COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

September 27, 2006

BOARD MEETING DATE:

October 17, 2006

SPECIAL NOTICE / HEARING:

NONE

VOTE REQUIRED:

MAJORITY

 

TO:

Honorable Board of Supervisors

FROM:

Nancy Steiger, Chief Executive Officer, San Mateo Medical Center

 

SUBJECT:

Agreement with Larry K. Fan, M.D. Inc.

 

Recommendation

Adopt a resolution authorizing the President of the Board to execute an agreement with Larry K. Fan, M.D. Inc. to provide plastic surgery services for the period September 1, 2006 through August 31, 2007 in the amount of $124,500

 

Vision Alignment

Commitment: To 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 specialty plastic surgery services to county patients, specifically in the area of non-cosmetic post-traumatic, post-cancer, and hand reconstructive care.

Performance Measure:

Measure

FY2006-07

Projected

Provide residents access to necessary post-surgical plastic surgery and reconstructive care

100%

Achieve organizational citizenship rating scores from Administration, Clinic staff, and Peers on all citizenship rating criteria

>80%

Increase overall RVU productivity for plastic surgery services

1720

Reduce the risk of healthcare-associated infections and adhere to infection control standards as defined by Joint Commission, Title 22, and other applicable standards.

100%

 

Background / Discussion

Plastic Surgery services are provided under the general direction of the Medical Director of San Mateo Medical Center. Such care includes professional plastic surgery services, specifically in the area of non-cosmetic post-traumatic, post-cancer, and hand reconstructive care.

The Regents of the University of California has provided plastic surgery services for the past two years. They notified SMMC in early 2006 that they would not be continuing a contract relationship with us beyond the next contract expiration date of June 30, 2006. SMMC began recruiting for plastic surgery services in March 2006 and identified two suitable candidates. After a panel interview, SMMC decided to adopt a two-provider model to reduce the heavy backlog of surgeries and balance the on-call requirement.

This Agreement incorporates a reimbursement model that measures industry standards for productivity. The source of productivity for plastic surgery service is the current Medicare Resource-Based Relative Value Scale (RBRVS) Relative Value Work Units (RVUs). UCSF provided an annual RVU level of 1147.50 for one half day of clinic and one half day of surgery. Dr. Fan shall provide 1 full day of surgery and one half day of clinic each for an increase in base projected RVU levels of 50%. The total budget from last year for plastic surgery services is correspondingly increased by 50%.

Risk Management and County Counsel have also approved the Agreement. The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.

 

Term and Fiscal Impact

The term of the agreement is from September 1, 2006 through August 31, 2007. The maximum amount County shall be obligated to reimburse Contractor for the increased level of service under this agreement is $124,500. Contractor is one of two doctors providing this service under separate contracts; therefore, the total amount for all plastic surgery services will be $249,000. The maximum amount of the previous contract with UCSF to provide a reduced level of service was $157,508.10. Funding is included in the San Mateo Medical Center’s adopted FY2006-07 budget.