COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

April 8, 2008

BOARD MEETING DATE:

May 20, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

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

SUBJECT:

Amendment to the Agreement with HFS Consultants

 

RECOMMENDATION:

Adopt a resolution authorizing the execution of an amendment to the Agreement with HFS Consultants to provide consulting and management services for physician and payor contracting at San Mateo Medical Center extending the term of Agreement from August 1, 2007 to April 1, 2008 to August 1, 2007 to September 30, 2008 and increasing the maximum amount payable thereunder by $200,000 to $400,000.

 

VISION ALIGNMENT:

Commitment: 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 a resource for completing negotiations and contractors which in turn will allow for the payment of providers providing services to SMMC patients.

 

Performance Measure(s):

Measure

Current

Target

Percentage of payor and provider contracts renewed prior to expiration

65%

100%

 

BACKGROUND:

In January, 2007, the position of Director of Payor and Provider Contracting (DPP) was filled after being vacant for a prolonged length of time. However, due to the considerable backlog and complexity of the contracts the new Director was unable to bring the situation to a current and more workable level. In November, 2007, the DPP left the employ of San Mateo County.

 

DISCUSSION:

Contracts handled by the DPP are mainly with doctors, health plans and hospitals. Because of the sensitivity and high dollar values, it is imperative that these contracts be timely processed and maintained so that those providing necessary services to SMMC patients will continue to do so.

Since the departure of the DPP, HFS has successfully negotiated many payor and provider contracts and helped restore more amicable working relationships. Additionally, HFS has uncovered and corrected numerous errors in the calculations of Relative Value Units (RVUs) and bonuses claimed as payable by many of the providers, thereby saving the SMMC money.

This Amendment will extend the original term of August 1, 2007 to April 1, 2008 to a new term of August 1, 2007 to September 30, 2008. It will also increase the maximum amount payable by $200,000 for a new maximum amount payable not to exceed $400,000.

Given the current circumstances at SMMC, it is imperative that the services being provided by HFS continue until select key contracts are negotiated and a new DPP can be hired.

This item was reviewed by the Health System Redesign Initiative Team and aligns with the first-year implementation plan approved by the Board of Supervisors on March 25, 2008.

County Counsel has reviewed and approved this Agreement.


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.

 

FISCAL IMPACT:

The Amendment extends the term of the Agreement from August 1, 2007 to April 1, 2008 for a new term of August 1, 2007 to September 30, 2008. The Amendment also increases the maximum amount payable under the Agreement by $200,000 for a new maximum amount payable not to exceed $400,000. Funds to pay for these services are included in San Mateo Medical Center’s FY2007-08 Adopted Budget and will be included in the Recommended Budget for FY 2008-09.