COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

June 6, 2007

BOARD MEETING DATE:

June 26, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Sang-ick Chang, Interim Chief Executive Officer

SUBJECT:

Amendment to the Agreement with Sequoia Health Services

 

RECOMMENDATION:

Adopt a Resolution authorizing the President of the Board to execute an Amendment to the Agreement with Sequoia Health Services for tertiary medical services for the term of the Agreement from January 1, 2004 through December 31, 2005, increasing the maximum Agreement obligation by $25,000 from $350,000 to $375,000.

 

VISION ALIGNMENT:

Commitment: To Ensure Basic Health and Safety for All.

Goal 5: Provide residents access to healthcare and preventive care. The Amendment contributes to this commitment and goal by addressing the need for highly specialized medical services to County patients.

 

BACKGROUND:

San Mateo County is responsible for providing medical care to its population. San Mateo Medical Center (SMMC), as a general acute care hospital, does not provide certain highly specialized services. A contract with Sequoia Health Services ensured that specialty services were readily available.

Services provided under this agreement were required medical services that were not provided at SMMC. The majority of referrals to Sequoia were for radiation therapy and sleep study services. Examples of other services include cardiac specialty services i.e. arterial valve replacement.

 

DISCUSSION:

All patients referred to Sequoia Health Services underwent utilization review to minimize hospital stays and maintain control over costs. Comprehensive per diem rates were 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 term of the Agreement with Sequoia was January 1, 2004 to December 31, 2005 with a maximum amount of $350,000. Additional referrals for radiation therapy, sleep study and cardiac specialty services depleted the maximum amount in the Agreement. The Agreement is being amended to increase the maximum amount by $25,000 to pay invoices for expenses incurred during those two months.

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.

County Counsel has reviewed and approved this Agreement. Risk Management has approved the insurance coverage.

This amendment is only now being addressed due to staff vacancies in the two key contracting positions at the SMMC.

In February 2007, Sequoia Health Services notified SMMC that there were outstanding invoices that had not been paid from the prior Agreement. Invoices from Sequoia Health Services that were pending MediCal authorization arrived in December in the amount of not more than $25,000. An amendment to the contract is respectfully submitted to process this reimbursement.

 

FISCAL IMPACT:

The Agreement is being amended to increase the maximum contract amount by $25,000, from $350,000 to $375,000. The term of the Agreement remains the same. Funds were included in the San Mateo Medical Center’s FY2005-06 Adopted Budget.