Title
a. Authorize and direct the Purchasing Manager for Natividad Medical Center (NMC) to execute the First Amendment to the Professional Services Agreement (A-12445) with Salinas Valley Radiologists Inc. to provide radiology services at NMC, extending the term from October 1, 2014 to June 30, 2016 and adding $980,000 for revised amount not to exceed $1,667,000 for the period May 1, 2013 to June 30, 2016; and
b. Authorize the Purchasing Manager 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 and direct the Purchasing Manager for Natividad Medical Center (NMC) to execute the First Amendment to the Professional Services Agreement (A-12445) with Salinas Valley Radiologists Inc. to provide radiology services at NMC, extending the term from October 1, 2014 to June 30, 2016 and adding $980,000 for revised amount not to exceed $1,667,000 for the period May 1, 2013 to June 30, 2016; and
b. Authorize the Purchasing Manager 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 (NMC) was recommended for future designation as the Level II Trauma Center for Monterey County. The American College of Surgeons requires interventional radiologists provide dedicated call coverage with a 30 minute response time for Level II Trauma Centers.
NMC has an Agreement with Salinas Valley Radiologists, Inc. to provide 24/7 radiology call coverage, diagnostic imaging services, interventional radiology services and a radiology physician to serve as service director of NMC's Radiology Department. NMC would like to amend this Agreement before its term date to add to the scope of services to include more comprehensive interventional radiology services and on-call response times in accordance with American College of Surgeons trauma center requirements and guidelines.
The term of this Agreement is thirty eight (38) months where on or after May 1, 2015, either party may terminate without cause with ninety days written notice. 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 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 Finance Committee on August 28, 2014 and Board of Trustees on September 12, 2014.
FINANCING:
The cost of this Amendment is $980,000. The maximum not to exceed amount of this Agreement is $1,667,000 for the period May 1, 2013 to June 30, 2016. $16,583.33 was disbursed in Fiscal Year 2012/2013 (one month); $199,000 was disbursed in Fiscal Year 2013/2014; $681,107 is included in the Fiscal Year 2014/2015 Adopted Budget; the remaining $770,400 will be budgeted in Fiscal Year 2015/2016. 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 Amendment
Attachments on file at the Clerk of the Board