Title
a. Authorize and direct the Deputy Purchasing Manager for Natividad Medical Center (NMC) to execute the Professional and Call Coverage Services Agreement ("RFP Agreement") with Precision Orthopedics, a Medical Corporation, to provide orthopedic surgery services at NMC for the period October 1, 2014 to September 30, 2017 for a total amount not to exceed $6,300,000 in the aggregate in accordance with RFP #9600-60; and
b. Authorize the Deputy Purchasing Manager for NMC to execute up to three (3) amendments to the RFP Agreement where the total amendments do not exceed 10% of the original contract amount, and do not significantly change the scope of work; and
c. Authorize the Purchasing Manager for NMC to execute ancillary letters for the provision of notice of termination of existing independent contractor agreements with current providers of orthopedic services for NMC patients, in the event that this Board approves the RFP Agreement and in accordance with the terms of the providers' existing agreements.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a) Authorize and direct the Deputy Purchasing Manager for Natividad Medical Center (NMC) to execute the Professional and Call Coverage Services Agreement ("RFP Agreement") with Precision Orthopedics, a Medical Corporation, to provide orthopedic surgery services at NMC for the period October 1, 2014 to September 30, 2017 for a total amount not to exceed $6,300,000 in the aggregate in accordance with RFP #9600-60; and
b) Authorize the Deputy Purchasing Manager for NMC to execute up to three (3) amendments to the RFP Agreement where the total amendments do not exceed 10% of the original contract amount, and do not significantly change the scope of work; and
c) Authorize the Purchasing Manager for NMC to execute ancillary letters for the provision of notice of termination of existing independent contractor agreements with current providers of orthopedic services for NMC patients, in the event that this Board approves the RFP Agreement and in accordance with the terms of the providers' existing agreements.
SUMMARY/DISCUSSION:
The County of Monterey conducted a Request for Proposal (RFP) for orthopedic services including trauma orthopedic services at NMC. The intent of the RFP was to create a single agreement for the provision of orthopedic services, including trauma orthopedic services to NMC's patients. Pursuant to the procedures set forth in the RFP, submitted proposals were evaluated by an independent RFP Evaluation Committee, composed of professionals with expertise in orthopedic surgery and/or trauma services, none of whom had privileges to practice medicine at NMC. The RFP Selection Committee applied the selection criteria set forth in the RFP and prepared a list of proposals in order of the score achieved, with the proposal achieving the highest score listed first, the proposal achieving the second highest score listed second, and so on. Based on the order in which the proposal or proposals that achieved the highest selection criteria score or scores appeared, the RFP Selection Committee recommended the most qualified CONTRACTOR or CONTRACTORS as finalist or finalists ("Most Qualified Finalist/s") for consideration by NMC management for negotiation and execution of an agreement for the provision of Orthopedic Services. NMC management accepted the recommendation of the RFP Selection Committee, as to the Most Qualified Finalist(s). NMC management began negotiations with Precision, the bidder whose proposal received the highest selection criteria score by the RFP Selection Committee.
NMC now wishes to enter into a professional services agreement with Precision Orthopedics in accordance with RFP #9600-60 to provide exclusive orthopedic services at NMC. Under this Agreement, Precision Orthopedics will provide 365 days a year, 24 hours a day dedicated emergency department call coverage; full-time orthopedic services in the specialty clinic, including general, hand and spine clinic; orthopedic surgery services in the operating room; and medical director services.
The term of this Agreement is thirty-six (36) months with the option that either party can terminate with one hundred and twenty (120) days written notice. NMC has obtained an independent opinion of fair market value supporting the payment terms of this Agreement.
The County recently extended its current agreement with Precision to June 30, 2015, for a total contract amount not to exceed $2,800,000 in the aggregate (for the period January 1, 2012 to June 30, 2015). As described in the RFP, NMC intends to proceed with just one single contractor for the provision of all orthopedic services, including trauma services for NMC's patients. Should the Board approve this Agreement reached through RFP #9600-60, NMC requests authority to execute letters notifying existing independent contractor providers of orthopedic services of NMC patients, including Precision, that their existing agreements, in accordance with the terms of those agreements, shall terminate on the effective date set forth in the letters.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Agreement as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Agreement as to fiscal provisions. The Agreement has also been reviewed and approved by Natividad Medical Center's Special Executive Committee on July 18, 2014.
FINANCING:
The total cost for this Agreement is $6,300,000 for the period October 1, 2014 to September 30, 2017 (36 months). $1,575,000 is included in the Fiscal Year 2014/15 Adopted Budget (9 months). The remaining $4,725,000 will be budgeted in subsequent fiscal years. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Kelly O'Keefe, Interim Chief Executive Officer, 783.2553
Attachments:
Agreement
Attachments on file at the Clerk of the Board