COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

DATE:

October 5, 2009

BOARD MEETING DATE:

December 15, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

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

SUBJECT:

Amendment #1 to the Purchase Order with GE Healthcare Technologies

RECOMMENDATION:

Adopt a Resolution:

A.

Authorizing an increase of $7,000.00 in the amount approved for the purchase of a 64 slice CT Scanner for an amount not to exceed $929,000; and

B.

Authorizing an extension in the term of the purchase order through December 31, 2009; and

C.

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 terms and/or services so long as the term or services is/are within the current or revised fiscal provisions

BACKGROUND:

On April 8, 2008, your Board approved Resolution 069354 which authorized the purchase and installation of a 64 Slice CT Scanner. Structural modifications to the department were required to accommodate the new CT SCAN instrument and these modifications required state permits. This process lasted for six months, rather than the usual thirty days.

DISCUSSION:

Between the date of approval and the delivery date of the equipment post site-renovation, the sales tax rate applicable to this purchase increased by 1%, causing a shortfall in the approved amount of the equipment total purchase price. An additional $7,000 is needed to pay the sales tax. This Amendment also extends the term of the purchase order by five months to a new end date of December 31, 2009 because the project was completed after the end date stated on the purchase order. County Counsel has reviewed and approved this Resolution.
Approval of this Amendment contributes to the shared vision 2025 outcome of a Healthy Community by providing a more detailed diagnostic tool to physicians resulting in faster and more accurate diagnoses. Utilizing this new technology will insure the 97% equipment up time for CT services. And with the increased speed and accuracy of images generated, the 40% reduction in turn around time will be achieved.

Performance Measures:

Measure

FY 2008-09
Actual

FY 2009-10
Projected

97% Uptime for CT Services

100%

100%

Reduction in turn-around time for performing CT scans

40%

40%

FISCAL IMPACT:

Funds for this project come entirely from Grants totaling $1,785,652 ($785,652 from Health Resources and Services Administration, Health and Human Services; and $1,000,000 from the San Mateo County Health Foundation). As there will be surplus funds remaining in the installation portion of this project, there are no additional funds needed to meet the increased tax amount for this purchase. There is no net County cost associated with this amendment. Expenses at SMMC are covered by fee for services or third-party payers 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.