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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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September 3, 2010
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BOARD MEETING DATE:
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September 28, 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
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Louise Rogers, Director, Behavioral Health & Recovery Services
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Nomalee Tilman, Director, Correctional Health Services
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SUBJECT:
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Agreement with Laboratory Corporation of America
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RECOMMENDATION:
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Adopt a Resolution authorizing the:
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A)
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President of the Board to execute an Agreement with Laboratory Corporation of America for the provision of clinical laboratory services for the term July 1, 2010 through June 30, 2013, for a maximum obligation of $915,000; and
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B)
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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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In January 2009 the Health System released a Request for Proposal (RFP) for clinical laboratory services for Behavioral Health and Recovery Services (BHRS) and Correctional Health. Laboratory Corporation of America (LabCorp) was not selected for the provision of these services, but agreed to continue to provide these services until an agreement with our new provider was in place. On September 29, 2009, your Board approved a First Amendment to the Agreement with LabCorp to extend the term through January 31, 2010, and to increase the maximum obligation to $332,500, to allow for the continuity of services while an agreement with the new provider was being negotiated. Subsequently, BHRS and Correctional Health re-evaluated the RFP proposals and changed their selection to LabCorp.
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On February 8, 2010, the Chief of the Health System approved a Second Amendment to the Agreement to extend the term through February 28, 2010, and to increase the maximum obligation to $357,500.
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On March 5, 2010, the Director of BHRS approved an Agreement with LabCorp for the term March 1, 2010 through April 30, 2010, for a maximum obligation of $25,000 to allow for the continuity of services while the agreement was negotiated.
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On May 27, 2010, the County Manager approved a First Amendment to the Agreement with LabCorp extending the term through June 30, 2010, and to increase the maximum obligation to $100,000.
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DISCUSSION:
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The Agreement with LabCorp is for the provision of clinical laboratory services for clients of BHRS and Correctional Health Services. LabCorp shall also provide specimen transport services and phlebotomy services for both BHRS and Correctional Health.
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An extensive, complicated negotiation process between LabCorp and BHRS contributed to the delay in the completion of this Agreement.
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The Contractor’s insurance has been reviewed and approved by Risk Management, and the Resolution and Agreement have been reviewed and approved by County Counsel. 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. This Agreement is on the Continuing Resolution.
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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing clinical laboratory services for clients of BHRS and Correctional Health Services. The timely provision of billing files for BHRS enables maximum reimbursement from the State. The timely provision of test results for Correctional Health contributes to improved client health outcomes. It is anticipated that 92% of monthly electronic tape billing files will be delivered within 90 days of the month end.
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Performance Measure:
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Measure
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FY 2009-10
Actual
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BHRS: Monthly electronic tape billing files delivered within ninety (90) days of the end of month.
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100% *
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Correctional Health: Results of routine tests with a 24-hour turn-around result time provided on time.
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97%*
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* BHRS FY 2009-10 data demonstrates exceptional performance beyond the program target. Correctional Health data reflects change in procedures that resulted in a quicker turn around time for test results.
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FISCAL IMPACT:
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The term of the Agreement is July 1, 2010 through June 30, 2013. The maximum obligation for this Agreement is $915,000. Of that amount, the maximum for BHRS is $555,000 and the maximum for Correctional Health Services is $360,000. For FY 2010-11 the maximum obligation is $305,000. These funds are included in the Health System’s tentatively Adopted FY 2010-11 Budget for each division. For BHRS 69% or $127,650 will be funded by Medi-Cal Federal Financial Participation, and $57,350 is Net County Cost. Funding for Correctional Health is 100% Net County Cost. Similar arrangements will be in place for FY 2011-12 and 2012-13.
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