Title
a. Authorize the Purchasing Manager of Natividad Medical Center (NMC) to execute atwo-year External Peer Review Services Agreement with AllMed Healthcare Management (AllMed) to provide external peer review services to NMC for a total of $20,000 for the period October 1, 2012 to September 30, 2014, with an automatic renewal for successive one year terms thereafter unless terminated; and
b. Authorize the Purchasing Manager of NMC to exercise the automatic renewal clause to extend the Agreement for three additional one-year terms, by executing up to three (3) future amendments, each of which does not increase the aggregate liability of the Agreement by more than ten percent (10%) of the current aggregate liability of $20,000, does not significantly alter the scope of work, and does not result in an increase to the General Fund Contribution.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Purchasing Manager of Natividad Medical Center (NMC) to execute atwo-year External Peer Review Services Agreement with AllMed Healthcare Management (AllMed) to provide external peer review services to NMC for a total of $20,000 for the period October 1, 2012 to September 30, 2014, with an automatic renewal for successive one year terms thereafter unless terminated; and
b. Authorize the Purchasing Manager of NMC to exercise the automatic renewal clause to extend the Agreement for three additional one-year terms, by executing up to three (3) future amendments, each of which does not increase the aggregate liability of the Agreement by more than ten percent (10%) of the current aggregate liability of $20,000, does not significantly alter the scope of work, and does not result in an increase to the General Fund Contribution.
SUMMARY/DISCUSSION:
Ongoing peer review evaluations of hospital providers are necessary to ensure excellence in physician performance and the highest quality of patient care at NMC. Because NMC is made up of several smaller specialties, some of which are single provider specialties, it is necessary to obtain the services of an external review organization, like AllMed, to perform comprehensive evaluations of provider performance. Rates vary dependent of the comprehensiveness of the evaluation.
NMC would like to enter into an agreement with AllMed Healthcare Management to provide external peer review services as part of its overall strategy for continued improvement of patient care and risk reduction.
The agreement contains a mutual indemnification provision and a justification is attached for Worker's Compensation for lower limits of $500,000 each person/$500,000 each accident/$500,000 each disease, based on ground that Contractor is the sole provider of services with no permanent workers and only occasionally temporary workers.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Agreement as to legal form, legality, and as to 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 Board of Trustees.
FINANCING:
The total cost of this Agreement is not to exceed $20,000. $15,000 is included in the fiscal year 2012 budget and the remaining balance of $5,000 will be budgeted for fiscal year 2013. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Harry Weis, Chief Executive Officer, 783.2553
Attachments: Agreement