To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #77-499-3 with Executive Surgery Center
☒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 #77-499-3 with Executive Surgery Center, a corporation, effective May 1, 2026, to amend Contract #77-499-1 (as amended by Contract Amendment #77-499-2), to increase the payment limit by $1,000,000, from $300,000 to a new payment limit of $1,300,000, to provide additional Ambulatory Surgery Center (ASC) services for Contra Costa Health Plan (CCHP) members and County recipients with no change in the term ending October 31, 2026.
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional expenditures of $1,000,000 and will remain funded 100% by CCHP Enterprise Fund II revenues. (No rate increase)
BACKGROUND:
CCHP has an obligation to provide certain ASC services for its members under the terms of their Individual and Group Health Plan membership Contracts with the County. This Contractor has been a part of the CCHP Provider Network providing these services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since November 1, 2022.
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. Per Administrative Bulletin 600.3 CCHP Physician services are exempt from solicitation requirements.
On October 24, 2023, the Board of Supervisors approved Contract #77-499-1 with Executive Surgery Center, in the amount not to exceed $300,000, for the provision of ASC services for CCHP members and County recipients for the period November 1, 2023 through October 31, 2026.
On October 7, 2025 (C.95), the Board of Supervisors approved Contract Amendment #77-499-2 with Executive Surgery Center, along with 179 CCHP providers on a group Board Order, effective January 1, 2026, to allow CCHP to meet the regulatory mandate of Department of Health Care Services (DHCS) and implement a Dual Eligible Special Needs Plans (D-SNPs) allowing CCHP to meet the mandatory provider network adequacy standards of DHCS and the Center for Medicare and Medicaid Services (CMS) and authorize existing this 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 or term.
Approval of Contract Amendment #77-499-3 will allow the Contractor to provide additional ASC services through October 31, 2026. This increase in the payment limit is due to an unanticipated increase in the utilization of services.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, the additional ASC services needed 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.