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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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September 19, 2008
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BOARD MEETING DATE:
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October 7, 2008
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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, M.D., Chief Executive Officer,
San Mateo Medical Center
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SUBJECT:
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Agreement with Alliance Imaging
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RECOMMENDATION:
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Approve a resolution:
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A)
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Authorizing the President of the Board to execute an Agreement with Alliance Imaging to provide magnetic resonance imaging (MRI) services for the San Mateo Medical Center for the term April 15, 2008 to April 14, 2011, in an amount not to exceed $1,575,000
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B)
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Authorizing the Chief Executive Officer (CEO) of San Mateo Medical Center or the CEO'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
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government and ensuring basic health and safety for all.
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Goals 5 and 20: Residents have access to healthcare and preventive care and Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
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This contract will aid San Mateo Medical Center (SMMC) in addressing the need to provide timely access to essential services while concurrently reducing the expense and enhancing revenue by providing imaging services.
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Performance Measure(s):
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Measure
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FY 2007-08
Actual
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FY 2008-09
Projected
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FY 2009-10
Projected
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Compliance with Joint Commission Standards of Care and Quality
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100%
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100%
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100%
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Technologist productivity rate of 9 scans per day
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90%
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90%
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90%
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BACKGROUND:
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MRI Scans are one of SMMC’s most costly and highest volume outsourced services. However, by having mobile MRI services on-site, SMMC would reduce overall costs of providing the service (including labor and equipment), enhance patient care by providing increased access, improve physician satisfaction and generate new revenue. A Request for Proposals for MRI Services was issued in January 2008. SMMC staff recommends that Alliance Imaging be awarded a contract based on cost, compliance with Joint Commission standards, proposed system's ability to integrate with the SMMC's existing systems, and flexible scheduling.
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DISCUSSION:
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Alliance Imaging would provide on-site Mobile MRI services (including equipment and technician) on a fee per ten-hour-day basis, 3 days per week, for a three year term. Having on-site services would improve the quality of, and access to, health care, reduce costs, generate new revenue, and improve physician satisfaction.
MRI generated approximately $2.8 million dollars in revenue in FY 07-08. On site MRI reduced the need for patients to be transported to outside facilities. MRI services are a critical component of the effective diagnosis and treatment of SMMC patients. Cost effective management of MRI services allows for increased access and less invasive healthcare.
The delay in submitting this Agreement to the board was due to the extensive negotiations required between our County Counsel and their Corporate Counsel to resolve several contractual issues. County Counsel and Risk Management have 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.
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FISCAL IMPACT:
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The term of the agreement is from April 15, 2008 to April 14, 2011. The maximum amount of the Agreement is $1,575,000. The previous contract with Alliance was 54 months at a total cost of $2,550,000. This contract represents a savings of $125,001 or 7.35% over the life of the contract. Funds are included in SMMC’s FY2008-09 tentatively Adopted Budget and will be included in future budget requests.
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