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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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April 6, 2011
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BOARD MEETING DATE:
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April 26, 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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Issuance of Purchase Orders to QS/1 Data Systems
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RECOMMENDATION:
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Adopt a Resolution waiving the Request for Proposals process and authorizing the County Purchasing Agent to issue Purchase Orders to QS/1 Data Systems to provide proprietary licensed software, maintenance, upgrades and support for the term of July 1, 2010 through June 30, 2012, for a maximum obligation of $150,000.
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BACKGROUND:
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In January 2010 San Mateo Medical Center (SMMC) Pharmacy began evaluating potential systems to replace the outpatient retail pharmacy computer system. In December 2010 SMMC Pharmacy purchased the NRx computer system from QS/1 Data Systems (QS/1) to replace the product for primary care patients.
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After the initial purchase, a survey conducted by the California Department of Public Health (CDPH) determined that SMMC was not in compliance with Section 70265 of Title 22 of the California Code of Regulations (Title 22) because the hospital pharmacy did not have overall responsibility for pharmaceutical services at Burlingame Long-Term Care and San Mateo Medical Center Long-Term Care. Title 22 requires SMMC Pharmacy to fill prescriptions, over-the-counter medications, and IV sterile products for the residents of these long-term care facilities. CDPH accepted SMMC’s Plan of Correction in December 2010 and its commitment to assume the responsibility on or before July 1, 2011.
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DISCUSSION:
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The County Purchasing Agent is authorized to pay for goods up to $100,000 without initiating a Request for Proposals. The NRx system from QS/1 Data Systems was purchased and installed in December 2010 for a total cost of $98,800. Because SMMC is now required by CDPH to assume pharmacy services for its long-term care facilities, SMMC must upgrade the primary care product to include the long-term care facilities. It is in the best interest of the County to purchase the upgrade from QS/1 that is designed to work with the software installed in December 2010. The total cost of this upgrade exceeds $100,000 and requires your Board’s approval.
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County Counsel has reviewed and approved the Resolution as to form.
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Approval of this Resolution contributes to the Shared Vision 2025 outcome of a Healthy Community by ensuring compliance with Title 22 and SMMC’s Plan of Correction by permitting SMMC to assume overall responsibility for pharmaceutical services at its long-term care facilities. It is anticipated that outpatient prescriptions filled by the pharmacy will increase to 198,000 annually.
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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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Outpatient prescriptions filled by the pharmacy
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168,500
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198,000
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FISCAL IMPACT:
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The term of the Agreement is July 1, 2010 through June 30, 2012. The maximum fiscal obligation is $150,000. Funds in the amount of $130,000 are included in the SMMC Adopted FY 2010-11 Budget. Funds in the amount of $20,000 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 are covered by the County’s General Fund contribution to SMMC.
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