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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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December 22, 2009
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BOARD MEETING DATE:
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February 9, 2010
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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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Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Chief Executive Officer
San Mateo Medical Center
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SUBJECT:
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Agreement with California Advanced Imaging Medical Associates, Inc.
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RECOMMENDATION:
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Adopt a Resolution:
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1.
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Authorizing the President of the Board to execute an Agreement with California Advanced Imaging Medical Associates, Inc. to provide Radiology and other diagnostic imaging services for the term January 1, 2010 through December 31, 2012, in an amount not to exceed $6,700,000; and
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2.
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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.
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BACKGROUND:
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California Advanced Imaging Medical Associates (CAIMA) has provided management, supervision, and physician services for Radiology to the San Mateo Medical Center (SMMC) for more than fifteen years. SMMC has a continuous need for Radiology and other diagnostic imaging services. This group offers the hospital the benefits of a large practice with imaging specialization and administrative support. CAIMA is one of the few contract Radiology services on the Peninsula, and provides service to all the hospitals on the Peninsula who do not have an existing in-house Radiology staff.
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DISCUSSION:
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In May 2004 SMMC established an onsite Magnetic Resonance and Imaging (MRI) service to reduce outsourced costs. CAIMA provided the professional component of this service. County Administrative Memorandum B-1 provides that contracts for physicians are exempt from the Request For Proposals process.
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In 2009 there was a 14% increase in workload and there will be a 3.5% increase in compensation. Because of the unprecedented growth of imaging use and at the request of the SMMC, CAIMA agreed to maintain the contract at a 3.5% increase amount with an increase baseline Relative Value Unit (RVU) component over the prior contracted annual payment amount while increasing the budgeted RVUs productivity by 5,158 units annually or a 14.5% increase in workload.
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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.
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The late submission of this Agreement to the Board is a result of the prolonged negotiation process.
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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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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing radiology and other diagnostic imaging services to the patients of SMMC. It is anticipated that 100% of all imaging studies will be reviewed within 24 hours of submission.
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Performance Measure:
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Measure
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FY 2008-09
Actual
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FY 2009-10
Projected
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All imaging studies at SMMC will be reviewed by a Board Certified/Eligible Radiologist within 24 hours of the time submitted for review
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100%
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100%
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FISCAL IMPACT:
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The term of the Agreement is January 1, 2010 through December 31, 2012. The maximum amount the County shall be obligated to pay Contractor is $6,700,000. Funds in the amount of $1,027,464 are included in the SMMC FY 2009-10 Adopted Budget. Funds in the amount of $2,054,928 will be included in the SMMC FY 2010-11 Recommended Budget. Similar arrangements will be made for future budget years.
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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.
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