COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

February 27, 2004

BOARD MEETING DATE:

March 16, 2004

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer, San Mateo Medical Center

SUBJECT:

Agreement with Blood Centers of the Pacific

Recommendation

Adopt a resolution authorizing the President of the Board to execute an agreement with Blood Centers of the Pacific.

Background

San Mateo County is responsible for providing necessary medical care to its medically indigent adult (MIA) population. This care includes supplying blood and blood products at San Mateo Medical Center (SMMC).

In December 2003, San Mateo Medical Center issued a Request for Proposals (RFP) for blood and blood services. Criteria were based on services provided, including turnaround, plan for blood shortages, shipping/transportation and emergency blood requests or fee schedules (i.e., hepatitis blood panels) and references. The RFP was sent to three local providers: American Red Cross, Stanford Medical School Blood Center, and the Blood Centers of the Pacific. Stanford Medical School Blood Center and American Red Cross both declined. Blood Centers of the Pacific was the only business to respond.

Discussion

Blood Centers of the Pacific has been providing services to San Mateo County General Hospital since 1989. The maximum amount on the previous agreement with Blood Center of the Pacific was $1,305,836 for four years. In July 2003, Blood Centers of the Pacific increased their rates by 6%. San Mateo Medical Center's need for blood, blood components, and blood derivatives has increased by 18% over the past two years, increasing the monthly average to approximately $48,000. Effective January 1, 2004, Blood Centers of the Pacific has again increased their rates by 5.5%. This increase has raised the monthly average to $50,640. Due to evolving technology, such as Nile Virus testing, FDA requirements for testing are constantly being amended or modified further affecting and increasing SMMC's monthly costs. Blood Centers of the Pacific will only enter into one-year agreements due to these rapidly changing requirements which consequently affect their rates.

County Counsel and Risk Management have reviewed and approved this agreement.

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 blood, blood components, and blood derivatives to county patients at San Mateo Medical Center.

Fiscal Impact

The term of the agreement is one year, January 1, 2004 through December 31, 2004. The maximum amount of the agreement is $609,000. Funds to pay for these services are included in San Mateo Medical Center's FY2003-04 Adopted Budget and funds will be included in the FY2004-05 Recommended Budget.

ATTACHMENT A

1.

General Description of RFP

A Request for Proposals (RFP) was conducted for blood and blood derivatives and was sent to prospective vendors in Oct. 2000. The RFP described current services and requirements for the San Mateo Medical Center Clinical Lab.

2.

List key evaluation criteria

Service

Availability Cost

Logistics

Customer Service

3.

Where advertised

Not advertised.

4.

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

American Red Cross

Blood Centers of the Pacific

Stanford Medical School Blood Center

5.

Total requests for quotes conducted

Three

6.

Number of proposals received

One

7.

Who evaluated the proposal

Director of Materials Management

Laboratory Chief Technologist

Clinical Supervisors

8.

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

American Red Cross, 2631 North 1^st Street, San Jose, CA 95134

Blood Centers of the Pacific, 270 Masonic Avenue, San Francisco, CA 94118

Stanford Medical School Blood Center, 800 Welch Road, Palo Alto, CA 94304

Ste. 250, Alameda, CA 94501