To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Cancellation Agreement #26-515-22 and Contract #26-515-23 with Virtual Radiologic Professionals of California, P.A.
☒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 #26-515-22 with Virtual Radiologic Professionals of California, P.A., a corporation, effective at the end of business on January 16, 2024; and (2) Contract #26-515-23 with Virtual Radiologic Professionals of California, P.A., a corporation, in an amount not to exceed $2,025,000, to provide teleradiology services at Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers, for the period January 17, 2024 through January 16, 2027.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $2,025,000 over a three-year period and will be funded 100% by Hospital Enterprise Fund I. (Rate increase)
BACKGROUND:
Due to the limited number of specialty providers available within the community, CCRMC relies on contracts to provide necessary specialty health services for their patients. CCRMC has been contracting with Virtual Radiologic Professionals of California, P.A. since March 2005. This contractor provides afterhours diagnostic imaging interpretation services for CCRMC and Emergency Departments. 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 meets all qualifications and capabilities required to read diagnostic imaging sources through the contractor’s teleradiology equipment and provide final reading results afterhours for CCRMC and Emergency Departments. This contractor continually provides quality results which makes them a reliable choice for continuing safe and high-quality radiology services for acute care patients. This contractor has developed proprietary medical technologies that are critical to the success of quality of care out outcomes for patients. This contractor has invested in integration, technology, and operational workflows that have developed a successful and sustainable care model during the continued long-term relationship with the county. This contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. This contractor has been approved by the Public Works Department’s Purchasing Division on August 22, 2023.
On October 18, 2022, the Board of Supervisors approved Contract #26-515-19 with Virtual Radiologic Professionals of California, P.A., in an amount not to exceed $1,200,000 for the provision of afterhours teleradiology services for CCRMC and Contra Costa Health Centers for the period from December 1, 2022 through November 30, 2025.
In consideration of county’s difficulty in retaining qualified diagnostics radiologists for teleradiology services due to noncompetitive wages, and contractor’s agreement to continue providing services, 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 #26-515-22) will accomplish this cancellation, and (2) establish a new contract with increased rates for the next three years.
Approval of Contract #26-515-23 will allow the contractor to continue providing teleradiology services, through January 16, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, contractor will not be able to provide teleradiology services for CCRMC and Contra Costa Health Centers, which may delay services to patients.