Agenda Item AGENDA STAFF REPORT ASR Control 22-000943
MEETING DATE:	05/09/23
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2, 3
SUBMITTING Agency/Department:	Health Care Agency (Approved)
Department contact person(s):	Joanne Lim (714) 834-5518
	Erin Winger (714) 647-4510

Subject: Contract for Physician Services for Correctional Health Services Programs

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: FY 2023-24 $3,151,419
FY 2024-25 $3,151,419
FY 2025-26 $3,151,419

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: GF: 80%, State: 20% (Realignment)	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 4/13/2021 #23, 5/5/2020 #9, 5/22/2018 #24

RECOMMENDED ACTION(S):

Approve selection of and Contract with Correctional Managed Care, Medical Corporation for provision of Physician Services for Correctional Health Services Programs, for the term of July 1, 2023, through June 30, 2026, for an amount not to exceed $9,454,257, renewable for one additional two-year term.

Pursuant to Contract Policy Manual Section 3.4-114, authorize the County Procurement Officer or Deputized designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the Contract amount for the first year of the Contract, for the entire term of the Contract, including renewals, and within the scope of work set forth in the Contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

Authorize the County Procurement Officer or Deputized designee to execute Contract with Correctional Managed Care, Medical Corporation, as referenced in the Recommended Actions above.

SUMMARY:

Approval of the selection and Contract with Correctional Managed Care, Medical Corporation for provision of Physician Services for Correctional Health Services Programs will provide specialty medical care to persons in the County of Orange's custody.

BACKGROUND INFORMATION:

On May 22, 2018, your Honorable Board of Supervisors (Board) approved the current Contract with Correctional Managed Care, Medical Corporation (CMCMC) for provision of Physician Services for Correctional Health Services (CHS) Programs. The current contract with CMCMC expires June 30, 2023. The below additional actions were executed pursuant to appropriate authorities.

Board Date	Contract/Amendment	Action	Term
May 22, 2018	Contract	Board Approved Agreement	July 1, 2018 – June 30, 2020
May 5, 2020	Amendment No. 1	Board Approved Term Renewal	July 1, 2020 – June 30, 2021
April 13, 2021	Amendment No. 2	Board Approved Term Renewal	July 1, 2021 – June 30, 2023

On October 20, 2022, the Health Care Agency (HCA) released a Request for Proposals (RFP) in the County’s online bidding system to solicit proposals from qualified providers to provide Physician Services for CHS Programs. The RFP included the County’s intent to award one contract to the qualified proponent whose proposal was determined to be the most responsive to the requirements of the RFP. HCA received one proposal by the deadline of November 14, 2022. HCA utilized all applicable National Institute of Government Purchasing coding and reached out to the medical community to ensure awareness of this solicitation. HCA received a responsive proposal from CMCMC. As only one proposal was received, an evaluation panel was not required. Program staff reviewed and deemed the proposal submitted by CMCMC to be responsive and qualified based on their experience and services to be provided. The Orange County Preference Policy is not applicable to this Contract.

HCA staff have conducted due diligence on CMCMC. Reference checks were satisfactory and completed with Jamie Yoo, former CEO of Anaheim Global Medical Center, CEP America – California, and KPC Health – Anaheim Global Medical Center.

Scope of Services

The County of Orange is mandated to provide health care to persons in the County's custody pursuant to State of California Penal Code Sections 4011 and 4015 and Government Code Section 29602. CHS is the designated provider of health care to persons in custody on behalf of the Orange County Sheriff’s Department for adults and on behalf of the Probation Department for juveniles. This Contract provides inpatient and outpatient specialty physician services, including onsite and offsite clinics with specialty providers, as well as Emergency Department services, for custody patients. These services compliment in-custody primary health care by ensuring access to specialty physicians providing secondary and tertiary care in the outpatient and hospital setting.

Performance Outcomes

During Calendar Year 2022, CMCMC provided over 2,411 clinic encounters for over 26 specialties such as cardiology, surgery, orthopedics and oncology, in addition to providing in-hospital care to more than 329 inmates hospitalized at the County-contracted facility located at Anaheim Global Medical Center, Inc.

HCA staff has verified there are no concerns that must be addressed with respect to CMCMC's ownership/name, litigation status or conflicts with County interests. CMCMC’s performance has been confirmed as satisfactory with no identified issues.

The proposed Contract with CMCMC includes subcontractors. See Attachment B for information regarding subcontractors and Contract Summary Form.

The proposed Contract with CMCMC contains a mutual indemnification provision, which varies from the County standard of sole indemnification. CEO/Risk Management has approved the indemnification provisions and determined the risk to be acceptable for these services. See Attachment F for Risk Assessment Form.

HCA requests the Board approve the Contract with CMCMC for provision of Physician Services for Correctional Health Services Programs, as referenced in the Recommended Actions.

FINANCIAL IMPACT:

Appropriations for this Contract will be included in Budget Control 042 FY 2023-24 Budget and will be included in the budgeting process for future years.

Should services need to be reduced or terminated due to lack of funding, this proposed Contract contains language that allows HCA to give 30 calendar days' notice to either terminate or renegotiate the level of services to be provided. The notice will allow HCA adequate time to transition or terminate services to clients, if necessary.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Contract MA-042-23011109 for Physician Services for Correctional Health Services Programs with Correctional Managed Care, Medical Corporation
Attachment B - Contract Summary Form
Attachment C - California Government Code Section 29602
Attachment D - California Penal Code Section 4011
Attachment E - California Penal Code Section 4015
Attachment F - Risk Assessment Form