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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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San Mateo Medical Center
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DATE:
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August 18, 2005
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BOARD MEETING DATE:
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September 13, 2005
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Nancy J. Steiger, Chief Executive Officer, San Mateo Medical Center
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SUBJECT:
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Third Amendment to the Previous Agreement and New Agreement with Gambro Healthcare Renal Care, Inc., a Nevada Corporation
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RECOMMENDATION:
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Adopt a Resolution
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1.
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Authorizing the President of the Board to execute a third amendment to the previous agreement with Gambro Healthcare Renal Care, Inc., A Nevada Corporation to provide acute dialysis service for patients at San Mateo Medical Center increasing the amount by $1,350 bringing the total obligation to $438,350
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2.
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Authorizing the President of the Board to execute a new Agreement with Gambro Healthcare Renal Care, Inc., a Nevada Corporation to provide acute dialysis services for patients at San Mateo Medical Center for the term July 1, 2005 to June 30, 2007, with an option for a third year, in an amount not to exceed $620,000 for the two-year term
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3.
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Authorizing the Chief Executive Officer of San Mateo Medical Center to execute amendments not to exceed $25,000
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VISION ALIGNMENT:
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Commitment: Ensure Basic Health and Safety for All.
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Goal 5: Provide residents access to healthcare and preventive care
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The Agreement contributes to this commitment and goal by providing renal care services to county patients.
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Performance Measure(s):
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Measure
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FY 2004-05
Actual
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FY 2005-06
Projected
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Average number of procedures per year
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804
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850
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BACKGROUND:
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San Mateo County is responsible for providing medical care to its medically indigent adult (MIA) population. This care includes acute inpatient dialysis treatment at San Mateo Medical Center (SMMC). Because of necessary equipment and specialized staffing, it is more economical to contract out for this service.
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DISCUSSION:
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On June 28, 2005, you approved an Amendment to the previous Agreement with Gambro increasing the maximum amount of the Agreement by $37,000, from $400,000 to $437,000, to cover invoices incurred due to an increased need for services.
It is difficult to anticipate how many patients will require acute dialysis. Using average monthly fees, it was anticipated $37,000 would cover the remainder of the previous contract. This estimate however, came up short of $1,350. It is necessary to amend the previous contract to increase the maximum amount to $438,350
In May 2005, SMMC issued a Request for Proposals for the provision of acute inpatient dialysis treatment. A Request for Proposals was mailed to seven providers of renal care: Artificial Kidney Services, Davita, Fresenius, and Gambro Healthcare Renal Care, Inc., a Nevada Corporation, Mills-Peninsula, Philip Hertz, M.D. and Satellite Dialysis Centers, Inc. Artificial Kidney Services and Gambro responded to the RFP. After a rating process with physicians, nursing and administrative raters, Gambro was selected as the vendor of choice.
Gambro Healthcare has been providing SMMC with high quality renal care since 1999. They maintain compliance with regulatory standards. Gambro Healthcare provides acute dialysis on an all-inclusive basis (equipment, supplies, appropriate personnel and inservice training) upon written order by a member of SMMC’s medical staff. Gambro Healthcare has adequate capacity for staffing; information systems in place; evidence of program competency, creativity and initiative; low cost and other key factors required for quality renal care services.
The Agreement has been reviewed and approved by Risk Management and County Counsel.
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FISCAL IMPACT:
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The maximum amount of the previous agreement is increased by $1,350 from $437,000 to $438,350. The term of the previous agreement was July 1, 2003 to June 30, 2005. Funds were included in the SMMC’s FY2004-05 Adopted Budget.
The term of the new Agreement is July 1, 2005 through June 30, 2006, with an option for a third year. The Agreement maximum is $620,000. Gambro has maintained their rates from the previous contract. Funds to pay for these services have been included in SMMC’s Recommended Budget for FY2005-06. Funds will be included in the Budget Request for FY2006-07.
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Exhibit A
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1.
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General Description of RFP
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Services to provide acute inpatient dialysis services to medically indigent adults at San Mateo Medical Center.
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2.
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List key evaluation criteria
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Capacity for staffing; information systems in place; evidence of program competency, creativity and initiative; low cost
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3.
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Where advertised
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Not Advertised
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4.
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In addition to any advertisement, list others to whom RFP was sent
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N/A
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5.
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Total number sent to prospective proposers
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7
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6.
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Number of proposals received
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2
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7.
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Who evaluated the proposals
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Physician, Nursing and Administrative staff.
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8.
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In alphabetical order, names of proposers (or finalists, if applicable) and location
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Artificial Kidney Services
437 Garden Avenue
San Bruno, CA 94066
Gambro Healthcare Renal Care, Inc.
a Nevada Corporation
115 Columbia
Aliso Viejo, CA 92656
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