Title
Authorize and direct the Purchasing Manager for Natividad Medical Center ("NMC") to execute Renewal and Amendment No. 1 to the Agreement (A-12268) with Hartnell College Foundation to provide Hartnell Community College District with Grant funds to meet the direct costs of the Nursing Program of Hartnell Community College, exercising the first and second option to extend the Agreement to June 30, 2015 and adding $175,000 for the period July 1, 2013 to June 30, 2014 and adding $175,000 for the period July 1, 2014 to June 30, 2015 for a revised total Agreement amount not to exceed $525,000 in the aggregate.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors authorize and direct the Purchasing Manager authorize the Purchasing Manager for Natividad Medical Center ("NMC") to execute Renewal and Amendment No. 1 to the Agreement (A-12268) with Hartnell College Foundation to provide Hartnell Community College District with Grant funds to meet the direct costs of the Nursing Program of Hartnell Community College, exercising the first and second option to extend the Agreement to June 30, 2015 and adding $175,000 for the period July 1, 2013 to June 30, 2014 and adding $175,000 for the period July 1, 2014 to June 30, 2015 for a revised total Agreement amount not to exceed $525,000 in the aggregate.
SUMMARY:
Hartnell Community College District ("Hartnell") is the owner and operator of Hartnell Community College, which operates the Hartnell College Nursing and Allied Health Programs, an academic program which educates and trains registered nurses ("RN"s) and licensed vocational nurses ("LVN"s) (collectively "Nurses") for entry level nursing positions in local health care facilities, including without limitation NMC (the "Nursing Program"). Hartnell College Foundation is an independent, not-for-profit corporation organized to support and advise Hartnell Community College in developing Hartnell activities, programs and facilities, cultivate bequests and donations, and to responsibly administer funds, properties, bequests, annuities, and other instruments for the benefit of Hartnell.
NMC seeks to amend the Agreement with Hartnell College Foundation to provide Hartnell with additional funding in the amount of $175,000 for the period July 1, 2013 to June 30, 2014 and additional funding in the amount of $175,000 for the period July 1, 2014 to June 30, 2015 for Hartnell's use in meeting the district costs of Hartnell Community College's Nursing Program, so as to help sustain and support the program. The Agreement provides NMC with the option to extend the term for a total of three years. Expenditures under the Hartnell Nursing Grant Agreement shall serve a direct and primary public purpose, by providing funds to improve the quality and quantity of nurses available to provide nursing services in the community and in particular at NMC and by improving the skills and training of physicians and nurses on staff at NMC.
This Renewal and Amendment benefit the community and NMC through a shared interdisciplinary high fidelity simulation lab which has been utilized during fiscal year 2012/2013 and 2013/2014. Hartnell Community College owns and operates a computerized fully-equipped learning laboratory where medical scenarios unfold and participants practice assessment and interventions, and evaluate processes and outcomes. The lab is organized to simulate NMC patient rooms. This promotes improved patient outcomes at NMC by developing basic communication and assessment skills and highly complex technical skills such as administering IV medications and intubating patients with life threatening conditions.
The Renewal and Amendment also benefit the community and NMC through Hartnell Community College employment of one NMC skilled RN in pediatrics as adjunct faculty. Having an NMC RN as adjunct faculty prepares Hartnell students for clinical rotations at NMC with a greater level of familiarity and training in NMC healthcare delivery policies, procedures and practices than otherwise possible.
Pursuant to this Renewal and Amendment, four to six Hartnell RN graduates each fiscal year participate as nurse residents at NMC providing care to NMC patients for a six-month residency period. Nurse residences, as recommended by the Institute of Medicine Report on Nursing Practice, benefit NMC by preparing RN graduates to practice at NMC in a residency program similar to a medical residency program. At the completion of a residency, RNs gain knowledge and confidence in all aspects of professional nursing and are likely to want to stay where the residency was practiced. Over the past few years, NMC has hired 12 nursing residents after completion of their residency. Additionally NMC has the opportunity to develop qualified candidates for future employment to assist the community.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Renewal and Amendment No. 1 as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Renewal and Amendment No. 1 as to fiscal provisions. The CAO-Budget and Analysis Division has advised to inform the BOS the spending authority (appropriations) associated with NMC's FY 2014 Adopted Budget has been exceeded and approval and authorization for modification of NMC's appropriation budget should be presented to the BOS. Since NMC is an Enterprise Fund, this does not prevent continued expenditures and is not a legal requirement, but it is considered good public policy, transparency and fiscal management. The Amendment has also been reviewed and approved by Natividad Medical Center's Finance Committee 4.24.14 and Board of Trustees 5.2.14.
FINANCING:
The cost for this Renewal and Amendment No. 1 is $350,000 and is included in the Fiscal Year 2013/2014 and 2014/2015 budgets. With all options are exercised, the total cost of this Agreement shall be $525,000 over a three year term. At this time, Natividad seeks approval for the second and third years. NMC is confirming its appropriations position and if its spending authority has been exceeded will return to the Board. There is no impact to the General Fund.
Prepared by: Nancy Majewski, Managed Care Operations Manager, NMC
Approved by: Daniel Leon, CFO, NMC
Attachments: Renewal and Amendment No. 1 and Original Agreement
Attachments on file with the Clerk of the Board's Office