COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

September 19, 2007

BOARD MEETING DATE:

October 16, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Sang-ick Chang, Chief Executive Officer, San Mateo Medical Center

SUBJECT:

Agreement with Peninsula Surgical Specialists Medical Group, Inc.

RECOMMENDATION:

Adopt a resolution:

1. Authorizing the President of the Board to execute an Agreement with Peninsula Surgical Specialists Medical Group, Inc. to provide general, thoracic, and vascular surgery services for the period July 1, 2007 through June 30, 2009 for an amount not to exceed $2,200,000.

2. Authorizing the Chief Executive Officer of San Mateo Medical Center or the Chief Executive Officer’s designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.

VISION ALIGNMENT:

Commitment: To Ensure Basic Health and Safety for All.

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

The Agreement contributes to this commitment and goal by providing basic general, thoracic, and vascular surgery services.

Performance Measure:

Measure

FY 2006-07
Actual

FY 2007-08

Projected

Number of relative value units (RVU) units in General, Vascular, and Thoracic procedures

11,268

11,610

BACKGROUND:

Peninsula Surgical Specialists Medical Group, Inc. (PSSMG) has provided general, thoracic, and vascular surgery and clinic services to the San Mateo Medical Center for the last two years under the Agreement with David Jegge, M.D. In particular, these disciplines serve as the basis for surgical services for the abdominal organs, conditions of the chest, and general vascular access. SMMC has a continuous need for general, thoracic, and vascular services and PSSMG offers the hospital the benefits of experienced practitioners familiar with the complex nature of the County patient base.

DISCUSSION:

Contractor productivity is being measured by the Relative Value Work Units (RVUs), an industry-wide measurement of medical care that indicates the level of quality standards being met by an individual practitioner.

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 Agreement represents an overall increase of 16% over the previous Agreement in the first year which reflects current market rates that will enable SMMC to continue these services. There is no further increase in the second year of the Agreement. Current HIPAA language has also been incorporated. Risk Management and County Counsel have approved the Agreement.

TERM AND FISCAL IMPACT:

The term of the Agreement is July 1, 2007 through June 30, 2009. The maximum amount the County shall pay Contractor is $2,200,000, which represents an increase of sixteen percent (16%) which reflects current market rates. Funds are included in the San Mateo Medical Center’s FY2007-08 Approved Budget and will be included in the FY2008-09 Recommended Budget.