To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #77-676 with CHME, Inc. (dba California Home Medical Equipment)
☒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 #77-676 with CHME, Inc. (dba California Home Medical Equipment), a corporation, in an amount not to exceed $400,000, to provide Durable Medical Equipment (DME) services for Contra Costa Health Plan (CCHP) members and County recipients, for the period August 1, 2024 through July 31, 2026.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $400,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
CCHP has an obligation to provide certain DME and related services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. 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 and participate 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.
The nature of the DME services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. There is a total of 54 providers in CCHP’s service area. CCHP is currently contracted with 41. This Contract will maintain 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.
Approval of Contract #77-676 will allow the contractor to provide DME services for CCHP members and County recipients through July 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, certain DME 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 services to CCHP members.