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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Health Department
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DATE:
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April 17, 2006
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BOARD MEETING DATE:
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May 2, 2006
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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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Charlene A. Silva, Director of Health
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Gale Bataille, Director of Mental Health Services
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SUBJECT:
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Amendment to agreement with Laboratory Corporation of America
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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 an amendment to the agreement with Laboratory Corporation of America for the term January 1, 2006 through June 30, 2008 for a maximum obligation of $675,000; and
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2)
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Authorizing the Director of Health to execute subsequent amendments and minor modifications not to exceed $25,000 in aggregate and to make minor changes in the types of services and activities provided under the agreement.
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VISION ALIGNMENT:
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Commitment: To Ensure Basic Health and Safety for all.
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Goal 8: Help vulnerable people–the aged, disabled, mentally ill, at risk youth and others-achieve a better quality of life.
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The amended Agreement contributes to this commitment and goal by providing clinical laboratory services for clients of Mental Health Services and clients of Correctional Health Services.
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Performance Measures:
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Measure
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FY 2005-06
Actual
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FY 2006-07
Projected
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Mental Health: Percentage of monthly electronic tape billing files delivered within ninety (90) days of the end of month.
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N/A*
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90%
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Correctional Health: Percentage of results of routine tests with a 24-hour turn-around result time provided within 24 hours of receipt of specimen.
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N/A*
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95%
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*This is a new service for FY 2005-06.
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BACKGROUND:
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In May of 2005, the Health Department released a Request for Proposals for clinical laboratory services for Mental Health Services and Correctional Health. Proposals were received from Laboratory Corporation of America (LabCorp) and Quest Diagnostic, Incorporated. LabCorp was selected to provide these services due to their lower pricing and their capability to provide required electronic billing for Mental Health. Services were anticipated to begin on December 1, 2005. Due to lengthy contract negotiations with this provider the service start date was delayed until January 1, 2006. On December 28, 2005 the County Manager approved the original agreement for the term January 1, 2006 through June 30, 2006 for a maximum of $100,000.
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DISCUSSION:
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LabCorp provides clinical laboratory services for clients of the Mental Health Services Division and for Correctional Health Services. LabCorp shall provide specimen transport services and phlebotomy services for both Mental Health and Correctional Health. The agreement is being amended to extend the term through June 30, 2008 and to increase the agreement maximum to $675,000.
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The amended agreement has been approved by County Counsel and Risk Management.
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FISCAL IMPACT:
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The agreement maximum is being increased by $575,000 for the amended agreement term, to a new maximum of $675,000. Of that amount, the maximum for Mental Health Services is $365,000 and the maximum for Correctional Health Services is $310,000.
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The amended maximum for FY 2005-06 is $155,000, including $85,000 for Mental Health and $70,000 for Correctional Health. These funds are included in the approved budget for FY 2005-06. For Mental Health 85% or $72,250 will come from state and federal Medi-Cal, and $12,750 is the Net County Cost. Funding for Correctional Health is 100% Net County Cost. The total Net County Cost for FY 2005-06 is $82,750.
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Similar funding arrangements will be in place for FY 2006-07 and FY 2007-08.
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