Title
a. Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute the Professional Services Agreement with Monterey County Orthopedic Associates to provide orthopedic services at NMC not to exceed $500,000 for the period March 1, 2013 to February 28, 2014.
b. Authorize the Purchasing Manager for NMC to execute to sign up to three (3) amendments to this agreement where the total amendments do not exceed 10% of the original contract amount, and do not significantly change the scope of work.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a) Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute the Professional Services Agreement with Monterey County Orthopedic Associates to provide orthopedic services at NMC not to exceed $500,000 for the period March 1, 2013 to February 28, 2014.
b) Authorize the Purchasing Manager for NMC to execute to sign up to three (3) amendments to this agreement where the total amendments do not exceed 10% of the original contract amount, and do not significantly change the scope of work.
SUMMARY/DISCUSSION:
Three independent contractor orthopedic surgeons, who have practiced at NMC in excess of ten years each, (Kenneth Ishizue MD; Donald Pompan MD; Neil Richman MD) formed a California General Partnership, Monterey County Orthopedic Associates (MCOA) in November 2010. NMC has an Agreement with MCOA to provide orthopedic services in the specialty clinic and call coverage in the emergency department. NMC wishes to enter into a new agreement with MCOA upon the expiration of the existing agreement to comply with state and federal laws and to continue the same scope of services at NMC without interruption.
The current agreement with MCOA expires February 28, 2013 and the amount spent during the period November 1, 2010 to February 28, 2013 was $650,000. The maximum liability of this agreement is $500,000. MCOA 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 Board of Trustees.
FINANCING:
The total cost for this Agreement $500,000 for the period (March 1, 2013 to February 28, 2014). $125,000 is included in the Fiscal Year 2012/2013 Budget; and the remaining $375,000 will be budgeted for Fiscal Year 2013/14. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Harry Weis, Chief Executive Officer, 783.2553
Attachments: Agreement