Agenda

Return

C. 64

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	May 24, 2022

Contra

Costa

County

Subject:

Amendment Agreement #26-583-32 with Specialty Laboratories, Inc. (dba Quest Diagnostics Nichols Institute)

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/24/2022

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
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Jaspreet Benepal, 925-370-5100
cc:	K Cyr M Wilhelm

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: May 24, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment Agreement #26-583-32 with Specialty Laboratories, Inc. (dba Quest Diagnostic Nichols Institute), a corporation, effective April 15, 2022, to amend Contract #26-583-30, as amended by Amendment Agreement #26-583-31, to modify the contract language to include additional third-party billing services with no change in the payment limit of $7,000,000 or term of January 1, 2021 through December 31, 2022.

FISCAL IMPACT:

This amendment will not impact the original payment limit of $7,000,000 and is funded by 71% Hospital Enterprise Fund I and 29% Federal Coronavirus Aid, Relief and Economic Security (Cares) Act. (New rates added)

BACKGROUND:

Specialty Laboratories, Inc. (dba Quest Diagnostics Nichols Institute) provides outside clinical laboratories testing for tests that are rarely requested and require special equipment which CCRMC does not have on-site. This contract also includes COVID-19 testing which helps to serve as a back-up, if needed. The contractor has been providing outside clinical laboratory testing for CCRMC since January 2007.

On January 19, 2021, the Board of Supervisors approved Contract #26-583-30 with Specialty Laboratories, Inc. (dba Quest Diagnostic Nichols Institute), in an amount not to exceed $7,000,000 for the provision of outside clinical laboratory services, with no change in the payment limit or term for the period January 1, 2021 through December 31, 2022.

On January 18, 2022, the Board of Supervisors approved Contract Amendment Agreement #26-583-31 with Specialty Laboratories, Inc. (dba Quest Diagnostic Nichols Institute), to include additional outside clinical laboratory services, with no change in the payment limit or term January 1, 2021 through December 31, 2022.

Approval of Contract Amendment Agreement #26-583-32 will allow the contractor to include additional third-party billing services effective April 15, 2022 through December 31, 2022. The County agrees to hold the contractor harmless in the event of any action related to any claims submitted by contractor to third-party payor. This request for amendment authorization is delayed due to the Division's late contract amendment request submission.

CONSEQUENCE OF NEGATIVE ACTION:

If this amendment is not approved, contractor will not provide additional third-party billing services.