To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for Services Provided by East Bay Audiologists, A Professional Corporation
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $19,059 to East Bay Audiologists, A Professional Corporation, for the provision of audiology evaluation services and audiological supplies including hearing evaluations, hearing aid evaluations, fittings, dispensing and procurement of hearing aids at Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers, for the period August 1, 2026 through August 31, 2026, as recommended by the Health Services Director.
FISCAL IMPACT:
Approval of this payment will result in a one-time expenditure of up to $19,059 and will be funded 100% by Hospital Enterprise Fund I revenue.
BACKGROUND:
Due to the limited number of specialty providers available within the community, CCRMC and Contra Costa Health Centers rely on contractors to provide necessary audiology specialty health services to its patients. County has been contracting with East Bay Audiologists, A Professional Corporation for audiology evaluation services and supplies since September 2015.
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. CCRMC’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 600.4, CCRMC Physician services are exempt from solicitation requirements.
On August 15, 2023 the Board of Supervisors approved Contract #26-140-7 with East Bay Audiologists, A Professional Corporation, in the amount of $2,205,000 to provide audiology evaluation services and supplies including hearing evaluations, hearing aid evaluations, fittings, dispensing and procurement of hearing aids at CCRMC and Contra Costa Health Centers for the period of September 1, 2023 through August 31, 2026.
On August 6, 2024 the Board of Supervisors approved Contract Amendment #26-140-8, effective August 1, 2024, to increase the payment limit by $750,000, from $2,205,000 to a new payment limit of $2,955,000, with no change to the term ending August 31, 2026.
Due to an administrative oversight, the Contractor exceeded the contract payment limit when it appeared they had adequate funding for the final month of the contract. After further research, the Department learned that the Contractor’s average monthly spend was higher than in previous years. Contractor provided these services in good faith, which exceeded the original payment limit by $19,059.
Therefore, the County has determined that East Bay Audiologists, A Professional Corporation, 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 $19,059 to East Bay Audiologists, A Professional Corporation.
CONSEQUENCE OF NEGATIVE ACTION:
If this payment is not approved, the Contractor will not be paid for services the Contractor provided in good faith.