Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute the First Amendment to the Professional and Call Coverage Services Agreement with Advanced Gastroenterology of Monterey County to provide gastroenterology services at NMC, extending the term by twenty-four months (April 1, 2017 to March 31, 2019) for a revised full agreement term of April 1, 2015 to March 31, 2019, and adding $900,000, for a revised not to exceed amount of $1,800,000; and
b. Authorize the Deputy Purchasing Agent for NMC or his designee to sign up to three (3) future amendments to this Agreement where the total amendments do not extend the term by more than twelve (12) months, do not significantly change the scope of work, and do not cause an increase of more than ten percent 10% ($90,000) of the original contract amount per each amendment.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute the First Amendment to the Professional and Call Coverage Services Agreement with Advanced Gastroenterology of Monterey County to provide gastroenterology services at NMC, extending the term by twenty-four months (April 1, 2017 to March 31, 2019) for a revised full agreement term of April 1, 2015 to March 31, 2019, and adding $900,000, for a revised not to exceed amount of $1,800,000; and
b. Authorize the Deputy Purchasing Agent for NMC or his designee to sign up to three (3) future amendments to this Agreement where the total amendments do not extend the term by more than twelve (12) months, do not significantly change the scope of work, and do not cause an increase of more than ten percent 10% ($90,000) of the original contract amount per each amendment.
SUMMARY/DISCUSSION:
NMC must arrange for care and treatment of patients who present to the emergency department or hospital clinics in need of medical care. NMC has an agreement with Advanced Gastroenterology of Monterey County, for which Mumtaz Tabbaa M.D., a board certified gastroenterologist, provides gastroenterology call coverage in the emergency department and outpatient services in the specialty clinic. NMC wishes to amend the current agreement to continue the same services without interruption.
Advanced Gastroenterology of Monterey County is paid according to the terms of this agreement for the actual number of call coverage and clinic services provided, which may increase due to patient volume and the need for coverage, but will not increase the rate of pay or exceed the aggregate maximum liability amount. NMC has obtained an independent opinion of fair market value supporting the payment terms of this Agreement.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Agreement as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Agreement as to fiscal provisions. The Agreement has also been reviewed and approved by Natividad Medical Center’s Finance Committee on February 23, 2017 and Board of Trustees on March 3, 2017.
FINANCING:
The cost of this amendment is $900,000. The total not to exceed amount of the Agreement is $1,800,000 for the period April 1, 2015 to March 31, 2019. $118,982 was disbursed in Fiscal Year 2014/2015 (3 months); $465,378 was disbursed in Fiscal Year 2015/2016; $450,000 is included in the Fiscal Year 2016/2017 Adopted Budget, of which $216,064 has been disbursed (6 months); the remaining amount will be budgeted in subsequent fiscal years. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Gary Gray, Chief Executive Officer, 783.2553
Attachments: Agreement; First Amendment
Attachments on File at the Clerk of the Board