Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to approve the Third Amendment to Professional Services Agreement with Jackson & Coker to provide referrals of locum tenens physicians at NMC, adding $200,000 for a revised amount not to exceed $600,000 in the aggregate (for the period April 1, 2012 to June 30, 2015); and
b. Authorize the Deputy Purchasing Agent for NMC to sign up to three (3) amendments to this agreement where the total amendments do not exceed 10% of the original contract amount, and do not significantly change the scope of work.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to approve the Third Amendment to Professional Services Agreement with Jackson & Coker to provide referrals of locum tenens physicians at NMC, adding $200,000 for a revised amount not to exceed $600,000 in the aggregate (for the period April 1, 2012 to June 30, 2015); and
b. Authorize the Deputy Purchasing Agent for NMC to sign up to three (3) amendments to this agreement where the total amendments do not exceed 10% of the original contract amount, and do not significantly change the scope of work.
SUMMARY/DISCUSSION:
NMC has an Agreement with Jackson & Coker Locum Tenens to provide the referrals of locum tenens physicians. NMC utilizes locum tenens (temporary) physicians during periods when its employed/contracted physicians are not available (e.g., vacation; illness; continuing medical education; etc.) to provide health care services vital to NMC's continued operation.
NMC has a current Request for Proposal (RFP) for locum tenens services with an anticipated award date of July 1, 2015. In the meantime, NMC continues to utilize locum tenens physicians for its temporary coverage needs. In Fiscal Year 2014/2015, the use of Jackson & Coker referred physicians was particularly high due to the additional critical care surgery services related to trauma which caused the need to add funds to the amendment during the fiscal year with this Third Amendment. The estimate additional cost of locum tenens physicians to cover critical patient care areas of the hospital is $200,000. This Amendment does not change the rate of pay, which varies by specialty and is all-inclusive of travel, lodging and associated expenses.
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 Finance Committee on March 26, 2015 and Board of Trustees on April 3, 2015.
FINANCING:
In order to find highly qualified temporary physicians that match the position we are trying to fill/cover and are available on sometimes a very short notice, it is necessary that NMC contract with multiple locum tenens companies with a combined annual maximum liability of $1,000,000. The actual cost of each contract is contingent upon the need to cover services, which is unpredictable by nature. The cost of this Amendment is $200,000. The total not to exceed amount is $600,000 for the period April 1, 2012 to June 30, 2015. $158,580 was disbursed in Fiscal Year 2013/2014 and $225,224 has been disbursed in Fiscal Year 2014/2015. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Gary Gray D.O., Interim Chief Executive Officer, 783.2553
Attachments: Agreement; First-Third Amendment
Attachments on file at the Clerk of the Board