COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

December 5, 2008

BOARD MEETING DATE:

January 6, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

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

SUBJECT:

Agreement with Blood Centers of the Pacific

RECOMMENDATION:

Adopt a resolution:

A.

Waiving the Request for Proposal (RFP) process

B.

Authorizing the execution of an Agreement with Blood Centers of the Pacific to provide blood and blood products to San Mateo Medical Center (SMMC) for the term January 1, 2009 to December 31, 2009, in an amount not to exceed $712,100; and

C.

Authorizing the Chief Executive Officer (CEO) of SMMC 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

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 blood, blood components, and blood derivatives to county patients at SMMC.

Performance Measure(s):

Measure

FY 2008

Actual

FY 2009

Projected

Number of units of blood products used

2676

2676

BACKGROUND:

Since 2003, Request for Proposals issued by SMMC for blood and blood services have been sent to the only three local providers of blood and blood services. Two of the providers, American Red Cross and Stanford Medical School Blood Center, continue to decline to provide these services. Another inquiry for possible providers of this service was conducted by the SMMC Laboratory Director in November 2008 with no success. Blood Centers of the Pacific continues to be the only provider capable of fulfilling and willing to meet SMMC’s needs.

DISCUSSION:

Blood Centers of the Pacific has been providing services to SMMC since 1989. The maximum amount on the previous Agreement with Blood Center of the Pacific was $671,748 for one year. Evolving technology and frequent modifications to FDA requirements affect the costs incurred in producing a safer product. Due to these rapidly changing requirements, and the consequent effect on rates, Blood Centers of the Pacific will only enter into one-year agreements.

In November 2008, Blood Centers of the Pacific gave notice that rates will increase by 6% due to additional testing required to ensure the safety of blood products and to rising cost of transportation fees. In an effort to maintain costs near the previous year’s level, blood product usage and ordering practices continue to be monitored for better utilization.

The Health System Redesign Initiative Team has reviewed and approved this Agreement. 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. County Counsel and Risk Management have reviewed and approved the 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.

County Counsel and Risk Management have reviewed and approved this Agreement.

FISCAL IMPACT:

The term of the Agreement is one year, January 1, 2009 through December 31, 2009. The maximum amount of the previous Agreement was $671,748. The maximum amount of the new Agreement is $712,100 which is an increase of 6%over the previous Agreement. Funds to pay for these services are included in San Mateo Medical Center’s FY2008-09 Adopted Budget and funds will be included in the budget request for FY2009-10.