COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

August 15, 2003

BOARD MEETING DATE:

September 9, 2003

TO:

Honorable Board of Supervisors

FROM:

Nancy Steiger, Chief Executive Officer

SUBJECT:

Amendment to the Agreement with Stanford Health Services (now Stanford Hospital and Clinics)

Recommendation

Adopt a resolution authorizing the President of the Board to execute an amendment to the agreement with Stanford Health Services (now Stanford Hospital and Clinics).

Background

Stanford Health Services had a contract to provide physician services at the San Mateo Medical Center Willow Clinic that expired in March 2002. Stanford has continued to provide these services, now as Stanford Hospital and Clinics. This amendment extends the term of Stanford's contract through June 30, 2003.

Discussion

In an effort to provide uninterrupted patient care while the terms of a new contract were being negotiated, Stanford continued to provide physician services at the Willow Clinic for the 16-month period of March 3, 2002 through June 30, 2003. Because of the complexities in negotiating new physician compensation packages, including increases in malpractice insurance and the decision on what type of services would continue to be provided at the Willow Clinic, new terms were not agreed upon until Spring of 2003. Once the new contract terms were agreed to, Stanford and the San Mateo Medical Center engaged in an extended verification process period to reach a complete and comprehensive outstanding reimbursement balance.

San Mateo Medical Center was unable to reimburse Stanford Hospital and Clinics for salary and expenses incurred during this period due to lack of a signed contract. This amendment extends the contract expiration date to June 30, 2003 to enable Stanford Hospital and Clinics to be paid for services rendered between March 2, 2002 and June 30, 2003.

Vision Alignment

This Resolution keeps the commitment to Ensure Basic Health and Safety for All and goal number 5: Provide residents access to healthcare and preventive care. This resolution contributes to this commitment and goal by continuing to provide medical services to county patients.

Fiscal Impact

Funds for the cost of this contract amendment shall not exceed $830,00. The majority of the funds have been accrued in the San Mateo Medical Center's FY 2002-03 Adopted Budget, and the remaining portion has been included in the FY 2003-04 Adopted Budget.