To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Amendment/Extension #23-861-2 with Alvarez & Marsal Healthcare Industry Group, LLC
?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 Amendment/Extension #23-861-2 with Alvarez & Marsal Healthcare Industry Group, LLC, a limited liability company, to amend Contract #23-861 (as amended by Contract Extension #23-861-1), effective January 1, 2026, to increase the payment limit by $1,918,136, from $6,139,200 to a new amount not to exceed $8,057,336 and extend the termination date from January 31, 2026 to June 30, 2026 to continue providing interim Chief Financial Officer (CFO) services, including management of all day-to-day financial operations of the Contra Costa Health Services (CCHS).
FISCAL IMPACT:
Approval of this Contract Amendment/Extension will result in an additional amount not to exceed $1,918,136 funded 100% by Hospital Enterprise Fund I. (Rate increase)
BACKGROUND:
At the end of 2024 the CCHS CFO/Chief Operating Officer (COO) retired. Despite a national executive search conducted by a leading healthcare executive recruiting firm, CCHS efforts to hire a new CFO were unsuccessful. This challenge may stem from two primary factors, 1) the compensation package may be insufficient to attract an experienced executive capable of managing a complex health system that includes both a hospital and a health plan; 2) the current structure of responsibilities under the CFO, also operating as the COO, does not align with industry norms, making it difficult to find a successor with credentials to meet the needs of the County.
As such, findings from an A&M organizational assessment recommended uncoupling the CFO/COO roles and bringing in an interim CFO along with a team of executive finance personnel resources to manage daily fin...
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