Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute the Third Amendment to the Professional Services Agreement with Joel Weinstein M.D. to provide general surgery services at NMC effective July 1, 2015, extending the term by twenty-four months and adding $800,000 for a revised not to exceed amount of $2,200,000 for the full term of the Agreement July 1, 2011 to June 30, 2017; 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 with Joel Weinstein M.D. to provide general surgery services at NMC effective July 1, 2015, extending the term by twenty-four months and adding $800,000 for a revised not to exceed amount of $2,200,000 for the full term of the Agreement July 1, 2011 to June 30, 2017; 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:
NMC entered into an agreement on July 1, 2011 with Joel Weinstein MD to provide 24 hour general surgery call coverage as scheduled in the emergency department and necessary follow-up to inpatients as well as outpatient specialty clinic services. The agreement was amended July 1, 2012 to extend the term and June 1, 2013 to extend the term and add outpatient clinic to the scope of services. NMC wishes to amend the agreement with Dr. Weinstein to extend the term of the agreement an additional twenty-four (24) months and add $800,000 to the amount payable. 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 April 23, 2015 and Board of Trustees May 1, 2015.
FINANCING:
The cost of this amendment is $800,000. The total cost for this Agreement is $2,200,000 for the period July 1, 2011 to June 30, 2017. $225,800 was disbursed in Fiscal Year 2011/2012; $366,182 was disbursed in the Fiscal Year 2012/2013; $451,386 was disbursed in Fiscal Year 2013/2014; and $365,632 has been disbursed in Fiscal Year 2014/15. $400,000 is included in the Fiscal Year 2015/2016 Recommended Budget, which includes compensation for clinic and coverage services and reimbursement to Dr. Weinstein for non-clinic services (including services provided in Fiscal Year 2014/2015). The actual amount paid is dependent on the number of services provided and the collections received for the services, which may increase due to patient volume and the need for coverage. The remaining $400,000 will be included in subsequent Fiscal Years. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Gary Gray D.O., Interim Chief Executive Officer, 783.2553
Attachments:
First-Third Amendments
Agreement
Attachments on file at the Clerk of the Board