COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

April 27, 2005

BOARD MEETING DATE:

May 17, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer

SUBJECT:

Amendment to the Agreement with Stanford Hospital and Clinics

RECOMMENDATION:

Adopt a resolution authorizing the President of the Board to execute an Amendment to the Agreement with Stanford Hospitals and Clinics to provide physician services increasing the maximum Agreement obligation by $461,047 from $830,000 to $1,291,047.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for All

Goal(s): Provide county residents access to the latest in leading health and preventive care practices.

Performance Measure(s):

Measure

FY 2004-05
Actual

FY 2005-06
Projected

Number of visits and treatments in the areas of internal medicine, obstetrics, gynecology, and infectious diseases.

650

650

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. In September 2003, the Board approved an Amendment to extend 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 from July 1, 2003 to the present. Because of the continued complexities in negotiating new physician compensation packages with a University, including the decision on what type of services would continue to be provided at the Willow Clinic, new terms were not agreed upon until recently. 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, 2005 to enable Stanford Hospital and Clinics to be paid for services rendered between July 1, 2003 and June 30, 2005. A new contract with a July 2005 effective date is currently being negotiated..

Participation with Stanford Hospital and Clinics allows county patients to have access to therapies that they otherwise may not be able to receive and the County to continue to remain on the leading edge of clinical research in the areas or internal medicine, obstetrics and gynecology, gastroenterology, infectious diseases.

Internal Medicine services are provided under the general direction of the Chief Executive Officer for the San Mateo Medical Center. Monitoring and evaluation of the quality of services provided by contractor are accomplished through peer review by the Quality Assurance Committee and the Executive Committee of the medical staff.

FISCAL IMPACT:

The term of the previous Agreement is being amended to extend the contract two years from July 1, 2003 through June 30, 2005. The maximum amount the County shall be obligated to pay Contractor is increased by $461,047 from $830,000 to $1,291,047. Funds are included in the San Mateo Medical Center’s FY2004-05 Adopted Budget and will be included in the FY2005-06 Recommended Budget.