To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #77-650 with Guardant Health, Inc.
☒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 #77-650 with Guardant Health, Inc., a corporation, in an amount not to exceed $300,000, to provide clinical laboratory testing services for Contra Costa Health Plan (CCHP) members and county recipients, for the period February 1, 2024 through January 31, 2026.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $300,000 over a two-year period and will be funded 100% CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain specialized outside clinical laboratory testing services for its members under the terms of their Individual and Group Health Plan membership contracts with the county. This contractor’s proven track record and established reputation within the medical community mitigates potential risks associated with CCHP’s success and patient well-being. 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 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. This is a new contractor who will be part of the CCHP Provider Network providing clinical laboratory testing services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives starting February 1, 2024.
The nature of these clinical laboratory services needed is complex and requires seamless coordination, integration, and collaboration with existing programs, systems, and personnel. Guardant Health is familiar with CCHP’s specific requirements to help ensure a smoother implementation and delivery process. There are a total of 14 providers for clinical laboratory services agencies in CCHP ‘s service area. CCHP is currently contracted with 10 clinical laboratories agencies. This new contract will enhance comprehensive area coverage for the entire CCHP membership and meet the Knox-Keene Act, time and distance mandate required by the State of California Department of Managed Health Care (DMHC) Services. This contractor has been approved by the Public Works Department’s Purchasing Division on November 29, 2023.
Under new Contract #77-650 allows the contractor to provide clinical laboratory testing services through January 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, certain specialized outside laboratory testing health care services for CCHP members will not be provided and may cause a delay in services for CCHP members.