Title
a. Authorize the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) or a designee to execute the First Amendment to the Professional and Call Coverage Services Agreement with AG Infectious Diseases, A Medical Corporation to provide infectious disease services extending the term by twenty-four months (October 1, 2026 to September 30, 2028) for a revised full agreement term of January 23, 2025 to September 30, 2028, and adding $500,000 for a revised total not to exceed amount of $700,000 in the aggregate; and
b. Authorize the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) or a designee to sign up to three future amendments to this Agreement where the total amendments do not significantly change the scope of work, do not cause an increase of more than 10% ($20,000) of the original contract amount and do not increase the total contract amount above $720,000.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) or a designee to execute the First Amendment to the Professional and Call Coverage Services Agreement with AG Infectious Diseases, A Medical Corporation to provide infectious disease services extending the term by twenty-four months (October 1, 2026 to September 30, 2028) for a revised full agreement term of January 23, 2025 to September 30, 2028, and adding $500,000 for a revised total not to exceed amount of $700,000 in the aggregate; and
b. Authorize the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) or a designee to sign up to three future amendments to this Agreement where the total amendments do not significantly change the scope of work, do not cause an increase of more than 10% ($20,000) of the original contract amount and do not increase the total contract amount above $720,000.
SUMMARY:
Natividad Medical Center (NMC) must arrange for care and treatment of hospitalized patients as well as patients who present to the emergency department in need of medical care in the specialty of infectious diseases, which focuses on the diagnosis, treatment, and prevention of infections. NMC maintains an agreement with AG Infectious Diseases, A Medical Corporation through which Aric Gregson, M.D., a board-certified physician, provides infectious disease call coverage.
DISCUSSION:
NMC seeks to amend the agreement to ensure Dr. Gregson can continue providing these services without interruption. AG Infectious Diseases, A Medical Corporation is compensated at a contracted rate for services rendered under the agreement. While service volumes may fluctuate based on coverage demands, the contracted rate remains unchanged. NMC has obtained an independent fair market value opinion supporting the payment terms of the agreement.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this amendment as to legal form. Auditor-Controller has reviewed and approved this amendment as to fiscal provisions. The amendment has also been reviewed and approved by Natividad Medical Center’s Finance Committee and Board of Trustees.
FINANCING:
The cost of this Amendment is $500,000. The total cost of this Agreement is $700,000 for the period January 23, 2025 to September 30, 2028. The actual cost is contingent upon Dr. Gregson’s participation in the call panel which may fluctuate based on their availability. Natividad has agreements with multiple providers to ensure sufficient coverage of the services where the total expenditure will not exceed $262,800 annually which is included in Fiscal Year 2025/2026 Adopted Budget. Funding will be provided from NMC's Enterprise Fund 451-9600-6608.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The services rendered in this agreement provide NMC with the additional support it needs in order to provide reliable and high-quality patient care which improves the health and quality of life for patients and their families.
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Administration
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Prepared by: Jeanne-Ann Balza, Director of Physician Services, 783.2506
Approved by: Charles R. Harris, Chief Executive Officer, 783.2551
Attachments:
First Amendment
Agreement
Attachments on File at the Clerk of the Board