Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute the First Amendment to the Professional Services Agreement with Yu-Chuan Liu M.D. to provide cardiology services at NMC extending the term by twenty-four months, for a revised term of March 1, 2015 to June 30, 2018 and adding $800,000, for a revised not to exceed amount of $1,400,000; and
b. Authorize the Deputy Purchasing Agent for NMC or his designee to sign up to three (3) amendments to this Agreement where the total amendments do not extend the term by more than twelve (12) months, do not exceed 10% ($60,000) 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) or his designee to execute the First Amendment to the Professional Services Agreement with Yu-Chuan Liu M.D. to provide cardiology services at NMC extending the term by twenty-four months, for a revised term of March 1, 2015 to June 30, 2018 and adding $800,000, for a revised not to exceed amount of $1,400,000; and
b. Authorize the Deputy Purchasing Agent for NMC or his designee to sign up to three (3) amendments to this Agreement where the total amendments do not extend the term by more than twelve (12) months, do not exceed 10% ($60,000) of the original contract amount and do not significantly change the scope of work.
SUMMARY/DISCUSSION:
NMC offers 24/7 cardiology call coverage in the emergency department, daily outpatient cardiology clinic and clinical interpretation services to its cardiology patients. NMC entered into an Agreement with Dr. Liu the cardiology services on March 1, 2015. NMC would like to amend the current Agreement Dr. Liu in order to continue to provide the same vital services without interruption. NMC has obtained an independent opinion of fair market value supporting the payment terms of this Agreement.
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 April 28, 2016 and Board of Trustees on May 6, 2016.
FINANCING:
The cost of this Amendment is $800,000. The total not to exceed amount of this Agreement is $1,400,000. Dr. Liu is paid a daily rate for call and clinic services, the amount of services may increase due to patient volume and coverage needs, but the rate of pay remains the same. $102,739 was disbursed in Fiscal Year 2014/2015; $325,948 was disbursed in Fiscal Year 2015/2016 (YTD); $400,000 is included in the Fiscal Year 2016/2017 Recommended Budget and the remaining $400,000 will be budgeted in Fiscal Year 2017/2018. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Gary Gray D.O., Chief Executive Officer, 783.2553
Attachments: First Amendment; Agreement
Attachments on file at the Clerk of the Board