COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

March 6, 2007

BOARD MEETING DATE:

March 27, 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:

Acceptance of a Grant Award from the Sequoia Healthcare District

RECOMMENDATION:

Adopt a Resolution:

1.

Accepting a grant from the Sequoia Healthcare District (SHD) in the amount of $3,310,700 to provide healthcare to the indigent and uninsured patients of the Fair Oaks Clinic.

2.

Authorizing the execution of an Agreement with the Sequoia Healthcare District in connection with receipt of the grant for the term July 1, 2006 to June 30, 2008.

VISION ALIGNMENT:

Commitment:

Goal 5: Residents have access to healthcare and preventive care.

SMMC’s partnership with Sequoia Healthcare District strengthens SMMCs commitment to provide medical care to the economically disadvantaged residents of the Redwood City area.

Performance Measure(s):

Measure

FY 2006-07
Actual

FY 2007-08
Projected

Percent of increase each funding year in the number of indigent and uninsured patients served at the Fair Oaks Clinics

5% increase

5% increase

SMMC and Fair Oaks Clinics will provide agreed-upon services to indigent and uninsured patients within the funding parameters of the SHD grant.

90%

95%

BACKGROUND:

San Mateo Medical Center has been providing health services to the residents of Redwood City’s North Fair Oaks neighborhood for more than thirty years. During that time, the population of the neighborhood has increased, along with the number of uninsured and the need for medical care. During the past year, the Fair Oaks Adult and Children’s Clinics provided over 33,000 outpatient visits to more than 12,400 individuals living in or near the neighborhood. Moreover, 8,500 of these visits were for patients without insurance, enrolled in the Medical Center’s WELL Program or unable to pay for care. As the safety net public hospital, San Mateo Medical Center has a mission to provide medical services to the uninsured throughout its system of care, but paying for the cost of delivering this care is a perpetual challenge and this burden cannot be handled by the Medical Center alone. Fair Oaks Clinics serve a patient population that resides primarily within the geographic boundaries of Sequoia Healthcare District.

DISCUSSION:

In July 2006, SMMC submitted a proposal to the Board of Directors of SHD, requesting that a portion of the funds held by the Board on behalf of the residents of the District be granted to SMMC for the purpose of covering the otherwise unreimbursed cost of providing healthcare to the indigent and uninsured patients of its Fair Oaks Clinics. In September 2006, the Board of SHD agreed to this proposal and granted SMMC $1.6 million each year for two years for this purpose.

In accepting this grant, SMMC agrees to:

1. Demonstrate, on an ongoing basis, that the population served by these funds resides primarily within the boundaries of SHD.

2. Demonstrate, on an ongoing basis, that the costs charged against this funding are neither subject to nor eligible for reimbursement through government or private insurance programs.

Sequoia Healthcare District 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.

County Counsel has reviewed and approved this Agreement.

FISCAL IMPACT:

The total cost to SMMC for providing medical care to the uninsured residents of the Redwood City area each year is $1,655,350. The maximum amount of the grant is $3,310,700 for the term July 1, 2006 to June 30, 2008. The SHD grant will help to offset the County's financial obligation for providing healthcare to the indigent residents in the Fair Oaks area. There are sufficient funds in the SMMC budget to cover the costs for FY2006-07. As a result, no ATR is required at this time. Additional revenue will be appropriated in the FY2007-08 budget.