Title
a. Authorize the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) or his designee to execute the Professional and Call Coverage Services Agreement with Precision Orthopedics to provide orthopedic services for an amount not to exceed $15,000,000 for the period April 1, 2024 to March 31, 2027; and
b. Authorize the CEO or his designee to sign up to three (3) 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 ten percent 10% ($1,500,000) of the original contract amount and do not increase the total contract amount above $16,500,000.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) or his designee to execute the Professional and Call Coverage Services Agreement with Precision Orthopedics to provide orthopedic services for an amount not to exceed $15,000,000 for the period April 1, 2024 to March 31, 2027; and
b. Authorize the CEO or his designee to sign up to three (3) 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 ten percent 10% ($1,500,000) of the original contract amount and do not increase the total contract amount above $16,500,000.
SUMMARY/DISCUSSION:
NMC must arrange for the provision of professional consultation and treatment of patients who present to the emergency department and outpatient specialty clinic in need of medical care or treatment in general orthopedic surgery and certain subspecialties (e.g. hand, spine and trauma) as required for a Level II Trauma Center.
NMC would like to enter into this Agreement with Precision Orthopedics, for which board-certified orthopedic surgeons provide exclusive orthopedic services, including 24/7 dedicated emergency department call coverage; full-time orthopedic services in the specialty clinic; medical director services for general administration of the orthopedics department; and a physician liaison to the trauma program. 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. Auditor-Controller has reviewed and approved this Agreement as to fiscal provisions. The Agreement has also been reviewed and approved by Natividad’s Finance Committee and Board of Trustees.
FINANCING:
The cost of this Agreement $15,000,000. $5,000,000 is included in the Fiscal Year 2023/2024 Adopted Budget. The remaining balance will be budgeted in subsequent fiscal years. There is no impact to the General Fund.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The services rendered in this agreement are required for a Level II Trauma Center and provide Natividad 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: Dr. Charles R. Harris., Chief Executive Officer, 783.2551
Attachments:
Agreement