COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health Department

DATE:

July 13, 2007

BOARD MEETING DATE:

July 24, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Charlene A. Silva, Director, Health Department

Srija Srinivasan, Director, Health Policy and Planning

SUBJECT:

Amendment to the Agreement between the County of San Mateo and Pacific Health Consulting Group

RECOMMENDATION:

Adopt a Resolution:

1.

Waiving the Request for Proposal (RFP) process; and

2.

Authorizing the President of the Board to execute an Amendment to the Agreement with Pacific Health Consulting Group, lengthening the term from August 31, 2007 to December 31, 2007 and increasing the amount by $73,908 for a total obligation of $122,030.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

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

This Amendment contributes to this commitment and goal by helping support the planning and development process for a health insurance product offered by the Health Plan of San Mateo targeted at uninsured adults in San Mateo County.

Performance Measure:

Measure

FY 2006-07
Estimated

FY 2007-08
Projected

Number of community members engaged in addressing high priority health issues

450

450

BACKGROUND:

In response to the growing number of uninsured adults in San Mateo County, your Board formed the Blue Ribbon Task Force on Adult Health Care Coverage Expansion (Task Force) on June 26, 2006. The charge of this group is to explore options for providing comprehensive healthcare access and/or insurance coverage to uninsured adults in San Mateo County living at or below 400% Federal Poverty Level and to bring recommendations to the Board of Supervisors by July 2007.

Over the past year the 37-member task force, comprised of representatives from private and public healthcare provider organizations, labor, chambers of commerce, advocacy groups, the Health Plan of San Mateo, cities, and San Mateo County departments, met seven times to explore key considerations in expanding healthcare coverage and to decide on recommendations. Required analysis was conducted through three workgroups: Health Care Model Development, Financing Mechanism, and Population Definition.

DISCUSSION:

Some small businesses in San Mateo County would like to provide health insurance to employees but cannot afford the commercial products currently available. In addition, some uninsured adults are willing to pay for insurance but do not have access to a product which they find affordable. In order to meet these potential market niches and reduce the number of uninsured adults in San Mateo County, the Health Plan of San Mateo (HPSM) committed to exploring the development of a low-cost insurance product. The Task Force supported the product exploration and requested that HPSM conduct a feasibility analysis. Health Department staff worked with HPSM staff to secure a consulting team that could build on other analysis completed for the Task Force.

In November 2006 the County Manager’s Office approved an Agreement with Pacific Health Consulting Group (PHCG) to facilitate and assist the Task Force and its workgroups. It is necessary to waive the Request for Proposals process because PHCG possesses strong knowledge of the Task Force’s objectives through its original contract and is able to conduct the research and analysis necessary to determine options for a low-cost health insurance product within the time frame established for the Task Force by the Board of Supervisors.

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. This Amendment, Memo, and Resolution have been reviewed and approved by County Counsel.

FISCAL IMPACT:

The Amendment to the Agreement with PHCG extends the term, which was originally from September 13, 2006 through August 31, 2007, through December 31, 2007, and increases the amount of the Agreement by $73,908 for a total obligation of $122,030. Costs of the Amendment will be paid for through grants received from the California HealthCare Foundation and Blue Shield of California Foundation and are included in the tentatively Adopted FY 2007-08 Budget. Approval of this item has no Net County Cost impact.