To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-380-5 with Shattuck Health Care, Inc. (dba Elmwood Nursing and Rehab Center)
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #77-380-5 with Shattuck Health Care, Inc. (dba Elmwood Nursing and Rehab Center), a corporation, in an amount not to exceed $1,400,000, to provide skilled nursing facility (SNF) services for Contra Costa Health Plan (CCHP) members, for the period November 1, 2026 through October 31, 2028.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $1,400,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized SNF health care services for its members under the terms of their Individual and Group Health Plan membership contracts with the county. Members are released from the hospital to recover at an SNF until they are well enough to be sent home. These services include, but are not limited to, twenty-four (24) hour medical care, social service and case management coordination, wound care, respiratory therapy, nasogastric and gastric tube feeding, physical and speech therapy services. As a part of the CCHP Provider Network, this Contractor has delivered SNF services since July 1, 2021, fostering a deep understanding of the CCHP organization’s mission, values, and long-term objectives.
CCHP is also required to maintain network adequacy in accordance with applicable state and federal standards, ensuring that members have timely access to clinically appropriate behavioral health and neuropsychological services. The Contractor supports CCHP in meeting these network adequacy obligations by supplying specialized services that are limited within the local market, thereby helping CCHP uphold required access‑to‑care standards and avoid delays in service delivery.
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 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. The nature of the SNF services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. These contracted services were determined to be exempt from Administrative Bulletin 600.4 solicitation requirements by the Public Works Department’s Purchasing Division.
On December 2, 2024, the Board of Supervisors approved Contract #77-380-3 with Shattuck Health Care, Inc. (dba Elmwood Nursing and Rehab Center), in an amount not to exceed $990,000, for the provision SNF services for CCHP members and County recipients, for the period November 1, 2024 through October 31, 2026.
On October 7, 2025, the Board of Supervisors approved Contract Amendment #77-380-4 with Shattuck Health Care, Inc. (dba Elmwood Nursing and Rehab Center), effective January 1, 2026, to implement the Dual Eligible Special Needs Plans (D-SNPs) authorizing the Contractor to provide specialized care to beneficiaries who are dually 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 #77-380-5 will allow the Contractor to continue to provide SNF services for CCHP members through October 31, 2028.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved certain specialized SNF health care 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.