COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

November 22, 2002

BOARD MEETING DATE:

December 17, 2002

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer

SUBJECT:

Agreement with Kaiser Foundation Hospitals and the Permanente Medical Group, Inc.

Recommendation

Adopt a resolution authorizing the President of the Board to execute an agreement with Kaiser Foundation Hospital and the Permanente Medical Group, Inc.

Background

Since November 1994, Kaiser Foundation Hospitals and the Permanent Medical Group, Inc., has contracted with the county to provide services to Kaiser clients referred to San Mateo Medical Center's (SMMC) Psychiatric Emergency Services (PES) 23-hour crisis stabilization unit.

Discussion

Kaiser clients are referred by Kaiser mental health professionals to PES from various Kaiser facilities located in San Mateo and Santa Clara Counties. The mental health professionals at SMMC monitor patients' progress to achieve timely discharge. Under the arrangement, Kaiser also provides the PES Department with a 24-hour "800" phone number for consultation and inpatient psychiatric hospitalization authorization. Kaiser is responsible for reimbursing the county for psychiatric emergency care of Kaiser-referred members, and pays the county a per diem rate for all Kaiser members presenting at PES.

Using an analysis of the patient days, charges and reimbursement from the last fiscal year, SMMC Administration negotiated the following increases in rates:

Previous New % Change
Agreement Agreement from Current
Inpatient Psychiatric $609 $870 43%
Inpatient Medical/Surgical $750 $1,100 47%
Intensive Care Services $1,619 $1,750 8%
Psychiatric Emergency
Services (23-hour crisis) $409 $450 10%

County Counsel and Risk Management have approved the terms of this agreement.

Vision Alignment

This agreement keeps the county's commitment to ensure basic health and safety for all, and goal number 8, help vulnerable people achieve a better quality of life. This agreement contributes to this commitment and goal by providing Psychiatric Emergency Services to Kaiser clients referred to San Mateo Medical Center.

Fiscal Impact

The term of the agreement is two years from November 1, 2002 through October 31, 2004. Either party may terminate this agreement without cause with at least ninety (90) days prior written notice. This contract resulted in revenue of $182,376 for FY 01-02, given the same number of patient days, the increased charges are expected to generate an additional $37,000 in revenue each year.