Title
Authorize the Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute renewal and amendment No. 2 to the agreement (A-15919) with Peninsula Histopathology Laboratory, Inc. for laboratory services, extending the agreement an additional one year period (April 18, 2026 through April 17, 2027) for a revised full agreement term of April 18, 2022 through April 18, 2027, and adding $300,000 for a revised total agreement amount not to exceed $1,500,000.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute renewal and amendment No.2 to the agreement (A-15919) with Peninsula Histopathology Laboratory, Inc. for laboratory services, extending the agreement an additional one (1) year period (April 18, 2026 through April 17, 2027) for a revised full agreement term of April 18, 2022 through April 18, 2027, and adding $300,000 for a revised total agreement amount not to exceed $1,500,000.
SUMMARY:
Peninsula Histopathology LaboratoryPeninsula Histopathology Laboratory will provide tissue processing and staining services for Natividad Medical Center in order to meet histology processing needs. Natividad Pathology will provide fresh tissues fixed in formalin. The tissue block processing and slide preparation will be performed at Peninsula Histopathology Laboratory’s facility.
One H&E slide will be produced from each paraffin block received unless otherwise specified on the submitted order sheet. Additional H&E stained sections, special stained sections, or immunohistochemical stained sections from previously processed blocks may also be requested. The slides shall be returned with the next scheduled delivery. Samples are expected to be processed by Peninsula Histopathology Laboratory with a 24 hour turn around time to Natividad pathologists for microscopic interpretation.
DISCUSSION:
Peninsula Histopathology Laboratory Technicians are proficient in both Hematoxylin & Eosin Staining and Special Staining (i.e. Jones stain, Gram stain, GMS stain, Congo Red stain, and Elastin stain). Additionally, they also provide Immunohistochemical staining with the use of Dako Link 48 Auto-stainers. All machines are regularly serviced, and backup machines are stored on-site in order to ensure that breakdowns will minimally affect workload and delivery schedules.
With over 40 years of experience in processing tissues for paraffin embedding and sectioning, they have perfected the techniques necessary to produce exceptional stains as well as quickly troubleshoot and rectify any quality issues. Senior microtomists inspect slides at various stages of the production process to ensure failure rates are kept at a minimum.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel has reviewed and approved renewal and amendment No. 2 as to form, and the Auditor-Controller has reviewed and approved as to payment provisions. The renewal and amendment No. 2 has also been reviewed and approved by NMC’s Finance Committee and by its Board of Trustees on March 6, 2026.
FINANCING:
The cost for this renewal and amendment No.2 is $300,000 of which $150,000 is included in the FY 2025-26 Adopted Budget. Amounts for remaining years of the agreement will be included in those budgets as appropriate. There is no impact on the General Fund with this action.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS SECTION:
The laboratory support services provided by Peninsula Histopathology Laboratory is part of the health and human services strategic initiative. The histology processing provided by Peninsula Laboratory provides the necessary support that Natividad would otherwise struggle to provide. Histology processing by Peninsula Histopathology Laboratory allows Natividad to provide Anatomic Pathology service to patients.
__ Well-Being and Quality of Life
__ Sustainable Infrastructure for Present and Future
X Safe and Resilient Communities
__Diverse and Thriving Economy
__ Administrative
Prepared by: Arthur Tiongson, Clinical Lab Manager 783-7660
Approved by: Charles R. Harris, Chief Executive Officer, 783-2553
Attachment(s):
Board Report
Peninsula Histopathology Laboratory, Inc. Renewal and Amendment No. 2
Peninsula Histopathology Laboratory, Inc. Renewal and Amendment No. 1
Peninsula Histopathology Laboratory, Inc. Original Agreement
Attachments on file with the Clerk of the Board