COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

November 15, 2005

BOARD MEETING DATE:

December 13, 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:

Agreement with Blood Centers of the Pacific

 

RECOMMENDATION:

Adopt a resolution:

   

A.

Waiving the Request for Proposal (RFP) process.

 

B.

Authorizing the execution of an Agreement with Blood Centers of the Pacific to provide blood and blood products to San Mateo Medical Center (SMMC) for the term January 1, 2006 to December 31, 2006, in the amount of $708,000.

 

VISION ALIGNMENT:

Commitment: Ensure Basic Health and Safety for All.

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

The Agreement contributes to this commitment and goal by providing blood, blood components, and blood derivatives to county patients at SMMC.

 

Performance Measure(s):

Measure

FY 2005-06

FY 2006-07

Number of units of blood products used

2012

2676

 

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 Proposal (RFP) for blood and blood services. Criteria was based on services provided, including delivery time for blood products, plan for blood shortages, shipping/transportation, emergency blood requests, 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. As with previous RFPs, Blood Centers of the Pacific was the only business to respond.

Since the last RFP for blood services was conducted only two years ago, a new RFP for these services will be conducted in October 2006.

 

DISCUSSION:

Blood Centers of the Pacific has been providing services to SMMC since 1989. The maximum amount on the previous agreement with Blood Center of the Pacific was $708,000 for one year. Evolving technology and frequent modifications to FDA requirements affect the costs incurred in producing a safer product. Due to these rapidly changing requirements which consequently affect their rates, Blood Centers of the Pacific will only enter into one-year agreements.

Effective January 1, 2006, Blood Centers of the Pacific will increase their rates by 4.5% for the most commonly used products. In an effort to maintain costs at the previous year’s expenses, blood product usage and ordering practices will be monitored for better utilization.

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

 

FISCAL IMPACT:

The term of the agreement is one year, January 1, 2006 through December 31, 2006. The maximum amount of the agreement is $708,000. Funds to pay for these services are included in San Mateo Medical Center’s FY2005-06 Adopted Budget and funds will be included in the budget requests for FY2006-07.