Title
Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. Two to the Agreement (SC1882) with Toyon Associates Inc. for Medicare Cost Report Preparation Services at NMC, extending the Agreement to June 30, 2013 and adding $40,000 for a revised total Agreement amount not to exceed $110,000 in the aggregate.
Body
RECOMMENDATION:
It is recommended the Board of Supervisors authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. Two to the Agreement (SC1882) with Toyon Associates Inc. for Medicare Cost Report Preparation Services at NMC, extending the Agreement to June 30, 2013 and adding $40,000 for a revised total Agreement amount not to exceed $110,000 in the aggregate.
SUMMARY/DISCUSSION
1. Background
The Medicare and Medicaid Programs require the preparation and submission of an annual cost report five months after the end of each fiscal year. The complexity of the annual cost report has increased greatly over the years even though the actual amount of reimbursement affected by the cost report has decreased. Proper compilation of cost reports is important for future reimbursement increases and to maintain compliance with Medicare reporting rules. Toyon Associates has prepared hundreds of cost report for all types and sizes of facilities and is well qualified to assist Natividad Medical Center with the preparation of its annual cost report.
2. Scope of Service
Toyon will perform the following services for Natividad Medical Center:
Prepare NMC's Medicare cost report using Centers of Medical & Medicare Services (CMS) approved software. The preparation of the cost reports will be for filing purposes and will include preparation of all related supplemental forms and questionnaires as required by the Medicare program. The filed cost report will comply with all applicable Medicare regulations while protecting NMC's appeal rights. All areas with significant reimbursement effect will be reviewed. Consideration will be given based on prior year's cost reports and previous audited Medicare cost reports to ensure consistency.
Upon the completion of the Medicare/ Medi-Cal cost report, NMC will prepare the Short Doyle cost report. The cost allocation from the Medicare/Medi-Cal cost report is needed for the Short Doyle cost report preparation.
Non-Allowable Cost Analysis - Optional
NMC will perform a review to identify non-allowable costs. The review will begin with interviews of appropriate management personnel to develop an understanding of the NMC organization and activities that occurred during the fiscal year. Toyon will then perform a review of Administrative and General costs and any other areas deemed warranted identifying non-allowable costs. This will include review of account payable vendor invoices as needed. A report of findings and recommendations for cost elimination will be prepared and provided to NMC management prior to completion of the cost report.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment as to legal form and risk provisions. 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 Board of Trustees.
FINANCING:
The cost for this Amendment is $40,000 and is included in the Fiscal Year 2012/2013 Recommended Budget. There is no impact to the General Fund.
Prepared by: Chuck Vold, Hospital Controller, 783-2373
Approved by: Harry Weis, Chief Executive Officer, 783-2124
Attachments: Agreement, Amendments #1 and 2