To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-817 with NorCal Orthopedic Surgery Center LLC
☒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 #77-817 with NorCal Orthopedic Surgery Center LLC, a limited liability company, in an amount not to exceed $900,000, to provide ambulatory orthopedic surgery center services to Contra Costa Health Plan (CCHP) members and County recipients, for the period May 1, 2026 to April 30, 2029.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $900,000 over a three-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized health care services, including ambulatory orthopedic surgery center services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. This Contractor is new to the CCHP Provider Network and will provide ambulatory orthopedic surgery center services while fostering a deep understanding of the CCHP organization’s mission, values and long-term objectives beginning May 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. This contractor will cooperate with 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 600.3 CCHP Physician services are exempt from solicitation requirements.
Approval of new Contract #77-817 will allow the Contractor to provide ambulatory orthopedic surgery center services for CCHP members and County recipients through April 30, 2029.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, certain ambulatory orthopedic surgery center 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 service to CCHP members.