COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

January 5, 2005

BOARD MEETING DATE:

January 25, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer

 

SUBJECT:

Amendment to the Previous Agreement with Blood Centers of the Pacific and New Agreement with Blood Centers of the Pacific

 

Recommendation

Adopt a resolution authorizing the President of the Board to execute:

1)

an Amendment to the previous agreement with Blood Centers of the Pacific to supply blood and blood products to San Mateo Medical Center (SMMC), increasing the maximum amount by $70,000 and bringing the total obligation to $679,000

2)

a new agreement with Blood Centers of the Pacific for the term January 1, 2005 to December 31, 2005, in an amount not to exceed $708,000.

   

Vision Alignment

Commitment: To Ensure Basic Health and Safety for All.

Goal 5: Provide residents access to healthcare and preventive care.

The agreement contributes to this commitment and goal by providing specialty services to county patients.

Performance Measure:

Measure

FY2004-05

FY2005-06

To meet the demands for blood and blood products to the medically indigent population of San Mateo County

100%

100%

 

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 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. The term of the contract with Blood Centers of the Pacific is January 1, 2004 to December 31, 2004, with a maximum amount of $609,000.

 

Discussion

Blood Centers of the Pacific has been providing services to San Mateo County General Hospital since 1989. San Mateo Medical Center’s need for blood, blood components, and blood derivatives has increased over the past year, increasing the monthly average to approximately $56,600 and thereby depleting the maximum amount of the previous agreement. An increase of $70,000 is being requested to allow San Mateo Medical Center to pay invoices incurred for the increased services provided during the term of the previous agreement.

Effective January 1, 2005, Blood Centers of the Pacific has again increased their rates by 4%. This increase will raise the monthly average to $59,000. Due to evolving technology, 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 that consequently affect their rates.

Risk Management and County Counsel have approved the Amendment to the previous Agreement and the new Agreement.

 

Term and Fiscal Impact

The previous Agreement is being amended to increase the maximum by $70,000, from $609,000 to $679,000. The term of the new Agreement is one year, January 1, 2005 to December 31, 2005. The maximum amount of the new Agreement is $708,000. Funds are included in the San Mateo Medical Center’s FY2004-05 Adopted Budget and will be included in Budget Request for FY2005-06.