Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute an amendment No. 2 to the agreement (A-14280) with Optuminsight, Inc. for perioperative (surgery) consulting services to improve the number of surgical procedures and patients satisfaction, extending the agreement an additional three (3) years (April 2, 2020 through March 31, 2023) for a revised full agreement term of March 26, 2019 through March 31, 2023 and adding $1,560,000 for a revised full agreement amount not to exceed $1,680,000.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute an amendment No. 2 to the agreement (A-14280) with Optuminsight, Inc. for perioperative (surgery) consulting services to improve the number of surgical procedures and patients satisfaction, extending the agreement an additional three (3) years (April 2, 2020 through March 31, 2023) for a revised full agreement term of March 26, 2019 through March 31, 2023 and adding $1,560,000 for a revised full agreement amount not to exceed $1,680,000.
SUMMARY/DISCUSSION:
The volume in Natividad’s surgery rooms has increased by at least 10% year-to-year. In certain specialties like orthopedics, urology and GI, volumes increased by more than 20% year-to-year. Additional new procedures like neurosurgery have also added volume to the surgery department. The increase in volume over the past years has also added operational challenges to the surgery space for procedures, the coordination of schedules and appointments for procedures between surgeons, clinics and surgical suites, and overall the process for surgical procedures. An opportunity exists to increase volume and improve the overall processes for surgical procedures including customer satisfaction.
Optuminsight Advisory Services specializes in helping hospitals and healthcare systems address this challenge with expert guidance, insights, strategies, and implementation support to improve processes and capture additional volume. Optum’s team will provide leadership in the following areas: improve volume growth by effectively organizing the scheduling process, improve customer service for both patients and physicians by improving access, adjust surgical suite numbers to optimize labor and productivity of staff, improve pre-procedure preparations to prevent delays and cancellations, improve surgery efficiency - length of procedures, and improve surgeons and specialists engagement in governing room capacity management. The extensive improvement plan will consist of the participation from front line personnel (registration, scheduling, financial counseling, etc.) , nurses, surgery nurses, physicians, clinics, ancillary departments (laboratory, imaging, etc.) and support staff to adjust processes to improve outcomes.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this amendment no. 2 as to legal form, and the Auditor-Controller has reviewed and approved as to payment provisions. The amendment no. 2 has also been reviewed and approved by NMC’s Finance Committee on November 21, 2019 and by its Board of Trustees on December 6, 2019.
FINANCING:
The cost for this agreement is $1,560,000 of which $300,000 is included in the Fiscal Year 2019-20 Adopted Budget and remaining balances will be included in corresponding years.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This agreement is for executive level consulting services, the outcome of which will contribute to a more efficient use of resources within the organization.
__ Economic Development
__ Administration
X Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Daniel Leon CFO, 783-2561
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Optuminsight, Inc. Agreement
Optuminsight amendment no. 1
Optuminsight amendment no. 2
Attachments on file with the Clerk of the Board