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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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San Mateo Medical Center
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DATE:
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October 25, 2007
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BOARD MEETING DATE:
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November 6, 2007
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Sang-ick Chang, Chief Executive Officer, San Mateo Medical Center
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SUBJECT:
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Agreement with BioPathology Sciences Medical Corporation, Inc.
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RECOMMENDATION:
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Adopt a resolution:
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A.
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Waiving the Request for Proposal (RFP) process
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B.
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Authorizing the execution of an Agreement with BioPathology Sciences Medical Corporation, Inc. to provide anatomic pathology slide preparation and all histology services for surgical and biopsy procedures performed at San Mateo Medical Center and affiliated clinics for the term August 1, 2007 to July, 31, 2008, in an amount payable not to exceed $120,500
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C.
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Authorizing the Chief Executive Officer (CEO) of San Mateo Medical Center or 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
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VISION ALIGNMENT:
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Commitment: Ensure Basic Health and Safety for All.
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Goal 5: Provide residents access to healthcare and preventive care.
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The Agreement contributes to this commitment and goal by providing pathology slide preparation for the diagnosis and treatment of disease.
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Performance Measure(s):
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Measure
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Actual
FY 2006-07
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Projected
FY 2007-08
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Number of hours to provide slide preparation
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12 hours
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12 hours
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Number of blocks prepared
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7023 blocks
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8212 blocks
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BACKGROUND:
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Patient tissue specimens removed in surgery must be examined microscopically to complete a diagnosis. There are several specialized steps in preparing the tissues: processing, embedding (preparation of the block), sectioning and staining.
In 1999, Peninsula Pathologists Medical Group, Inc. (PPMG) and its’ subcontracted partner BioPathology Sciences Medical Group, Inc. (BPS) brought to the County the service of preparing the surgical specimens for microscopic examination by the pathologist. Although this was included in the San Mateo Medical Center (SMMC) PPMG contract (Resolution No. 067352), since 1999 this service has been provided exclusively by BPS.
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DISCUSSION:
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BPS continues to provide excellent tissue preparations for the examination and diagnosis of SMMC patients. PPMG and BPS requested that SMMC separate the histology portion from the other pathology services contract because these two companies are no longer contracting together. Histology services provide anatomic pathology slide preparation and all histology services for surgical and biopsy procedures performed at SMMC and affiliated clinics.
Waiving the RFP process benefits SMMC, at this time, because the SMMC laboratory is in the process of reorganization through the beginning of next year (calendar year 2008) and SMMC needs continuity of services to enable completion of the reorganization. The reorganization will result in a significant financial benefit into the future. Patients of SMMC benefit because this quality and necessary service will not be interrupted.
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County Counsel and Risk Management have reviewed and approved this Agreement.
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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.
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FISCAL IMPACT:
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The term of the Agreement is one year, August 1, 2007 through July 31, 2008. The maximum amount of the Agreement is $120,500 which represents a $45,500 (61%) increase over the prior contract. Of this amount, $21,465 (29%) is due to an 18% increase in surgical services over the past two years with similar growth anticipated through the contract year. In addition, rates have not been increased since 2004, so cost of living adjustments of 3.5% per annum have been factored in for the past three years and next year, resulting in an increase of $11,018. . Finally, now that the Agreement has been separated from PPMG, overhead that was spread among a larger pool of customers must be absorbed by the Medical Center. This represents the balance of the increase of $13,017 (18%).
SMMC has thoroughly researched the histology market and found that this Agreement reflects an appropriate contract rate. The reorganization of the laboratory at SMMC will offset this increase. Funds to pay for these services are included in SMMC’s FY2007-08 Adopted Budget and funds are included in the Proposed Budget for FY2008-09.
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