To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #77-368-4 with Hayward SNF Healthcare, LLC (dba Hayward Gardens Post Acute)
☒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 Contract Amendment #77-368-4 with Hayward SNF Healthcare, LLC (dba Hayward Gardens Post Acute), a limited liability company, effective January 1, 2026, to amend Contract #77-368-3, to include the Dual Eligible Special Needs Plan (D-SNP) obligations and requirements, authorizing the Contractor to provide specialized care to beneficiaries who are dually eligible for Medicare and Medi-Cal and offer care coordination and wrap-around services, with no change in the original payment limit of $3,000,000 and with no change in the term ending August 31, 2027.
FISCAL IMPACT:
Approval of this Contract Amendment will not impact the payment limit of $3,000,000 and is 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 and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since September 1, 2021.
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 September 24, 2024, the Board of Supervisors approved Contract #77-368-3 with Hayward SNF Healthcare, LLC (dba Hayward Gardens Post Acute), in an amount not to exceed $3,000,000, for the provision of SNF services for CCHP members and County recipients for the period September 1, 2024 through August 31, 2027.
Approval of Contract #77-368-4 will allow the Contractor to provide D-SNP specialized care to beneficiaries who are dually eligible for Medicare and Medi-Cal through August 31, 2027. This Contract Amendment is late due to an oversight on behalf of Division staff.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, CCHP will not be compliant with Center for Medicare and Medicaid Services (CMS) Network Adequacy regulatory requirements.