100% Hospital Enterprise Fund I.
Advanced Medical Personnel Services, Inc. provided speech, physical and occupational therapist services at Contra Costa Regional Medical Center and Contra Costa Health Centers (CCRMC) during the period of July 1, 2014 through June 30, 2015. Services were requested and provided beyond the payment limit of the contract. At the end of the contract period, charges of 1,187,908 had been incurred, of which $1,173,000 had been paid pursuant to the contract limits. The additional services were provided in June of 2015. Advanced Medical Personnel Services, Inc. has not been paid for the additional services provided above the contract limits, which amount to $14,908.
Dennis McBride provided primary care physician services at County’s Adult and Juvenile Detention facilities during the period September 1, 2013 through August 31, 2015. However, due to increases in caseload, his services were utilized more than the original projection and beyond the payment limit of the contract. At the end of the contract period, charges of $560,120 had been incurred, of which $550,000 had been paid pursuant to the contract limits. The additional services were provided in August of 2015. Dennis McBride has not been paid for the additional services provided above the contract limits, which amount to $10,120. All of the excess services were rendered before the Department was aware that the contract limits had been reached.
Because the contract limits have been reached for both contractors, the Department cannot pay these providers under the contracts for the additional services they rendered. The providers are nonetheless entitled to payment for the reasonable value of their services under the equitable relief theory of quantum meruit. That theory provides that where a person has been asked to provide services without a valid contract, and the provider does so to the benefit of the recipient, the provider is entitled to recover the reasonable value of those services. Because the Health Services Department requested the additional services and the contractors provided the services in good faith, with the full expectation and understanding that they would receive payment for those services, the contractors have a right to claim the reasonable value of the services they provided above the contract limits. As such, the Department recommends that the Board of Supervisors authorize the Auditor-Controller to issue a one-time payment to each contractor in the amounts listed above. The Department will make every effort to ensure that this situation does not occur in the future. The Health Services Finance Division plans to begin monitoring service provider workloads.
The service providers will not be paid for services rendered to the Health Services Department.