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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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February 24, 2011
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BOARD MEETING DATE:
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March 29, 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 to the Agreement with Peninsula Surgical Specialists Medical Group, Inc. and Assignment and Assumption Agreement and Consent to Assignment
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RECOMMENDATION:
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Resolution authorizing the:
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A)
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President of the Board of Supervisors to execute an Amendment to the Agreement with Peninsula Surgical Specialists Medical Group, Inc. for the provision of general and vascular surgical services, reducing the scope of work, decreasing the amount by $59,919 to $2,553,361; and
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B)
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Consent to Assignment of the amended Agreement to Palo Alto Medical Foundation for Healthcare, Research and Education as of April 1, 2011.
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BACKGROUND:
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On October 5, 2009, your Board authorized an Agreement with Peninsula Surgical Specialists Medical Group, Inc. (PSS) to provide general and vascular surgical services for the term July 1, 2009 through June 30, 2011, in an amount not to exceed $2,613,280.
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Dr. David Jegge, who currently provides surgical services at San Mateo Medical Center (SMMC), is not a member of PSS, but provides services as a subcontractor under the PSS contract.
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PSS anticipates being acquired by Palo Alto Medical Foundation (PAMF) on April 1, 2011. PAMF has requested that the County take contractually related actions to facilitate the acquisition of PSS by PAMF and pay Dr. Jegge directly for his services.
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DISCUSSION:
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The purpose of the Amendment is to separate the services to be provided by PSS from those provided by Dr. Jegge. A separate Agreement has been written for Dr. Jegge in order to continue his services through the end of the term of the current Agreement, which is June 30, 2011. The resulting agreement with PSS would thereafter be assigned to PAMF in connection with PAMF’s acquisition of PSS.
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The total work performed by and the total amounts paid to PSS and Dr. Jegge remain unchanged, and the term of the agreements remains the same. However, the amount of Dr. Jegge’s Agreement has been removed from the PSS Agreement. The total amount of Dr. Jegge’s Agreement is $59,919. The total amount of the PSS Agreement is reduced to an amount not to exceed $2,553,361.
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The Amendment, the Consent to Assignment 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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This Amendment and Consent to Assignment contributes to the Shared Vision 2025 outcome of a Healthy Community by providing surgical services to the patients of SMMC. It is anticipated that 100% of physician surveys will provide an overall quality rating of 4 or higher on a 5 point scale. A rating of 4 or more is an indicator of the highest quality patient care and meets Joint Commission of American Hospital guidelines for accreditation.
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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 physician surveys of general, thoracic, and vascular surgery services assessing communication, timeliness, and overall quality rated at levels 4 or 5 on a 5 point scale
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100%
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100%
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FISCAL IMPACT:
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The term of the original Agreement is July 1, 2009 through June 30, 2011 for a maximum fiscal obligation of $2,553,361. Funds in the amount of $1,066,963 are included in the SMMC FY 2010-11 Adopted 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 are covered by the County’s General Fund contribution to SMMC.
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