AMENDMENT NO. 3 TO AGREEMENT

BETWEEN THE COUNTY OF SAN MATEO AND
HEALTHCARE COST SOLUTIONS, INC.

THIS AMENDMENT TO THE AGREEMENT, entered into this _____ day of _______________, 20_____, by and between the COUNTY OF SAN MATEO, hereinafter called "County," and Healthcare Cost Solutions, Inc., hereinafter called "Contractor";

W I T N E S S E T H:

WHEREAS, pursuant to Government Code, Section 31000, County may contract with independent contractors for the furnishing of such services to or for County or any Department thereof;

WHEREAS, the parties entered into an Agreement for providing coding and diagnosis-related group validation audits for San Mateo Medical Center services on March 1, 2009; and

WHEREAS, the Agreement was subsequently amended by a change order on September 24, 2009, to replace “Amount and Method of Payment” on Exhibit A and against by a change order on or around February 28, 2010, to extend the term of the Agreement through February 28, 2011; and

WHEREAS, the parties now wish to amend the Agreement by increasing the maximum amount of the Agreement by $50,000.

NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES HERETO AS FOLLOWS:

1.

Paragraph 3, “Payments,” is amended to read as follows:

3. Payments In consideration of the services rendered in accordance with all terms, conditions and specifications set forth herein and any Exhibit(s) or attachment(s) attached hereto, County shall make payment to Contractor in the manner specified herein and in Exhibit "A". In the event that the County makes any advance payments, Contractor agrees to refund any amounts in excess of the amount owed by the County at the time of contract termination. The County reserves the right to withhold payment if the County determines that the quantity or quality of the work performed is unacceptable. In no event shall total payment for services under this Agreement exceed ONE-HUNDRED FIFTY THOUSAND DOLLARS ($150,000).

2.

Sectioin VI of Exhibit A to the Agreement is amended to read as follows:

The term of this agreement is March 1, 2009, to February 28, 2011. Total payment for services (including out-of-pocket expenses not to exceed $2,530) provided under this agreement will not exceed $150,000. Invoices will be submitted upon completion of each review. Invoices will be approved by the Compliance Officer and paid within 30 days of receipt of invoice.

3.

All other terms and conditions of the agreement dated February 18, 2009, between the County and Contractor, as previously amended, shall remain in full force and effect.