To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-651-2 with Caremax RM Corporation (dba Caremax Pharmacy)
☒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 #77-651-2 with Caremax RM Corporation (dba Caremax Pharmacy), 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 February 1, 2026 through January 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 services, for its members under the terms of their Individual and Group Health Plan membership Contracts with the County. This DME Contract is mandatory to help ensure CCHP is meeting the medical needs of the membership. Their established specialized expertise, experience and knowledge ensures adherence to industry regulations and increases the ability to improve the quality of care to CCHP members. This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; Health and Safety Code § 1451; and Title 22, California Code of Regulations (CCR), Section 51321(g) and Welfare and Institutions Code (W&I Code), Section 14105.395. DME items are medically necessary only to preserve bodily functions essential to activities of daily living or to prevent significant physical disability. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. This Contractor has been a part of the CCHP Provider Network providing these services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since February 1, 2024.
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. 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 January 9, 2024, the Board of Supervisors approved Contract #77-651 with Caremax RM Corporation (dba Caremax Pharmacy), in an amount of $600,000 for the provision of DME and related services for CCHP members and County recipients for the period February 1, 2024 through January 31, 2026.
On October 7, 2025, the Board of Supervisors approved Contract Amendment #77-651-1 with Caremax RM Corporation (dba Caremax Pharmacy), 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 #77-651-2 will allow the Contractor to continue to provide DME and related services for CCHP members and County recipients through January 31, 2028. This Contract was delayed due to the division not receiving the required Contract forms timely for Contract processing.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, certain DME services for CCHP will not be provided and state mandates will not be reached causing a delay in services to CCHP members.