Title
Approve and authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute Amendment No. 4 to the Agreement (A-12438/MYA723) with B.E. Smith Inc. for Interim Employee Services at NMC, extending the Agreement to June 30, 2015 and adding $633,000 for a revised total Agreement amount not to exceed $2,131,500.
Report
It is recommended the Board of Supervisors approve and authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute Amendment No. 4 to the Agreement (A-12438/MYA723) with B.E. Smith Inc. for Interim Employee Services at NMC, extending the Agreement to June 30, 2015 and adding $633,000 for a revised total Agreement amount not to exceed $2,131,500.
SUMMARY/DISCUSSION:
NMC entered into an agreement with B.E. Smith in January 2013, for $100,000 to provide NMC with a Chief Nursing Officer for a six month term. On April 16, 2013, the Board of Supervisors approved Amendment No. 1 which extended the Agreement term for an additional 6 month period and increased the total Agreement to $676, 200 to continue employment services for Chief Nursing officer and to bring on a Nursing Services Division Director at Natividad Medical Center. On February 11, 2014 the Board of Supervisors approved Renewal & Amendment No. 2 which extended the term an additional 6 months and increased the Agreement to $859,200 for continued services as needed. On July 1, 2014 the Board of Supervisors approved Amendment No. 3 which included an additional Engineering Director position, extended the term another 6 months through December 31, 2014 and increased the total Agreement amount to $1,498,500.
Despite aggressive and consistent recruitment efforts by NMC through June 2014, the hospital was not able to fill the Chief Nursing Officer and the Director of Surgical Services position NMC is moving forward with its Trauma designation and as a result of the significant changes to nursing NMC has determined that it is best to keep the current interims in place until June 2015. This will provide consistency within the Nursing Division during the transition to a Level II Trauma Center. As a result, NMC is requesting that the Board approve Amendment No. 4 to allow for these necessary services to continue for an additional 6 month period via interim employees through the B.E. Smith Agreement until such time as NMC is able to fill these positions permanently.
The additional $633,000 amount requested in Amendment 4 has been calculated by computing the projected salary costs for the interim positions for an additional six months at $434,100, plus it includes an additional $198,900 to cover additional costs needed that were not requested in Renewal & Amendment No. 2 and in Amendment No. 3. In Renewal & Amendment No. 2 and in Amendment No. 3 NMC had requested an additional six months be added to the term of the Agreement and the additional amounts requested were calculated based on NMC's belief at the time as to its ability to recruit individuals into the Chief Nursing Officer and Director of Surgical Services positions. The positions have remained vacant longer than originally estimated and therefore the requested total Agreement amount up to this point was insufficient to cover actual costs incurred. Amendment No. 4 is intended to request the additional funds needed as well as to cover the additional six months' of services for the above two mentioned positions.
B.E. Smith is a nationally recognized expert in hospital interim management and has delivered services reliably to NMC thereby allowing NMC to provide quality patient care to the constituents of Monterey County.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No.4 as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Amendment No.4 as to fiscal provisions. The Amendment No. 4 has also been reviewed and approved by Natividad Medical Center's Finance Committee on August 28, 2014 and Board of Trustees on September 12, 2014.
FINANCING:
The cost for this Amendment No. 4 is $633,000. There is no impact to the General Fund.
Prepared by: Janine Bouyea, H.R. Director, 783-2701
Approved by: Dr. Kelly O'Keefe, Interim Chief Executive Officer, 783-2553
Attachments: Amendment No. 4, plus the executed Amendment No.3, Renewal and Amendment No. 2, Amendment No. 1, Original Agreement, and Spend Sheet.
Attachments on file with the Clerk to the Board Office