To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment Agreement #23-864-2 with Health Management Associates, Inc.
Recommendation: Recommendation of the County Administrator
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RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment #23-864-2 with Health Management Associates, Inc. (HMA), a corporation, effective November 1, 2026, to amend Contract #23-864 (as amended by #23-864-1), to increase the payment limit by $5,747,147, from $5,971,000 to a new payment limit of $11,718,147 to include the services previously provided under Contract #23-864 and allow both Medi-Cal and Medicaid actuarial services for the Contra Costa Health Plan (CCHP) under a single contract, with no change to the original term of January 1, 2025 to June 30, 2029.
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional expenditures of up to $5,747,147, funded 100% by CCHP Enterprise Fund II.
BACKGROUND:
On November 5, 2024, the Board of Supervisors approved Contract #23-864 (as amended by Amendment/Extension Agreement #23-864-1) with HMA in an amount not to exceed $5,971,000 to provide currently provide actuarial and analytic services to CCHP, for the period January 1, 2025 thought June 30, 2029.
HMA also provided actuarial consulting services under a separate agreement, Contract #23-773, originally approved on August 15, 2023, to support CCHP’s Medi-Cal actuarial functions, including IBNR reserve calculations, annual Rate Development Template (RDT) submissions, and State premium rate file analysis. Over its term, Contract #23-773 underwent several amendments that increased the payment limit to $3,820,000 and extended the contract through September 30, 2026, at which point the contract expired.
Because the scope of actuarial services under Contract #23-773 has become fully aligned with the services provided under Contract #23-864, and...
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