Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute the Third Amendment to the Professional Services Agreement between The Regents of the University of California, a California corporation, on behalf of the University of California, San Francisco, School of Medicine, Department of Pediatrics ("UCSF"), and Natividad Medical Center ("NMC") to provide Neonatology Services at NMC effective March 1, 2015, extending the term of the Agreement to February 28, 2018 and adding $900,000 for a revised amount not to exceed $2,500,000 in the aggregate; 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 execute the Third Amendment to the Professional Services Agreement between The Regents of the University of California, a California corporation, on behalf of the University of California, San Francisco, School of Medicine, Department of Pediatrics ("UCSF"), and Natividad Medical Center ("NMC") to provide Neonatology Services at NMC effective March 1, 2015, extending the term of the Agreement to February 28, 2018 and adding $900,000 for a revised amount not to exceed $2,500,000 in the aggregate; 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:
Natividad Medical Center's Neonatal Intensive Care Unit ("NICU") provides stabilization of the initially ill newborn and intermediate intensive care as well as continuing care for growing newborns. NMC has an agreement with UCSF School of Medicine Department of Pediatrics effective November 1, 2008; amended on November 1, 2012; extended by Letter Agreement on November 1, 2013 and amended March 1, 2014 to provide two highly trained neonatologists / pediatricians for physician coverage of infants admitted to the NICU as well as oversight and medical direction of the unit.
NMC wishes to amend the Agreement with UCSF to extend the term so that UCSF providers can continue to provide the same scope of services without interruption to the critical care unit at NMC. This Third Amendment does not change the rate of pay or the scope of services already being provided under the current Agreement. UCSF is paid according to the terms of the Agreement. NMC has obtained an independent opinion of fair market value supporting the payment terms of this Agreement. The Third Amendment was not signed by all parties when the Board Report was submitted. However, the Amendment will be signed before going to the Board of Supervisors for approval on February 10, 2015.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Amendment as to fiscal provisions. The Amendment has also been reviewed and approved by Natividad Medical Finance Committee on December 23, 2014 and Board Center's Board of Trustees January 9, 2015.
FINANCING:
The cost of this Amendment $900,000. The total not to exceed amount of this Agreement is $2,500,000 for the period November 1, 2008 to February 28, 2018. Annual disbursement varies from year to year and is dependent on UCSF's clinical collections during that year. $18,102 was disbursed in Fiscal Year 2008/2009; $300,944 was disbursed in Fiscal Year 2009/2010; $110,407 was disbursed in Fiscal Year 2010/2011; $90,477 was disbursed in Fiscal Year 2011/2012; $350,698 was disbursed in Fiscal Year 2012/2013; $11,341 was disbursed in Fiscal Year 2013/2014. $300,000 is included in the Fiscal Year 2014/2015 budget. The remaining $900,000 will be budgeted for 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; First-Third Amendment; Letter of Agreement
Attachments on file at the Clerk of the Board