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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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November 2, 2010
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BOARD MEETING DATE:
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December 7, 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 Stryker Orthopaedics
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RECOMMENDATION:
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Adopt a Resolution:
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A)
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Waiving the Request for Proposal process and authorizing the President of the Board to execute an agreement with Stryker Orthopaedics to provide orthopedic products on consignment in such quantities as agreed upon by County and Contractor for the term September 1, 2010 through August 31, 2013, for a maximum obligation of $1,500,000; and
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B)
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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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Orthopedic implant products- replacement hips and knees- are one of San Mateo Medical Center (SMMC)’s more costly and high volume expenses. SMMC is currently has a vendor agreement with an Amerinet vendor, Smith and Nephew, and at present there is a need to contract with Stryker. Smith and Nephew, Inc. provides a lower impact knee used more for the less active patient while Stryker provides a more resilient product for the athletic and active patients. Both companies are necessary for the complete orthopedic program.
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DISCUSSION:
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Stryker Orthopaedics is the industry leader in the manufacture of orthopedic reconstructive products. The Agreement with Stryker Orthopaedics allows SMMC to have an inventory of reconstructive implants available on consignment. The agreement also allows SMMC access to current and maintained instrumentation at no additional cost to SMMC. Having these products available on consignment including access to instrumentation required for the surgical procedures will reduce costs, improve physician satisfaction, and enhance patient care by providing instant access and choice of products.
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SMMC is requesting a waiver of the Request for Proposals (RFP) requirement for this Agreement due to the fact that SMMC is currently contracted with the other provider of orthopedic replacement implants. Contracting with both hip and knee providers gives SMMC the security of access to all available orthopedic options needed for patient care. Also, this contract supports having the right product available for the lifestyle demands of the orthopedic patient.
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County Counsel has reviewed and approved the Agreement and Resolution as to form. The Contractor’s insurance has been reviewed and approved by Risk Management.
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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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The Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing patients with timely access to products for orthopedic procedures while reducing the expense of providing these products to SMMC patients. It is anticipated that 100% of all deliveries of service and/or orthopedic products will be accomplished at least 12 hours prior to surgery which is essential to the maintenance of the highest standards of quality patient care.
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Performance Measure:
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Measure
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FY 2009-10
Actual
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FY 2010-11
Projected
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Percentage of delivery of services and/or orthopedic products at least 12 hours prior to surgery
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100%
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100%
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FISCAL IMPACT:
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The term of this Agreement is September 1, 2010 through August 31, 2013. The maximum fiscal obligation is $1,500,000. Funds in the amount of $417,000 are included in the SMMC FY 2010-11 Adopted Budget. Funds in the amount of $500,000 will be included in the SMMC FY 2011-12 Recommended Budget. Similar arrangements will be place for FY 2012-13.
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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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