COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

 

DATE:

March 13, 2009

BOARD MEETING DATE:

May 19, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Interim Chief Executive Officer,
San Mateo Medical Center

SUBJECT:

Agreement with Histo-Tec Laboratory

 

RECOMMENDATION:

Adopt a Resolution:

1.

Waiving the Request for Proposals (RFP) process; and

 

2.

Authorizing the President of the Board to execute an Agreement with Histo-Tec Laboratory 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 January 1, 2009 through December 31, 2010, in an amount not to exceed $432,000; and

 

3.

Authorizing the Chief of the Health System 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.

 

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 pathology slide preparation for the diagnosis and treatment of disease.

 

Performance Measure:

Measure

FY 2008-09
Projected

FY 2009-10
Projected

Blocks and slides are returned to the lab for analysis within 48 hours from time of pick up.

100%

100%

 

BACKGROUND:

Patient tissue specimens removed during 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.

 

A Request for Proposals (RFP) was recently issued for the provision of these services. Of those agencies responding, only two (Peninsula Pathologist Medical Group and Cureline-Biopathology) were capable of providing all of the required services within the time restraints required. However, negotiations were not successful.

 

DISCUSSION:

The Laboratory Director at San Mateo Medical Center (SMMC) began an independent search and identified Histo-Tec Laboratory (Histo-Tec) as a viable provider of the histology services required although they declined to participate in the RFP. Since January 1, 2009, Histo-Tec has met SMMC’s needs at an acceptable cost while ensuring uninterrupted service. The required histology services include anatomic pathology slide preparation and all related services for surgical and biopsy procedures performed at SMMC and affiliated clinics.

 

The Health System is currently exploring partnerships with hospitals and providers in San Mateo County, to provide services on behalf of and at SMMC through its Community Health Network for the Underserved. This may include histology services. This agreement will be terminated should the Health System find a better solution prior to the expiration of the term of this Agreement.

 

A waiver of the RFP process was approved by the County Manager on March 24, 2009.

 

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.

 

FISCAL IMPACT:

The term of the Agreement is January 1, 2009 through December 31, 2010. The maximum amount of the Agreement is $432,000. Funds are included in the SMMC FY 2008-09 Adopted Budget and in the SMMC FY 2009-10 Recommended Budget. Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care are covered by the County’s General Fund contribution to SMMC.

Exhibit A
Request for Proposals Matrix

1.

General Description of RFP

Preparation of pathology slides for tissue specimens using good quality guidelines and involved in a proven quality control system.

2.

List key evaluation criteria

    • Turn around time

    • Quality Control documentation

    • Ability to pick up specimens and deliver slides in a timely manner

    • Cost

3.

Where advertised

Not advertised. There are only six businesses in the Bay Area that provide this service and RFPs were sent to all six

4.

In addition to any advertisement, list others to whom RFP was sent

Histo-Tech
Peninsula Histopathology Lab, Inc.
Peninsula Pathologists Medical Group
Cureline Biopathology
Associated Pathologists Medical Group
Histopathology Reference Laboratory

5.

Total number sent to prospective proposers

6

6.

Number of proposals received

2

7.

Who evaluated the proposals

RFP Evaluation Team consisting of Director of Materials Management, Interim Laboratory Manager and a Pathologist

8.

In alphabetical order, names of proposers (or finalists, if applicable) and location

Associated Pathologists Medical Group
105A Cooper Court
Los Gatos, CA 95032

Cureline Biopathology
1849 Bayshore Highway, Suite 280
Burlingame, CA 94010

Histopathology Reference Laboratory
710 Alfred Nobel Drive
Hercules, CA 94547

Histo-Tech
2829 Depot Rd., #4
Hayward, CA 94545

Peninsula Histopathology Lab, Inc.
160 Albright Way
Los Altos, CA

Peninsula Pathologists Medical Group
393 E. Grand Avenue, Suite I
South San Francisco, CA 94080