To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Services Provided by Children’s Hospital & Research Center at Oakland (dba UCSF Benioff Children’s Hospital Oakland)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, to pay an amount not to exceed $13,375 to Children’s Hospital & Research Center at Oakland (dba UCSF Benioff Children’s Hospital Oakland) for the provision of increased laboratory testing services for Contra Costa Regional Medical Center (CCRMC) for the period April 1, 2023 through June 30, 2023.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure in an amount not to exceed $13,375 and will be funded by Hospital Enterprise Fund I.
BACKGROUND:
CCRMC and Contra Costa Health Centers have an obligation to provide medical laboratory testing services for patients. Therefore, when specialized patient specimen testing is required for patient care and when the required testing equipment is not available at county facilities, the county contracts with outside laboratory testing services to provide specialized testing services. Contractor has been providing laboratory testing services since 2017 formerly under a purchase order with CCRMC.
In May 2021, the County Administrator approved and the Purchasing Services manager executed Contract #76-651-2 with Children’s Hospital & Research Center at Oakland (dba UCSF Benioff Children’s Hospital Oakland) in the amount not to exceed $195,000, for the provision of laboratory testing services for CCRMC, for the period April 1, 2023 through June 30, 2023.
The Department received an invoice in July 2023 for laboratory services provided in April, May and June of 2023 exceeding the contract payment limit of $195,000 by $13,375. In order to meet the unexpected increase in laboratory testing services required for patient care, additional services were requested by county and provided by contractor in good faith.
The contractor is entitled to payment for the reasonable value of its services under the equitable relief theory of quantum meruit. That theory provides that where a contractor has been asked to provide services without a valid contract, and the contractor does so to the benefit of the county, the contractor is entitled to recover the reasonable value of those services. The contractor has provided services at the request of the county after the original contract payment limit had been reached. The Department cannot pay contractor for services rendered that exceed the contract limits. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $13,375 payable to Children’s Hospital & Research Center at Oakland (dba UCSF Benioff Children’s Hospital Oakland).
CONSEQUENCE OF NEGATIVE ACTION:
If this Staff Report is not approved, the contractor will not be paid for services requested by county staff and provided by contractor.