COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

May 3, 2007

BOARD MEETING DATE:

June 19, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Sang-ick Chang, Interim Chief Executive Officer

SUBJECT:

Execution of an Amendment to Agreement with Mills-Peninsula Health Services

 

RECOMMENDATION:

Adopt a Resolution:

    1. Authorizing the President of the Board to execute an Amendment to the Agreement with Mills-Peninsula Health Services to adjust the rate paid for “O/P (Outpatient) All Other Services” from “55% of Charges” to 35% of Charges for the period from January 1, 2007 through June 30, 2007.

    2. Reducing the contract with Mills-Peninsula Health Services by (SIXTY THOUSAND DOLLARS) $60,000 for the contract period January 1, 2007 through June 30, 2007.

 

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 5: Provide residents access to healthcare and preventive care.

The Amendment to this Agreement contributes to this commitment and goal by providing the patient population of San Mateo Medical Center (SMMC) with access to specialty cardiac and outpatient services at rates lower than in the previous version of this contract effective January 1, 2007.

BACKGROUND/DISCUSSION:

San Mateo County is responsible for providing medical care to its population. SMMC is a general acute care hospital and does not provide certain highly specialized services. A contract with Mills-Peninsula Health Services ensures that specialty services are readily available.

Services provided under this agreement are required medical services that are not presently provided at San Mateo Medical Center. The majority of the 5% of patient referrals to Mills-Peninsula are for inpatient cardiac and outpatient vascular services. Examples of other services include higher resolution Magnetic Resonance Imaging (MRI) and cardiac catheterization.

All patients referred to Mills-Peninsula Health Services 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. The negotiated per diem rates are 3% less than those received by SMMC from the Health Plan of San Mateo (HPSM). Some of these rates were negotiated, for future contracting and retroactively to January 1, 2007 through June 30, 2007 which will result in lower costs to SMMC. The rate for one of these specialized procedure, cardiac catherization, which is now a significantly required service needed by our patients, was identified as an opportunity for renegotiation and considerable annual savings when implemented with all of the hospital contracts.

The term of the agreement is two years from July 1, 2005 to June 30, 2007. County Counsel has reviewed and approved this amendment to the agreement.

 

TERM AND FISCAL IMPACT:

The term of the Agreement is July 1, 2005 through June 30, 2007. The maximum amount the County shall be obligated to pay Contractor is $1,440,000. Funds are included in the San Mateo Medical Center’s FY2006-2007 Adopted Budget. The fiscal impact will be a reduction in expense of 36.4% approximately, $10,000 per month.