COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

July 6, 2005

BOARD MEETING DATE:

July 26, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

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

SUBJECT:

Third Amendment to the Agreement with Medisave Pharmacies, Inc., dba Kindred Pharmacy Services

Recommendation

Resolution authorizing a Third Amendment to the Agreement with

Medisave Pharmacies, Inc., dba Kindred Pharmacy Services to provide

pharmaceutical services and infusion services to patients of Burlingame Long

Term Care, extending the term of the agreement to August 31, 2005, and

increasing the amount by $40,000 to $240,000.

Vision Alignment

Commitment: Ensure Basic Health and Safety for All.

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

The agreement contributes to the goal by providing pharmacy services, including all medications and IV therapy, to residents of Burlingame Long Term Care.

Performance Measures:

Measures

FY05-06

Timely delivery of medication for Long Term Care

93%

Monthly drug regimen review

100%

Timely delivery of pharmacy services ensures efficient care to Burlingame Long Term Care residents. A constant drug regimen review of patient charts assures appropriateness of drug therapy for each patient and awareness of any drug side effects protecting the patient from adverse drug reactions.

Background

Regulatory requirement states that Long Term Care is to have a clinical pharmacist

for regular medication review and administration.

On September 14, 2004, your Board approved an agreement with Medisave

Pharmacies, Inc., dba kindred Pharmacy Services to provide pharmacy services,

including all medications and IV therapy on a daily and emergency basis, to

Burlingame Long Term Care. The term of the Agreement was April 1, 2004 to

March 31, 2005. The agreement was amended on March 1, 2005 to eliminate the

pricing formula in order to accommodate any future changes in Medi-Cal

reimbursement.

SMMC has two contracts providing pharmaceutical services. Pharmerica provides services to SMMC Long Term Care and Medisave Pharmacies, Inc., dba Kindred Pharmacy Services provides services to Burlingame Long Term Care. Medisave Pharmacies, Inc. expired on March 31, 2005, whereas Pharmerica expired June 30, 2005. On May 17, 2005, the Agreement with Medisave Pharmacies, Inc. was amended to extend the term of the Agreement to June 30, 2005 and to increase the maximum amount to cover the pharmacy costs for the extended period. This allowed services to continue at BLTC until the RFP was completed and a contract was awarded to one vendor that would provide services to both SMMC and BLTC.

Discussion

In April 2005, San Mateo Medical Center (SMMC) conducted a Request for Proposal (RFP) process for pharmacy services. As a result of the RFP, the contract to provide pharmacy services at both SMMC and BLTC has been awarded to PharMerica. A new Agreement with PharMerica will be presented to your Board for approval on July 26, 2005. Both agreements are included in the Continuing Resolution your Board approved on July 11, 2005.

PharMerica has advised SMMC that it will take 8 weeks to fully equip BLTC in order to provide pharmacy services. Medisave has advised that it will take same time to vacate their equipment from BLTC. As a result, SMMC is extending the Agreement with Medisave so that pharmaceutical services may continue at Burlingame Long Term Care until PharMerica is fully operational at BLTC.

To allow for costs incurred which have been averaging $20,000 a month and the extension of the term of the term of the Agreement, the maximum amount needs to be increased by $40,000.

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

Fiscal Impact

The Amendment extends the term of the Agreement by two months, making the new term of the Agreement, April 1, 2004 to August 31, 2005. The Amendment also increases the maximum amount of the Agreement by $40,000, from $200,000 to $240,000. Funds are included in San Mateo Medical Center’s Recommended Budget for FY2005-2006.