October 31, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved certain specialized SNF health care 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.