Agenda

Return

C. 60

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	August 1, 2023

Contra

Costa

County

Subject:

Cancelation Agreement #77-438-1 and Contract #77-438-2 with Sonoma Specialty Hospital, LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/01/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Sharron Mackey, 925-313-6104
cc:	K Cyr A Forsythe

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 1, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County, as follows: (1) Cancelation Agreement #77-438-1 with Sonoma Specialty Hospital, LLC, a limited liability company, effective at the end of business on August 1, 2023; and (2) Contract #77-438-2 with Sonoma Specialty Hospital, LLC, a limited liability company, in an amount not to exceed $3,000,000 to provide long term acute care (LTAC) services for CCHP members for the period August 2, 2023 through July 31, 2025.

FISCAL IMPACT:

Approval of this contract will result in contractual service expenditures of up to $3,000,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund II. (Rate Increase)

BACKGROUND:

CCHP has an obligation to provide certain specialized long term acute care services for its members under the terms of their Individual and Group Health Plan membership contracts with the county. Contractor will provide long term acute care services including, but not limited to nursing, respiratory and nutritional therapies, pain management, case management, social services, and end of life care. Contractor has been a member of the CCHP Provider Network since April 1, 2022.

On April 12, 2022, the Board of Supervisors approved Contract #77-438 with Sonoma Specialty Hospital, LLC, in the amount of $2,000,000 for the provision of long-term acute care services for CCHP members for the period of April 1, 2022 through March 31, 2024.

In consideration of contractor’s agreement to continue providing services, both parties have agreed to re-negotiate the contract payment provisions and the term to reflect the intent of the parties. Therefore, in accordance with General Conditions Paragraph 5 (Termination), of the contract, the department and contractor have agreed to a mutual cancelation of this contract. Approval of Cancellation Agreement #77-438-1 will accomplish this termination.

Under Contract #77-438-2, this contractor will continue to provide LTAC services to CCHP members with a new contract term of August 2, 2023 through July 31, 2025.

CONSEQUENCE OF NEGATIVE ACTION:

If the cancellation is not approved contractor will not be compensated as agreed for continued LTAC services. If the new contract is not approved, LTAC services for CCHP members may not be provided by this contractor, which may increase wait times for CCHP members.