CareAdvantage

HOSPITAL SERVICE AGREEMENT ADDENDUM

Amendment 2010-01 (Amendment No. 1)

This Agreement is made this 1st day of January 2011, by and between the San Mateo Health Commission, d.b.a. Health Plan of San Mateo, a public entity, hereinafter referred to as “PLAN” and San Mateo Medical Center, a hospital, herein referred to as “HOSPITAL”.

RECITALS

WHEREAS, PLAN and HOSPITAL have previously entered into the CareAdvantage Hospital Service Agreement (the Agreement) effective January 1, 2009;

WHEREAS, Article XIV.14.10 of Agreement provides for the amending of such Agreement;

WHEREAS, PLAN and HOSPITAL and the County Mental Health Department have participated in the Psychiatry and Long Term Care Workgroup of the Healthcare Redesign Project;

WHEREAS, the Psychiatry and Long Term Care Workgroup agreed that a Memorandum of Understanding (MOU) be established between all parties involved; and

WHEREAS, the MOU states PLAN shall reimburse HOSPITAL at a per diem rate equal to the rate established by County Mental Health;

NOW, THERFORE, PLAN and HOSPITAL hereby agree as follows:

Attachment A: Payment for Hospital Services

The Paragraph titled “Inpatient Mental Health Services” of Attachment A is amended to read as follows:

“Inpatient Mental Health Services will be reimbursed at an all inclusive per diem rate of $1172.71 per acute day. This rate will be considered payment in full from PLAN to FACILITY, and the Member will not be responsible for any deductible, copay, or coinsurance amounts. Payment may not be made for more than a total of 190 days of inpatient psychiatric hospital services during the PLAN member’s lifetime. Professional services will be billed directly to San Mateo County Mental Health Services.”

Waive 45 Day Provision

By signing this Amendment, both parties mutually agree to waive the 45 business day notice requirement for this contract amendment, as provided for in Section 1375.7 of the California Health and Safety Code.

Effective Date

This Amendment shall be effective January 1, 2011.

Incorporation of Agreement Rights, Duties, and Obligations

All other terms and provisions of said Agreements shall remain in full force and effect so that all rights, duties and obligations, and liabilities of the parties hereto otherwise remain unchanged.