To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-676-2 with CHME, Inc. (dba California Home Medical Equipment)
☒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 #77-676-2 with CHME, Inc. (dba California Home Medical Equipment), a corporation, in an amount not to exceed $600,000, to provide Durable Medical Equipment (DME) and related services for Contra Costa Health Plan (CCHP) members and County recipients, for the period August 1, 2026 through July 31, 2028.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $600,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain DME and related services for its members under the terms of their Individual and Group Health Plan membership Contracts with the County. 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 will cooperate with and participate 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 Contractor is part of the CCHP Provider Network and has been providing DME services while fostering a deep understanding of the CCHP organization’s mission, values, and long-term objectives since August 2024. The nature of the DME services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. Per Administrative Bulletin 600.3 the Department has posted a continuous Request for Qualifications and maintains a current qualified list of vendors at all times.
On July 23, 2024, the Board of Supervisors approved Contract #77-676 with CHME, Inc. (dba California Home Medical Equipment), in an amount not to exceed $400,000, for the provision of DME services for CCHP members and County recipients, for the period August 1, 2024 through July 31, 2026.
On October 7, 2025, the Board of Supervisors approved Contract Amendment #77-676-1 with CHME, Inc. (dba California Home Medical Equipment), to include the Dual Eligible Special Needs Plan (D-SNP) authorizing the Contractor to provide specialized care to beneficiaries who are dully eligible for Medicare and Medi-Cal and offer care coordination and wrap-around services, with no change in the original payment limit or term.
Approval of Contract #77-676-2 will allow the Contractor to continue providing DME services for CCHP members and County recipients through July 31, 2028.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, certain DME 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.