COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

February 23, 2006

BOARD MEETING DATE:

March 14, 2006

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

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

SUBJECT:

Amendment to the Agreement with MedQuist Transcriptions, Ltd.

RECOMMENDATION:

Adopt a resolution authorizing the President of the Board to execute an Amendment to the Agreement with MedQuist Transcriptions, Ltd. to provide medical transcription services, increasing the amount by $350,000 and bringing the total obligation to $5,604,622; extending the term by three months, and adding Compliance with Contractor Employee Jury Service Ordinance language to the Agreement.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.
Goals 5: Residents have access to healthcare and preventive care.

The Agreement contributes to the commitment and goal because MedQuist Transcriptions, Ltd. provides transcription services that support system-wide availability of critical health information.

Performance Measure(s):

Measure

FY 2004-05
Actual

FY 2005-06
Projected

Percent of time that transcribed reports are available throughout SMMC

98%

98%

BACKGROUND:

Transcribed reports provide for the availability of health information throughout San Mateo Medical Center (SMMC), including Clinics and the Emergency Room, for continuation and quality of patient care. In addition, the transcribed medical record contains the most accurate record of medications a patient is receiving and is crucial for Medication Reconciliation, a National Patient Safety Goal. SMMC has encouraged increased dictation of patient encounters to increase communication across our system. This includes using dictation and transcription for all admissions and summaries of hospital inpatient stays, same day surgeries, outpatient clinic visits including the satellite clinics, emergency department visits, and ancillary tests through a contractor. Excluded from this service is pathology and radiology dictation, which are under separate contract. The contractor provides the equipment needed for dictating and equipment maintenance services.

In anticipation of the end of SMMC’s contract with MedQuist and with an interest in testing the current marketplace for newer, higher quality, and lower cost services, SMMC conducted an RFP process in September, 2005.

DISCUSSION:

Six proposals were received and evaluated. Two vendors were selected for further evaluation based on quality, pricing, experience, and references. SMMC is negotiating terms and needs an additional three months to complete these negotiations and begin implementation of a new transcription system. As a result, SMMC is requesting your Board approve an extension to the Agreement with MedQuist.

To allow for costs incurred during this period, the maximum amount of the Agreement with MedQuist needs to be increased by $350,000. MedQuist has no staff in Northern California. Based on this, a waiver for Equal Benefits Compliance was requested and granted on August 12, 2003 by Resolution 66225.

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

FISCAL IMPACT:

The Amendment increases the maximum amount of the Agreement by $350,000, from $5,254,622 to $5,604,622, and extends the term of the Agreement by three months, making the new term of the Agreement May 1, 2001 to July 31, 2006. Funds are included in SMMC’s FY2005-06 Adopted Budget and funds will be included in the Recommended Budget for FY2006-07.