Inter-Departmental Correspondence

Health System



December 15, 2010


January 25, 2011







Honorable Board of Supervisors


Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Chief Executive Officer
San Mateo Medical Center


Amendment No. 1 to the Agreement with Histo-Tech Laboratory



Adopt a Resolution authorizing the President of the Board to execute Amendment No. 1 to the Agreement with Histo-Tech Laboratory to provide anatomic pathology slide preparation and histology services, extending the term by one year, for a new term of January 1, 2009 through December 31, 2011, and increasing the funding by $216,000, for a new maximum fiscal obligation of $648,000.



On May 19, 2009, your Board approved an Agreement with Histo-Tech Laboratory to provide histology services. Services included processing of patient tissue specimens removed during surgery and examined microscopically to complete a diagnosis. There are several specialized steps in preparing the tissues: processing, embedding (preparation of the block), sectioning and staining in anatomic slide preparation. This process is part of the histology services for surgical and biopsy procedures performed at San Mateo Medical Center (SMMC). The term of the Agreement was January 1, 2009 through December 31, 2010, with a maximum amount of $432,000.



SMMC continues to have a critical need for histology services to process tissue specimens and prepare them for staining to provide the doctors with the information needed to accurately diagnosis the conditions of surgery patients.


Extending the Agreement for one year will give SMMC the time to explore other options for these services, identify new vendors, and develop a comprehensive RFP. Increasing the maximum amount of the Agreement will cover the cost of the contract for the one-year extension.


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.


Approval of this Amendment, contributes to the Shared Vision 2025 outcome of a Healthy Community by providing pathology slide preparation for the diagnosis and treatment of disease. To meet the needs of specific patient care treatment plans, diagnosis and treatment of disease go hand in hand with pathology and histology services. It is anticipated that pathology blocks and slides will be returned to the lab for analysis within 48 hours from time of pick up 100% of the time. This will benefit SMMC patients by allowing doctors to accurately diagnosis the patients’ condition and speed recovery.


Performance Measure:


FY 2009-10

FY 2010-11

Pathology blocks and slides will be returned to the lab for analysis within 48 hours from time of pick up.





The Amendment extends the term from January 1, 2009 through December 31, 2011. The amount of the Agreement is increased by $216,000 to a new maximum amount of $648,000. Funds to pay for these services are included in SMMC’s FY 2010-11 Adopted Budget and funds will be included in the FY 2011-12 Recommended Budget.


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.