Inter-Departmental Correspondence

Health System



April 29, 2011


May 24, 2011







Honorable Board of Supervisors


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


Amendment No. 2 to Agreement with PharMerica



Adopt a Resolution authorizing the President of the Board to execute Amendment No. 2 to the Agreement with PharMerica, extending the term by six months, for a new term of July 1, 2008 through December 31, 2011, with no increase in cost.



On December 9, 2008, by Resolution 069831, your Board approved an Agreement with PharMerica to provide pharmaceutical and infusion services to patients of San Mateo Medical Center (SMMC) Long Term Care (LTC) services at both the Main Campus and Burlingame Long Term Care (BLTC) for the term of July 1, 2008 through June 30, 2010, at an amount not to exceed $958,667. On July 27, 2010, your Board approved Amendment No. 1 by Resolution 070952 to continue to provide pharmacy services while SMMC developed a transition plan to provide in-house pharmacy services by extending the term to June 30, 2011, and increasing the amount to a maximum fiscal obligation of $1,438,001.



SMMC is extending the term of the Agreement from June 30, 2011, to a new term of December 31, 2011. The extension of this Agreement will allow continuation of critical pharmacy services for BLTC while continuing to finalize implementation of the in-house pharmacy program. In order to be in compliance with State regulation a licensed pharmacist must have oversight of the delivery of medications to LTC residents. This contract extension will allow the current PharMerica licensed Pharmacist to continue in this role until SMMC/BLTC can hire a licensed Pharmacist to meet the regulatory compliance. 


This amendment will make the total term of the Agreement three years, six months. The County Manager has approved SMMC’s request to extend the Agreement beyond three years to help SMMC ensure a smooth transition from PharMerica to the in-house pharmacy program.


The Amendment and Resolution have been reviewed and approved by County Counsel. 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.


The Amendment contributes to the Shared Vision 2025 outcome of a Healthy Community by ensuring the continued provision of pharmaceutical services to the patients of SMMC LTC services. It is anticipated that 100% of all prescription medications will be delivered to patients of LTC services within eight hours of receipt of the order.


Performance Measure:


FY 2009-10

FY 2010-11

Percentage of prescriptions delivered to LTC patients within 8 hours of receipt order





The term of the Agreement is July 1, 2008 through December 31, 2011. The maximum fiscal obligation is $1,438,001. Funds in the amount of $479,334 are included in the SMMC FY 2010-11 Adopted Budget and funds in the amount of $114,000 will be included in SMMC’s 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’s General Fund contribution to SMMC.