COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health Services Agency

DATE:

December 4, 2003

BOARD MEETING DATE:

December 16, 2003

TO:

Honorable Board of Supervisors

FROM:

Margaret Taylor, Director of Health Services

SUBJECT:

Amendment to the Agreement with Quest Diagnostics Clinical Laboratories, Inc.

Recommendation

Adopt a resolution authorizing the President of the Board of Supervisors to execute an Amendment to the Agreement with Quest Diagnostics Clinical Laboratories, Inc.

Background

On January 28, 2003, your Board executed an agreement with Quest Diagnostics Clinical Laboratories, Inc. to provide laboratory services to San Mateo County Mental Health and Correctional Health clients. Quest provides specimen collection materials, specimen transport services, laboratory analysis of specimens, and faxed laboratory results to Mental Health clinics and Correctional Health facilities. The term of the agreement term is July 1, 2002 through June 30, 2003 for Correctional Health Services and July 1, 2002 until June 30, 2005 for Mental Health Service. The maximum amount of the agreement is $475,000.

Discussion

Correctional Health Service's portion of the original agreement was only for a one-year term, allowing Correctional Health and the San Mateo Medical Center (SMMC) to reevaluate the possibility of having laboratory analysis for Correctional Health Services conducted at the San Mateo Medical Center. We are currently drafting a plan with the SMMC to provide these services for Correctional Health. This amendment ensures continuation of services until SMMC is able to process Correctional Health's laboratory analyses.

Amendment No. 1 extends the term of the Correctional Health Services portion of the agreement through June 30, 2005 to coincide with the Mental Health term and increases the Correctional Health Services amount by $80,000 to cover services through this term. When the transfer of services to the San Mateo Medical Center is complete, the Correctional Health portion of the contract will not be used. There will be no additional cost to the County after that time because charges are only incurred when lab specimens are submitted.

Vision Alignment

This agreement with Quest Diagnostics, Inc. keeps the commitment to Ensure Basic Health and Safety for All and goal number 8: Help vulnerable people - the aged, disabled, mentally ill, at-risk youth, and others - achieve a better life. This agreement contributes to this commitment and goal by providing clinical laboratory services to clients of Mental Health Services and clients of Correctional Health Services.

Fiscal Impact

This amendment does not change the term of the overall agreement; it remains from July 1, 2002 through June 30, 2005. It extends the Correctional Health portion of the agreement from June 30, 2003 to June 30, 2005. The Correctional Health portion of the Agreement is increased by $80,000 from $40,000 to $120,000. Therefore the total amount of the agreement is increased from $475,000 to $555,000; $435,000 for Mental Health Services and $120,000 for Correctional Health Services. $145,000 is included in the Mental Health Services budget for FY 2003-04. Of that amount, federal and state Medi-Cal will reimburse 85% or $123,250. The remaining 15%, or $21,750, is the Mental Health net County cost. $40,000 is included in the Correctional Health Services FY 2003-04 budget.