To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Services provided by CardioNet, LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $51,902 to CardioNet, LLC for providing remote cardiac monitoring services for patients at Contra Costa Regional Medical Center (CCRMC) and Health Centers for the period November 16, 2022 through January 6, 2024.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure in an amount not to exceed $51,902 and will be funded by the Hospital Enterprise Fund I revenues.
BACKGROUND:
CCRMC relied on CardioNet, LLC for sleep study devices for nearly a decade but upon a recent industry survey, it was determined that another vendor would better meet the County’s needs. Home sleep study devices provide the ability to capture arrhythmias in patients during their daily activities which is crucial to fully understanding what is occurring in the patient’s heart as many clinically severe arrhythmias only last seconds.
On February 6, 2024, the Board of Supervisors approved item C.84 to pay $80,356 for providing remote cardiac monitoring services for patients at CCRMC and Health Centers for the period August 1, 2023 through October 31, 2023. At the time, this was expected to be the final payment to CardioNet, LLC for outstanding invoices exceeding the payment limit for contract #26-784-13. However, in May 2024, after a change in management staff, it became apparent that services did not cease at the end of October 2023 and that there were additional invoices requiring payment for services between November 2022 through January 2024. The vendor and current cardiology department management have reassured CCRMC that these are the last of the invoices owed to CardioNet, LLC.
The contractor is entitled to payment for the reasonable value of its services under the equitable relief theory of quantum meruit. The 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 requests that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $51,902 payable to CardioNet, LLC.
CONSEQUENCE OF NEGATIVE ACTION:
If this request is not approved, the contractor will not be paid for remote cardiac monitoring services provided for patients at CCRMC and Contra Costa Health Centers outside of the contract payment limit rendered in good faith.