Agenda

Return

C.102

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	June 7, 2022

Contra

Costa

County

Subject:

Payment for Subscription Service Provided by 340B Holdings, LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/07/2022

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:

Patrick Wilson, (925) 335-8700

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: June 7, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Auditor-Controller or designee, to pay $33,600 to 340B Holdings, LLC for annual split billing subscription for the period of August 1, 2021 through July 31, 2022.

FISCAL IMPACT:

Approval of this action will result in a one-time expenditures of up to $33,600 in FY 2021-22, and is included in the Hospital Enterprise Fund I budget.

BACKGROUND:

Contra Costa Health - Inpatient Pharmacy have used 340B Holdings, LLC (formerly EAudit Health Solutions LLC) since 2005 and it has proved to be innovative software that saves money for Health Services. 340B Holdings, LLC split billing and audit software verifies the accuracy of the price paid for each drug purchased and can audit our 340B accounts against a special contract file developed exclusively by 340B Holdings, LLC. 340B Holdings, LLC provides a subscription-based online software program designed to help 340B eligible entities expand their use of the 340B contract portfolio across their entire health care system.

BACKGROUND: (CONT'D)

Health Services IT entered a contract request for EAudit Health Solutions LLC DBA SunRx prior to becoming 340B Holdings, LLC. The company has refused to sign the County Business Associate Agreement (BAA) preventing HSD Contracts and Grants from completing the contracts process.

Due to the aforementioned delay the vendor was not paid for services provided in good faith. Therefore, Contra Costa Health - Inpatient Pharmacy has determined that 340B Holdings, LLC is entitled to payment for the value of the services provided under the equitable relief theory of quantum meruit. The theory provides that where a vendor has been asked to provide services without a valid agreement, and the vendor does so to benefit the recipient, the vendor is entitled to recover the reasonable value of those services.

CONSEQUENCE OF NEGATIVE ACTION:

If this request is not approved, 340B Holdings, LLC will not be paid for services rendered in good faith. It will also increase the risk of our billing system being shut down, placing the County at risk of failing 340B Federal Drug Discount Program Requirements Audit and receiving fines.