COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

January 5, 2007

BOARD MEETING DATE:

January 23, 2007

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 Seton Medical Center

RECOMMENDATION:

Adopt a Resolution:

A.

Waiving the Request for Proposals (RFP) Process

B.

Authorizing the President of the Board to execute an Agreement with Seton Medical Center for tertiary medical services for the period July 1, 2006 through June 30, 2007 in an amount not to exceed $1,000,000.

VISION ALIGNMENT:

Commitment: To Ensure Basic Health and Safety for All.

Goal(s): Provide residents access to healthcare and preventive care.

The Agreement contributes to this commitment and goal by providing specialty cardiac and outpatient services, including radiation treatment and sleep lab.

Performance Measure(s):

Measure

FY 2005-06
Actual

FY 2006-07
Projected

Number of patient referrals for treatment at Seton Medical Center

195

280

BACKGROUND/DISCUSSION:

San Mateo County is responsible for providing medical care to its medically indigent adult population. San Mateo Medical Center (SMMC), as a general acute care hospital does not provide certain highly specialized services. A contract with Seton Medical Center ensures that specialty services are readily available. Services provided under this agreement are required medical services that are not presently provided at SMMC. The majority of referrals to Seton are for inpatient cardiac and outpatient services. Examples of other services include higher resolution Magnetic Resonance Imaging (MRI), radiation therapy, sleep lab, and cardiac specialty services. The previous contract with Seton Medical Center expired on June 30, 2006. Contract negotiations took place over an extended period of time and were not concluded until November 2006. An extended review process and turnover of staff delayed finalization of the contract documents.

All patients referred to Seton Medical Center undergo utilization review to minimize hospital stays and maintain control over costs. Comprehensive per diem rates are negotiated as part of tertiary care contracts to account for patient transitions through each level of care, including intensive (ICU), telemetry (step down), stabilized (med/surg), observation, and eventual discharge.

A waiver of the RFP process is being requested. SMMC has established contracts with most of the hospitals on the Peninsula to provide services that SMMC cannot. Contracting with multiple hospitals will ensure that there are a sufficient number of alternative options in a time when many hospitals have capacity issues. Seton has been a partner of SMMC for years and has provided high quality cost-effective care.

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 July 1, 2006 through June 30, 2007. The maximum amount the County shall be obligated to reimburse Contractor is $1,000,000. The maximum amount of the previous contract with Seton Medical Center for one year of services was $750,000. Funding is included in the SMMC’s adopted FY2006-07 budget.