COUNTY OF SAN MATEO
Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

August 30, 2002

BOARD MEETING DATE:

September 10, 2002

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer, Hospital and Clinics

SUBJECT:

Agreements with Catholic Health Care West - West Bay and Seton Medical Center

Recommendation

Adopt a resolution authorizing the President of the Board to execute agreements with
Catholic Health Care West - West Bay (Sequoia) and Seton Medical Center.

Background

San Mateo County is responsible for providing medical care to its medically indigent adult population. San Mateo County Health Center (SMCHC) is a general acute care hospital and does not provide certain highly specialized services. SMCHC currently contracts with three health care systems: Mills-Peninsula Hospitals (Sutter Hospitals) and Catholic Health Care West - West Bay (Sequoia Hospital), and Seton Medical Center to ensure that these specialty services are readily available as well as to maintain adequate coverage.

Discussion

Services provided under this agreement are for services that require technical capabilities that are not presently provided at San Mateo County Health Center. Most services are in the areas of Magnetic Resonance Imaging (MRI), radiation therapy, noninvasive procedures, cardiac specialty services, sleep lab and medical/surgical acute care.

Rates were negotiated with an increase of 4.5% over contracted rates in the previous agreement. In addition, Sequoia Hospital and Seton Hospital outpatient rates are tied to the Medicare Fee Schedule. All patients referred to Sequoia or Seton Hospital for tertiary service undergo utilization review to minimize hospital stays and maintain control over costs.

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 specialty services as well as maintaining adequate coverage to county patients.

Fiscal Impact

The term of the agreement with Catholic Health Care West - West Bay (Sequoia) is two years, January 1, 2002 to December 31, 2003. The term of the agreement with Seton Medical Center is one year, January 1, 2002 to December 31, 2002.

Delay in processing these agreements is due to the reorganization that occurred within Catholic Health Care West - West Bay which originally included Sequoia and Seton Hospitals. In early 2002, Seton Hospital separated from CHW and became part of the Daughters of Charity Health System. This reorganization further delayed the processing of these agreements.

The maximum amount the county shall pay on referrals to CHW and Seton shall not exceed $600,000 per year. Should the county and CHW not agree to rates for the second year of the contract, the county may terminate the agreement upon providing 30 days written notice. Funds are included in FY 2002-2003 Hospital and Clinics budget and will be included in subsequent budget requests.