To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #77-346-1 with Associated Pathology Medical Group, Inc.
☒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 #77-346-1 with Associated Pathology Medical Group, Inc., a corporation, in an amount not to exceed $600,000, to provide pathology laboratory services for Contra Costa Health Plan (CCHP) members and County recipients for the period July 1, 2024 through June 30, 2027.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $600,000 over a three-year period and will be funded 100% by CCHP Enterprise Fund II revenues. (No rate increase)
BACKGROUND:
CCHP has an obligation to provide certain outside clinical laboratory testing services, including pathology laboratory 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 pathology laboratory services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since July 2021. This contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; and Health and Safety Code § 1451. Health Services Personnel approved this contract to ensure there is no conflict with labor relations.
This 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. This contract renewal will maintain comprehensive area coverage for the entire CCHP membership and meet the Knox-Keene Act, time and distance mandate required by the State of California Department of Managed Health Care (DMHC) services. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
In July 2021, the County Administrator approved and the Purchasing Services Manager executed Contract #77-346 with Associated Pathology Medical Group, Inc., in an amount not to exceed $99,000, for the provision of pathology laboratory services for CCHP members and County recipients for the period July 1, 2021 through June 30, 2024.
Approval of Contract #77-346-1 will allow the contractor to continue to provide pathology laboratory services for CCHP members and County recipients through June 30, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, certain specialized outside clinical laboratory testing 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 pathology laboratory services for CCHP members.