Title
Ratify execution by the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) of the Fifth Amendment to the Professional and Call Coverage Services Agreement (A-13164) with Central Coast Head & Neck Surgeons to provide otolaryngology and audiology services, extending the term by six months (June 1, 2024 to December 31, 2024) for a full revised term to July 1, 2016 through December 31, 2024, but with no change to the original amount not to exceed of $6,000,000 in the aggregate
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Ratify execution by the Chief Executive Officer (CEO) for Natividad Medical Center (NMC) of the Fifth Amendment to the Professional and Call Coverage Services Agreement (A-13164) with Central Coast Head & Neck Surgeons to provide otolaryngology and audiology services, extending the term by six months (June 1, 2024 to December 31, 2024) for a full revised term to July 1, 2016 through December 31, 2024, but with no change to the original amount not to exceed of $6,000,000 in the aggregate
SUMMARY/DISCUSSION:
NMC must arrange for the provision of professional consultation and treatment and facial plastic, oral-maxillofacial, head and neck and dental surgery services of patients who present to the Emergency Department (ED) as required for a Level II Trauma Center. Central Coast Head and Neck Surgeons offers four board certified surgeons to provide 24 hours a day, 7 days a week otolaryngology, also known as ear, nose and throat (ENT), call coverage in the emergency department and audiology services to hospital inpatients and outpatients in the specialty clinic.
On December 5, 2023, the Board approved execution by the NMC CEO of a fifth amendment to the parties’ agreement with Central Coast Head & Neck Surgeons to permit the group to continue to provide the same services critical to NMC’s operation without interruption. NMC obtained an independent opinion of fair market value supporting the payment terms of this agreement. The NMC CEO thereafter executed the fifth amendment presented to the Board. NMC discovered recently that the board report submitted for Board approval at the December 5, 2023 Board meeting and the term of the agreement in the resulting Board order dated December 13, 2023 purportedly approving the fifth amendment, did not reflect the correct end date of the agreement set forth in the fifth amendment executed by the CEO. Instead, the board report and resulting Board order approving execution of a fifth amendment incorrectly reflected an agreement end date of June 30, 2024. As a result, NMC seeks Board ratification of the previously executed fifth amendment containing the correct agreement end date of December 31, 2024.
OTHER AGENCY INVOLVEMENT:
County Counsel reviewed and approved this Amendment as to legal form and the Auditor-Controller reviewed and approved this Amendment as to fiscal provisions. The Amendment also was reviewed and approved by Natividad Medical Center’s Finance Committee and Board of Trustees on November 9, 2023.
FINANCING:
There is no cost for this amendment. The total not to exceed amount of this Agreement is $6,000,000 for the period July 1, 2016 to December 31, 2024. $375,000 is included in the Fiscal Year 2024/2025 Adopted Budget. Funding will be provided from NMC’s Enterprise Fund 451-9600-6608.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The services rendered in this agreement are required for Level II Trauma Centers 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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Prepared by: Jeanne-Ann Balza, Director of Physician Services, 783.2506
Approved by: Dr. Charles R. Harris, Chief Executive Officer, 783.2553
Attachments:
Fifth Amendment
Fourth Amendment
Third Amendment
Second Amendment
First Amendment
Agreement
Attachments on file at the Clerk of the Board