To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for Services Provided by iRhythm Technologies, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $330,300 to iRhythm Technologies, Inc., for providing remote cardiac monitoring services for patients at Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers, for the period of April 1, 2025 through October 31, 2025, as recommended by the Health Services Director.
FISCAL IMPACT:
Approval of this payment will result in a one-time expenditure of up to $330,300 and will be funded 100% by Hospital Enterprise Fund I revenues.
BACKGROUND:
Due to the limited number of specialty providers available within the community, CCRMC and Contra Costa Health Centers rely on contracts to provide necessary specialty health services to its patients. iRhythm Technologies. Inc. has the only Food and Drug Administration (FDA) approved artificial intelligence (Al) algorithm across all cardiac arrhythmia classes and is user friendly. The Zio Patch cardiac monitoring device can quickly and accurately read 1.5 million heart beats per patient record, at the same accuracy as a panel of human experts. The Zio patch cardiac monitoring device is the only wearable patch on the market that can be placed on a patient's chest for up to 14 days uninterrupted.
This Contract is entered into under and subject to the following legal authorities: California Government Code § 26227 and 31000. This contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. Contractor is a Sole Source provider and was approved by the Public Works Department’s Purchasing Division on September 25, 2023, for their expertise in cardiac monitoring services.
On October 17, 2023, the Board of Supervisors approved Contract #76-830 with iRhythm Technologies, Inc., in an amount not to exceed $800,000, to provide remote cardiac monitoring services for patients at CCRMC and Contra Costa Health Centers, for the period November 1, 2023 through October 31, 2025.
Due to an increase in remote cardiac monitoring services needed by CCRMC, additional services were requested by the County without sufficient time to amend the Contract. Contractor provided these services in good faith, which exceeded the original payment limit by $330,300.
Therefore, the County has determined that with iRhythm Technologies, Inc., 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 $330,300 to with iRhythm Technologies, Inc.
CONSEQUENCE OF NEGATIVE ACTION:
If this payment is not approved, the Contractor will not be paid for services requested by CCRMC and provided by Contractor provided in good faith.