To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Contract Amendment #76-556-8 with Laboratory Corporation of America
☒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 #76-556-8 with Laboratory Corporation of America, a corporation, to amend Contract #76-556-5 (as amended by Contract Amendments #76-556-6 and #76-556-7), effective April 1, 2025, to increase the payment limit by $300,000, from $325,000 to a new payment limit of $625,000, for additional outside laboratory testing services for Contra Costa Regional Medical Center (CCRMC) with no change in the term ending April 30, 2026.
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional expenditures of up to $300,000 over a three-year period as budgeted by the department and funded 100% by Hospital Enterprise Fund I. (No rate increase)
BACKGROUND:
CCRMC and Contra Costa Health Centers have an obligation to provide laboratory testing services to patients. On occasion, the County contracts with outside laboratory testing services in order to provide testing that requires special equipment not available at County facilities. CCRMC’s Pathology laboratory sends out test(s) for consultation, such as Human papillomavirus (HPV) for pap co-test, Immunohistochemistry (IHC) for diagnostic treatment of disease, HER2FISH for breast treatment and flow cytometry for diagnosis of leukemia as well as clinical lab testing when needed. This Contractor has been providing outside clinical laboratory testing services for CCRMC since May 2017.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. Contractor is a member of the Vizient Group Purchasing Organization (GPO) and per Administrative Bulletin 600.3, GPO members are exempt from solicitation requirements.
On October 3, 2023, the Board of Supervisors approved Contract #76-556-5 with Laboratory Corporation of America, in an amount not to exceed $325,000 to provide outside laboratory testing services, including HER2FISH test for breast cancer treatment, and flow cytometry test for leukemia treatment for the period from May 1, 2023 through April 30, 2026.
On September 24, 2024, the Board of Supervisors approved Contract Amendment #76-556-6 with Laboratory Corporation of America, effective September 1, 2024, to provide additional outside laboratory testing services, with no change in the payment limit or term.
On December 17, 2024 the Board of Supervisors approved Contract Amendment #76-556-7 to incorporate a Laboratory Interface System Agreement for outside laboratory testing services with no change in the term.
Approval of Contract Amendment #76-556-8 will allow the Contractor to provide additional outside laboratory testing services, including cancer screening tests, H pylori breath tests, and various immunofluorescent testing provided by Contractor with quicker resulting and lower cost to County through April 30, 2026. This Contract Amendment is submitted retroactively due to lack of real time knowledge of expenditures.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, Contractor will not be paid for additional outside laboratory testing services.