COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Hospital and Clinics

 

DATE:

July 22, 2002

   

BOARD MEETING DATE:

August 6, 2002

   
 

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer

 

SUBJECT:

Amendment to the Agreement with Gambro Healthcare

 

Recommendation

Adopt a resolution authorizing the President of the Board to execute an amendment to the agreement with Gambro Healthcare to provide acute dialysis for patients at San Mateo County General Hospital.

 

Background

San Mateo County is responsible for providing medical care to its medically indigent adult (MIA) population. This care includes acute inpatient dialysis treatment at San Mateo County General Hospital (SMCGH). Because of necessary equipment and specialized staffing, it is more economical to contract out for this service.

 

Discussion

In May 2001, the Department of Hospital and Clinics issued a Request for Proposals for the provision of acute inpatient dialysis treatment. A Request for Proposals was mailed to four providers of renal care: Mills-Peninsula, Fresenius, Satellite Dialysis Center, Inc. and Gambro Healthcare. Gambro Healthcare was the only vendor who submitted a proposal.

On July 24, 2001 your Board approved an agreement with Gambro Healthcare. The term of the agreement is July 1, 2001 to June 30, 2003 with a maximum amount of $250,000.

In May 2002, Gambro Healthcare notified Hospital and Clinics that Gambro Healthcare has changed name to Gambro Healthcare Renal Care, Inc., A Nevada Corporation.

Gambro Healthcare has been providing SMCGH with high quality renal care since 1999. They maintain compliance with regulatory standards. Gambro Healthcare provides acute dialysis on an all-inclusive basis (equipment, supplies, appropriate personnel and inservice training) upon written order by a member of SMCGH's medical staff. Gambro Healthcare has adequate capacity for staffing; information systems in place; evidence of program competency, creativity and initiative; low cost and other key factors required for quality renal care services.

Inpatient dialysis is used to support acutely ill patients who are already receiving outpatient dialysis when their illness occurs, and patients who experience kidney failure who need short term dialysis for recovery or need to be placed on long term dialysis due to acute illness that becomes chronic. A portion of these patients are waiting for kidney transplantation. Dialysis treatments occur two to four times weekly and take approximately three to four hours to complete. It is difficult to predict how many patients will require inpatient dialysis in a year.

The increase in this contract is due to two factors: 1) an increase in the number of patients requiring inpatient dialysis and 2) one patient required inpatient dialysis for a number of months because no outpatient dialysis center would accept him due to behavioral problems. An outpatient dialysis center was finally persuaded to accept him, but this may be problematic in the future.

San Mateo County Health Center currently is averaging approximately $20,000 per month in dialysis charges. There were no fee increases by the company during the last contract negotiations.

This amendment has been reviewed and approved by Risk Management and County Counsel.

 

Vision Alignment

This agreement keeps the commitment to Ensure Basic Health and Safety for All and goal number 5: Provide residents access to healthcare and preventive care. The Agreement contributes to this commitment and goal by providing renal care services to county patients.

 

Fiscal Impact

The term of the agreement remains the same from July 1, 2001 through June 30, 2003. This amendment increases the maximum amount of the agreement by $250,000, from $250,000 to $500,000. Funds will be included in the Hospital and Clinics FY2002-03 Adopted budget.