To: Board of Directors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #76-675-7 with University of California San Francisco (dba UCSF Medical 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 #76-675-7 with University of California San Francisco (dba UCSF Medical Center), a government agency, to amend Contract #76-675-6, effective August 1, 2024, to modify the rate schedule to include fiscal year effective dates and reduce technical fees for outside laboratory testing services for Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers with no change in the payment limit of $90,000 or term ending July 31, 2027.
FISCAL IMPACT:
Approval of this Contract Amendment will not result in additional expenditures and will remain 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. 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. The Contractor has been providing laboratory testing services since 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. Per Administrative Bulletin 600.3, intergovernmental agreements are exempt from solicitation requirements. CCRMC’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations.
On February 25, 2025, the Board of Supervisors approved Contract #76-675-6 (C.69) with University of California San Francisco (dba UCSF Medical Center), in an amount not to exceed $90,000, to provide laboratory testing services for CCRMC and Contra Costa Health Centers for the period from August 1, 2024 through July 31, 2027. This Contract includes mutual indemnification to defend, indemnify and hold harmless both parties for any claims arising out of the performance of this Contract to the extent such claims are caused by the indemnifying party’s negligent or intentional acts.
UCSF Medical Center has adjusted its pricing to reflect lower costs for tests done outside of hospital systems and these adjustments effect pricing going back to 2024. Approval of Contract Amendment #76-675-7 will allow the Contractor to continue to provide outside laboratory testing services under the revised rate schedule and for the department to pay outstanding invoices with corrected pricing. No additional tests are included in the revised rate schedule. This Contract Amendment is submitted retroactively due to an oversight that resulted in the revised rates not being submitted for timely processing.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, Contractor will not be paid for outside laboratory testing services.