COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

September 16, 2003

BOARD MEETING DATE:

October 7, 2003

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer

SUBJECT:

Contract with Alliance Imaging, Inc.

Recommendation

Approve a resolution authorizing the President of the Board to execute an agreement with Alliance Imaging for Mobile MRI Services for the San Mateo Medical Center.

Background

MRI Scans are one of five of San Mateo Medical Center's most costly and highest volume outsourced services. By having Mobile MRI Services on-site, SMMC would reduce overall costs of providing the service (including labor and equipment), enhance patient care by providing increased access, improve physician satisfaction and generate new revenue. The proposal is to provide on site services three days per week by contracting for a 3-year term with a mobile MRI service leasing company. Included in the fee per scan is the cost of providing an MRI tech at a fair market value/competitive rate.

Discussion

Alliance Imaging would provide on-site Mobile MRI services (including equipment and technician) on a fee per scan basis, 3 days per week for a 3- year term. Having on-site services would improve the quality of and access to health care, reduce costs, generate new revenue, and improve physician satisfaction.

As MRI volume continues to grow and in pursuit of SMMC's vision "To be recognized as the best public health hospital and clinic system noted for: Effective Use of Technology Timely Access to Care, Financial Strength...resulting in improved health for the community."

A Request for Proposal was sent to three of the top providers of service in the industry. Of the three companies, Alliance was the most cost effective, could provide staffing, and was flexible with scheduling based on volume.

County Counsel and Risk Management have reviewed and approved this agreement as to format and content.

Vision Alignment

This Contract keeps the commitment to Responsive, effective and collaborative government and goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. This contract will aid San Mateo Medical Center in addressing the need to provide timely access to essential services while concurrently reducing the expense and enhancing revenue by providing imaging services. Additionally, this contract keeps the commitment of Ensuring basic health and safety for all and goal number 5: Residents have access to healthcare and preventive care. As the Medical Center volume continues to grow, with the proposed increase in clinic volume, the approval of the Geriatric Assessment Center, and increasing volume in the ED, MRI services are a critical component of the effective diagnosis and treatment of San Mateo Medical Center patients. Cost effective management of MRI services allows for increased access and less invasive healthcare.

Fiscal Impact

The term of the agreement is from October 1, 2003 to September 30, 2006. Annual amounts for years two and three will be adjusted based on the MRI volume, but will not exceed $1,700,000 for the entire term of the agreement.

Exhibit A

1.

General Description of RFP

Mobile MRI Services

2.

List key evaluation criteria

Quality of services provided

Cost of services

Alignment of Management Company Goals with SMMC and County Goals

3.

Where advertised

A letter requesting a proposal was sent to three MRI lease companies, only two of the three could provide the service.

4.

In addition to any advertisement, list others to whom RFP was sent

None

5.

Total number sent to prospective proposers

Three

6.

Number of proposals received

Two

7.

Who evaluated the proposals

The Deputy Director of Ancillary Services and the Director of Imaging.

8.

In alphabetical order, names of proposers (or finalists, if applicable) and location

Alliance Imaging, CA

GE Imaging, CA

California Advanced Imaging, CA