To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #77-320-3 with Positive and Vigilant Healthcare, Inc. (dba Alhambra Convalescent Hospital)
☒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 #77-320-3 with Positive and Vigilant Healthcare, Inc. (dba Alhambra Convalescent Hospital), a corporation, in an amount not to exceed $6,000,000, to provide skilled nursing facility (SNF) services for Contra Costa Health Plan (CCHP) members and county recipients for the period April 1, 2024 through March 31, 2027.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $6,000,000 over a three-year period and will be funded 100% by CCHP Enterprise Fund II revenues. (Rate increase)
BACKGROUND:
CCHP has an obligation to provide certain specialized SNF health care services for its members under the terms of their Individual and Group Health Plan membership contracts with the county. Members are released from the hospital to recover at an SNF until they are well enough to be sent home. These services include but are not limited to: twenty-four (24) hour medical care, social service and case management coordination, wound care, respiratory therapy, nasogastric and gastric tube feeding, physical and speech therapy services. 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 contractor has been a part of the CCHP Provider Network providing SNF services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since April 1, 2021.
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. The nature of the SNF services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. This new 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. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
In April 2021, the County Administrator approved and the Purchasing Services Manger executed Contract #77-320 with Positive and Vigilant Healthcare, Inc. (dba Alhambra Convalescent Hospital), in the amount not to exceed $150,000, for the provision of SNF services for CCHP members and country recipients for the period April 1, 2021 through March 31, 2024.
On February 28, 2023, the Board of Supervisors approved County Contract Amendment Agreement #77-320-2 with Positive and Vigilant Healthcare, Inc. (dba Alhambra Convalescent Hospital), effective February 1, 2023, to amend Contract #77-320, to increase the payment limit by $475,000, to a new contract payment limit of $625,000, for the provision of additional SNF services for CCHP members and county recipients, with no change in the term of April 1, 2021 March 31, 2024.
Approval of Contract #77-320-3 will allow the contractor to continue providing SNF services to CCHP members and county recipients through March 31, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved certain specialized skilled nursing facility health care 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.