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Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 3 to the Agreement (A-17786) with Hooper, Lundy & Bookman, Inc. for Legal Services at NMC, extending the Agreement to June 30, 2013 and adding $475,000 for Fiscal Year (FY) 2012-13 for a revised total Agreement amount not to exceed $1,125,000 in the aggregate.
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RECOMMENDATION:
It is recommended the Board of Supervisors authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 3 to the Agreement (A-17786) with Hooper, Lundy & Bookman, Inc. for Legal Services at NMC, extending the Agreement to June 30, 2013 and adding $475,000 for Fiscal Year (FY) 2012-13 for a revised total Agreement amount not to exceed $1,125,000 in the aggregate.
SUMMARY/DISCUSSION:
Hooper, Lundy & Bookman, Inc. is the largest full service law firm in the country, with offices in San Francisco, Los Angeles, San Diego, and Washington, D.C., dedicated solely to the legal representation of health care providers in Medicare Medicaid payments, health care business transactions, licensing and certification. On July 27, 2010, the Board of Supervisors approved the original Agreement with Hooper, Lundy & Bookman for Legal Services at Natividad Medical Center ("NMC") in an amount not to exceed $100,000 for the period April 1, 2010 to March 31, 2011 ("Agreement"). Effective January 1, 2011, the Board approved an Amendment No. 1 to the Agreement in an amount not to exceed $350,000 for the period November 1, 2010 to November 30, 2011. Effective July 1, 2011, the Board approved an Amendment No. 2 in an amount not to exceed $650,000 (a $300,000 increase) and extending the Agreement to June 30, 2012. NMC now seeks to enter into an Amendment No. 3 in an amount not to exceed $1,125,000 (a $475,000 increase) and extending the Agreement to June 30, 2013.
During the first several months of the Agreement, at a time when most of the County's agreements with healthcare professionals at NMC were undergoing amendment for the new fiscal year, Hooper, Lundy & Bookman provided sizeable legal services to the County of Monterey, to ensure that the County's agreements complied with state and federal healthcare and Medicare compliance laws. The potential sanctions for noncompliance with these laws are severe and include civil and criminal liability, as well as debarment or exclusion from participation in Medicare. Because the requested services pertained to multiple healthcare professional agreements and, due to the severity of potential sanctions for noncompliance, required the skilled competence of healthcare law experts, the law firm's advice and counsel were both necessary and extensive. The original maximum liability was nearly reached as a result of services rendered through October 31, 2010. The Agreement was subsequently amended to increase the maximum liability under the Agreement and to account for continued advice and counsel regarding healthcare professional agreements and, in addition, medical staff issues. The increased maximum liability pursuant to Amendment No. 1 was reached as a result of services rendered through June 30, 2011. In order to compensate the firm for its legal services rendered since July 1, 2011, Amendment No. 2 to the Agreement was given an effective date of July 1, 2011. The law firm's services continued to be needed in the area of healthcare professional agreement compliance, medical staff issues, and as NMC readies itself for changes initiated by healthcare reform. Accordingly the Agreement was extended to June 30, 2012.
At the beginning of 2012, Hooper Lundy & Bookman provided consultation and advice in regulatory compliance to the County in responding to a CMS validation survey as well as consultation and advice regarding commercial payor contracts. These developments since Amendment No. 2 was approved required a third amendment to the Agreement to increase the maximum liability to cover this additional work during this fiscal year. Given that the Agreement was set to expire at June 30, 2012, it is appropriate to extend the Agreement at this time into the next fiscal year.
Business Automobile Liability Insurance requirements are waived for this vendor under this Agreement. There is no risk or exposure regarding vehicles.
* Contractor does not travel onto County property with vehicles.
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 Center's Board of Trustees.
FINANCING:
The cost for this Amendment is $475,000. $130,000 is included in the Fiscal Year 2011/2012 Approved Budget. $345,000 is included in the Fiscal Year 2012/2013 Recommended Budget. There is no impact to the General Fund.
Prepared by: Stacy Saetta, Deputy County Counsel, 755-5333
Approved by: Harry Weis, Chief Executive Officer, 783-2124
Attachments: Agreement, Amendments #1, 2, and 3.