COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

 

DATE:

December 15, 2009

BOARD MEETING DATE:

February 23, 2010

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 to the Agreement with Blood Centers of the Pacific

 

RECOMMENDATION:

Adopt a Resolution authorizing the President of the Board to execute an Amendment to the Agreement with Blood Centers of the Pacific increasing the maximum amount payable by $712,100 to $1,424,200, extending the term of the Agreement by one year for the term January 1, 2009 through December 31, 2010, and instituting a quarterly rebate system.

 

BACKGROUND:

On January 6, 2009, your Board approved an Agreement with Blood Centers of the Pacific (Blood Centers) to provide blood and blood products to San Mateo Medical Center (SMMC). The term of the Agreement was January 1, 2009 through December 31, 2009 with a maximum amount of $712,100.

Since 2003 Request for Proposals (RFP) 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 continues to be the only provider capable of fulfilling and willing to meet SMMC’s needs.

 

DISCUSSION:

Blood Centers has been providing services to SMMC since 1989. 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 previously agreed to only enter into one-year agreements. SMMC has negotiated a one-year extension at the same rates, including a quarterly rebate. The rebates are based on one years past payments as compared to current pricing and will continue through the end of the contract period.

 

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 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 has reviewed and approved this Amendment and Resolution as to form.

 

Delay in the submission of this Amendment to the Board is a result of the failure of the vendor to return the signed Amendment in a timely manner.

 

Approval of this Agreement contributes to the Shared Vision 2025 outcome of a healthy community by providing blood, blood components, and blood derivatives to patients at SMMC. To meet the needs of specific patient care treatment plans, blood and blood components are necessary and must be available in order to comply with the Joint Commission Patient Care Standards. It is anticipated that all patient blood need orders will be completed in a timely manner and accurately filled.

 

Performance Measures:

Measure

FY 2009-10
Actual

FY 2010-11
Projected

San Mateo Medical Center patient blood need orders are completed and accurately filled

100%

100%

 

FISCAL IMPACT:

The Amendment increases the maximum amount of the Agreement by $712,100 to $1,424,200 and extends the term of the Agreement by one year, to December 31, 2010. The Amendment also modifies Exhibit B to include a quarterly rebate which is retroactive to June 2009. Funds to pay for these services are included in San Mateo Medical Center’s FY 2009-10 Adopted Budget and funds will be included in the budget request for FY 2010-11.

 

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 General Fund contribution to SMMC.