To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment to 340B Holdings, LLC for Services Rendered
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $33,600 to 340B Holdings, LLC for Sun Rx split billing subscription services for the period from August 1, 2023, through July 31, 2024, as recommended by the Heath Services Director.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure in an amount not to exceed $33,600 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
SunRx split billing software verifies the accuracy of the price paid for each drug purchased and can audit our patient accounts against a database file developed exclusively by SunRx. This software application will incorporate split definition that will search previous invoices to see if items in the order have been previously purchased. It will inform all affected customers of HRSA’s changes and will adapt to all new regulations.
CCRMC sent a cancellation request to SunRx so that the split billing subscription will not renew after July 31, 2024. The County is moving forward with a new offering and this software is no longer required.
The vendor 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 vendor has been asked to provide services without a valid purchase order, and the vendor does so to the benefit of the county, the vendor is entitled to recover the reasonable value of those services. The vendor has provided services at the request of the county after the original purchase order payment limit had been reached. The Department cannot pay the vendor for services rendered that exceed the purchase order limit. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $33,600 payable to 340B Holdings, LLC.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, the final invoice for split billing subscription through SunRx will be at risk of falling into past due status with the vendor.