To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-308-3 with Shield-California Health Care Center, Inc.
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #77-308-3 with Shield-California Health Care Center, Inc., a corporation, in an amount not to exceed $10,000,000, to provide Durable Medical Equipment (DME) services and enteral nutritional supplies for Contra Costa Health Plan (CCHP) members, for the period November 1, 2026 through October 31, 2028.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $10,000,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP is obligated to furnish a comprehensive range of healthcare services to its members as outlined in their Individual and Group Health Plan contracts with the County. As part of the CCHP Provider Network, this Contractor has delivered these services since May 2017, developing a strong understanding of CCHP’s mission, values, and long‑term objectives.
CCHP must also maintain network adequacy in accordance with applicable state and federal requirements, ensuring members have timely access to clinically appropriate services. The Contractor supports CCHP in meeting these obligations by providing specialized offerings that are limited within the local market, thereby helping CCHP uphold access‑to‑care standards and avoid delays in service delivery.
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. 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. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. 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.
On August 8, 2023, the Board of Supervisors approved Contract #77-308-1 with Shield-California Health Care Center, Inc., in an amount not to exceed $7,500,000, for the provision of DME services and enteral nutritional supplies for CCHP members and County recipients for the period November 1, 2023 through October 31, 2026.
On October 7, 2025, the Board of Supervisors approved Contract Amendment #77-308-2 with Shield-California Health Care Center, Inc., to include the Dual Eligible Special Needs Plan (D-SNP) authorizing the Contractor to provide specialized care to beneficiaries who are dually 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 #77-308-3 will allow the Contractor to continue to provide DME services and enteral nutritional supplies for CCHP members through October 31, 2028.
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.