To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Contract Amendment #77-069-4 with Sun Healthcare and Surgery Group, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Interim Health Services Director, or designee, to execute on behalf of the County Contract Amendment #77-069-4 with Sun Healthcare and Surgery Group, Inc., a corporation, to amend Contract #77-069-3, effective June 1, 2025, to increase the payment limit by $200,000, from $4,800,000 to a new payment limit of $5,000,000 to add primary care physician (PCP) services in addition to providing wound care and podiatry services to Contra Costa Health Plan (CCHP) members and County recipients, with no change in the original term ending March 31, 2027.
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional contractual service expenditures of up to $200,000 and will be funded 100% by CCHP Enterprise Fund II revenues. (Additional rates)
BACKGROUND:
CCHP has an obligation to provide certain PCP, wound care and podiatry 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 April 1, 2017. 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 March 19, 2024, the Board of Supervisors approved Contract #77-069-3 with Sun Healthcare and Surgery Group, Inc., in an amount not to exceed $4,800,000, for the provision of wound care and podiatry services for CCHP members and County recipients, for the period April 1, 2024 through March 31, 2027.
Approval of Contract Amendment #77-069-4 will allow the Contractor to provide PCP services in addition to providing wound care and podiatry services to CCHP members and County recipients through March 31, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, the additional PCP, wound care and podiatry services 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.