RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION 1) AUTHORIZING THE BOARD OF SUPERVISORS TO IMPLEMENT AN AVERAGE INCREASE OF 12% TO 62% TO SAN MATEO MEDICAL CENTER’S ANCILLARY SERVICE FEE STRUCTURES BY SELECTED LINE ITEM, AND 2) DELEGATING THE FOLLOWING TO THE CHIEF EXECUTIVE OFFICER (CEO) OF SAN MATEO MEDICAL CENTER: a) AUTHORITY TO IMPLEMENT THE FY 2006-07 RATE INCREASE b) AUTHORITY TO ADJUST/ADD/DELETE RATES WITHIN THE MEDICAL CENTER’S RATE STRUCTURE, BUT ONLY AS DICTATED BY FEDERAL AND STATE REGULATION CHANGES OR REQUIREMENTS, WITH THE STIPULATION THAT ANY FUTURE ADJUSTMENT TO FY 2006-07 RATES, NOT WITHSTANDING FEDERAL OR STATE REGULATION CHANGES OR REQUIREMENTS, GREATER THAN 15% REQUIRE PRIOR BOARD APPROVAL AND c) AUTHORITY TO NEGOTIATE DISCOUNTS WITH NON-FEDERAL, NON-STATE, NON-CONTRACTED THIRD PARTY HEALTH CARE INSURANCE CARRIERS AND SELF PAY INDIVIDUALS

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, it is necessary to implement an average rate increase to the San Mateo Medical Center Charge Master of: 39% for laboratory services, 39% for pharmacy services, 20% for rehabilitation services, 21% for clinic setting procedures, 12% for radiology services, 62% for emergency room technical services, by selected line item; and

WHEREAS, a line item study of the San Mateo Medical Center’s Charge Master file with comparable hospitals demonstrated that San Mateo Medical Center’s average charge structure was below other hospitals in the following ancillary services: Laboratory fee structure was 39% below the average, Pharmacy fee structure was 39% below average, Rehabilitation Services fee structure was 20% below average, Clinic setting procedures were 21% below average, Radiology fee structure was 12% below average, Emergency Room Services fee structure was 62% below average; and

WHEREAS, San Mateo Medical Center should maintain competitive pricing for its services for the following reasons: 1) to meet the revenue target for San Mateo Medical Center’s FY2006-07 Budget, 2) to avoid losing a significant amount of revenue from the federal and state governments, and 3) to ensure recovery of appropriate reimbursement from commercial payors.

WHEREAS, it is in the best interest of the County to implement a 12% to 62% average rate increase to the San Mateo Medical Center Charge Master for ancillary services:

NOW THEREFORE, IT IS HEREBY RESOLVED that the President of this Board of Supervisors has approved the following average increase to ancillary service fee structures for and on behalf of the County of San Mateo:

39% for Laboratory services

39% for Pharmacy services

20% for Rehabilitation services

21% for Clinic procedure services

12% for Radiology services

62% for Emergency room technical (non-physician) services

NOW THEREFORE, IT IS HEREBY FURTHER RESOLVED that the following is delegated to the Chief Executive Officer of San Mateo Medical Center: a) authority to implement the FY2006-07 rate increase b) authority to adjust/add/delete rates within the Medical Center’s rate structure, but only as dictated by federal and state regulation changes or requirements, with the stipulation that any future adjustment to FY 2006-07 rates, not withstanding federal or state regulation changes or requirements, greater than 15% requires prior Board approval and c) authority to negotiate discounts with non-federal, non-state, non-contracted third party health care insurance carriers and self pay individuals