To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-826 with Medicare Drop LLC
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #77-826 with Medicare Drop LLC, a limited liability company, in an amount not to exceed $300,000, to provide durable medical equipment (DME) and related services to Contra Costa Health Plan (CCHP) members and County recipients, for the period September 1, 2026 through August 31, 2028.
FISCAL IMPACT:
Approval this Contract will result in contractual service expenditures of up to $300,000 for a two-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized DME services, including but not limited to, mobility and homecare medical equipment to CCHP members under the terms of their Individual and Group Health Plan membership Contracts with the County. DME services are mandated by State and Federal regulations and related equipment is medically necessary to preserve bodily functions essential to activities of daily living or to prevent significant physical disability. This is a new Contractor who will be part of the CCHP Provider Network providing these services and fostering a deep understanding of the CCHP organizations, mission, values, and long-term objectives starting September 1, 2026.
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, 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 600.4, the Department has posted a continuous Request for Qualifications and maintains a current qualified list of vendors at all times.
Approval of new Contract 77-826 will allow the Contractor to provide DME and related services to CCHP members and County recipients through August 31, 2028.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, certain specialized DME services for CCHP members under the terms of their Individual and Group Health Plan membership Contract with the County will not be provided and may cause a delay in services to CCHP members.