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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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January 19, 2011
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BOARD MEETING DATE:
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February 15, 2011
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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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Amendment No. 2 to the Agreement with Provencio Advisory Services, Inc.
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RECOMMENDATION:
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Adopt a Resolution authorizing the President of the Board to execute Amendment No. 2 to the Agreement with Provencio Advisory Services, Inc. to provide reimbursement consulting services by extending the term by one year for a new term of March 1, 2010 through February 28, 2012, and increasing the funding by $180,000 for a new maximum fiscal obligation of $380,000.
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BACKGROUND:
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On April 13, 2010, the Board of Supervisors approved an Agreement with Provencio Advisory Services, Inc. (Provencio) to provide an interim Reimbursement Manager for San Mateo Medical Center (SMMC) for the term March 1, 2010 through February 28, 2011, for a maximum fiscal obligation of $200,000. The Agreement was subsequently amended on January 11, 2011, to expand the scope of work to support the implementation of the independent review organization (IRO) recommendations.
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DISCUSSION:
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SMMC continues to have significant changes within the Finance Department. These changes have included the placement of several new managers, including the Director of Reimbursement. While the new Director of Reimbursement works to improve the timely and accurate reporting of this department, it is imperative that the work generated by Provencio continue.
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Provencio has extensive experience in the field of healthcare consulting and finance. Specific to SMMC, Provencio has provided in-depth support on quality assurance, third party settlement, patient accounts receivables initiatives, and special projects such as constructing, documenting, and synchronizing the SMMC corrective action plan in response the IRO audit performed in July 2010.
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Extending the Agreement for one year will give SMMC time to conduct a comprehensive Request for Proposal (RFP). The RFP would include Reimbursement and Finance consulting services, including: Accounts Receivable and Patient Revenue contractual modeling; Medicare and MediCal cost report preparation and audit consulting; MediCal Waiver reporting and audit consulting; Federally Qualified Health Center (FQHC) reconciliation preparation and audit consulting; other governmental reporting support and consulting; and consulting on special projects as needed to improve processes, procedures, and best practices.
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The Amendment and Resolution have been reviewed and approved by County Counsel as to form.
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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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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing accurate reporting to government entities and estimating of the financial allowances and reserves used in support of the care-giving activities of SMMC. It is anticipated that 100% of all reports and estimates will be completed within the required reporting period.
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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 all reports and estimates completed within required reporting period
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100%
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100%
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FISCAL IMPACT:
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The Amendment extends the term by one year, for a new term of March 1, 2010, through February 28, 2012, and increases the funding by $180,000 for a maximum fiscal obligation of $380,000. $170,000 is included in SMMC FY 2010-11 Adopted Budget, and $180,000 will be included in the SMMC FY 2011-12 Recommended Budget.
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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 is covered by the County’s General Fund contribution to SMMC.
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