Title
Authorize the Purchasing Manager for Natividad Medical Center ("NMC") to execute Renewal and Amendment No. 1 to the Agreement with The Claro Group, LLC, for Consultation and Guidance on Compliance Matters Related to Physician Agreements ("Agreement"), No. MYA 895, reviving the Agreement, which expired February 28, 2014, adding $10,000 for a total not to exceed contract amount of $110,000 in the aggregate, and extending the Agreement from April 25, 2013 to June 30, 2014.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors authorize the Purchasing Manager for Natividad Medical Center ("NMC") to execute Renewal and Amendment No. 1 to the Agreement with The Claro Group, LLC, for Consultation and Guidance on Compliance Matters Related to Physician Agreements ("Agreement"), No. MYA 895, reviving the Agreement, which expired February 28, 2014, adding $10,000 for a total not to exceed contract amount of $110,000 in the aggregate, and extending the Agreement from April 25, 2013 to June 30, 2014.
SUMMARY/DISCUSSION:
The Claro Group, LLC ("Claro") provides hospitals and other healthcare providers, consultation, guidance, and investigation of financial matters, including achieving accurate reimbursement, improved quality ratings, and compliance with Centers for Medicare and Medicaid Services ("CMS") rules and regulations. In Fiscal Year 2013-2014, Claro, on behalf of Natividad Medical Center ("NMC"), performed consultation regarding compliance matters regarding physician agreements. Claro stayed within the budget parameters of its deliverables but its work required performing a further area of research and attending a site visit in the amount of $10,000. This Renewal and Amendment No. 1 enables payment to be made for the additional research and visit, which were completed in January 2014.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No. 1 as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Amendment No. 1 as to fiscal provisions. The CAO-Budget and Analysis Division has advised to inform the BOS the spending authority (appropriations) associated with NMC's FY 2014 Adopted Budget has been exceeded and approval and authorization for modification of NMC's appropriation budget should be presented to the BOS. Since NMC is an Enterprise Fund, this does not prevent continued expenditures, but it is considered good public policy, transparency and fiscal management. The Amendment has also been reviewed and approved by Natividad Medical Center's Finance Committee 5.29.14 and Board of Trustees 6.6.14.
FINANCING:
The cost for this Amendment No. 1 is $10,000 for a revised total Agreement amount not to exceed $110,000. $10,000 is included in the Fiscal Year 2014/2015 Recommended Budget. NMC is confirming its appropriations position and if its spending authority has been exceeded will return to the Board. There is no impact to the General Fund.
Prepared by: Daniel Leon, Chief Financial Officer, 783-2561
Approved by: Harry Weis, Chief Executive Officer, 783-2553
Attachments: Renewal and Amendment No. 1, Original Agreement, Spend Sheet
Attachments on file with the Clerk to the Boards Office