Inter-Departmental Correspondence

Health System



October 5, 2009


November 10, 2009







Honorable Board of Supervisors


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


Agreement with Peninsula Surgical Specialists Medical Group, Inc.



Adopt a Resolution:


Authorizing the President of the Board to execute an Agreement with Peninsula Surgical Specialists Medical Group, Inc. to provide general, thoracic and vascular surgery services for the term July 1, 2009 through June 30, 2011, in an amount not to exceed $2,613,280; and



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.



San Mateo County is responsible for providing necessary medical care to its medically indigent population. This care includes general, thoracic, and vascular surgery, and the management and supervision of those services. Peninsula Surgical Specialists Medical Group, Inc. (PSS) provides surgery services for the patients of San Mateo Medical Center (SMMC).



PSS has provided surgery services at SMMC for the past four years. PSS will continue to provide the same level of services as in the previous Agreement covering this four year term. However, due to effective negotiations, the County will pay $40,861 less per year for these services. Surgery services are provided under the direction of the Chief Medical Officer of SMMC and the Chief of Surgery.


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


The late submission of this Agreement to the Board is a result of the prolonged negotiation process.


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.


Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing surgical services to the patients of SMMC. It is anticipated that 100% of physician surveys will provide an overall quality rating of 4 or higher on a 5 point scale. A rating of 4 or more is an indicator of the highest quality patient care and meets Joint Commission of American Hospital guidelines for accreditation.


Performance Measures:


FY 2008-09

FY 2009-10

Percentage of physician surveys of general, thoracic, and vascular surgery services assessing communication, timeliness, and overall quality rated at levels 4 or 5 on a 5 point scale





The term of the Agreement is July 1, 2009 through June 30, 2011. The maximum amount of the Agreement is $2,613,280. As noted, this contract for surgery services is $40,861 less per year than the prior contract due to effective negotiations. Funds in the Amount of $1,306,640 to pay for these services are included in the SMMC FY 2009-10 Adopted Budget and will be included in the SMMC FY 2010-11 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.