Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute the Third Amendment to Professional Services Agreement with Kalle Varav, M.D. to provide pain management services at NMC effective January 1, 2017, extending the term by twenty-four months, for a revised term of January 1, 2013 to December 31, 2018 and adding $200,000, for a revised not to exceed amount of $500,000; and
b. Authorize the Deputy Purchasing Agent for NMC to execute up to three (3) future amendments to this Agreement where the total amendments do not exceed the term by more than twelve (12) months, do not exceed 10% ($10,000) 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) or his designee to execute the Third Amendment to Professional Services Agreement with Kalle Varav, M.D. to provide pain management services at NMC effective January 1, 2017, extending the term by twenty-four months, for a revised term of January 1, 2013 to December 31, 2018 and adding $200,000, for a revised not to exceed amount of $500,000; and
b. Authorize the Deputy Purchasing Agent for NMC to execute up to three (3) future amendments to this Agreement where the total amendments do not exceed the term by more than twelve (12) months, do not exceed 10% ($10,000) of the original contract amount and do not significantly change the scope of work.
SUMMARY/DISCUSSION:
Natividad Medical Center operates the D’Arrigo Family Specialty Services Outpatient Clinic offering over fifteen different specialty care services including pain management. NMC has an agreement with Kalle Varav, M.D. to provide pain management services in the specialty clinic one day per week and pain management services in outpatient surgery.
NMC wishes to amend the Agreement with Dr. Varav to extend the term an additional twenty-four (24) months in order to continue to provide pain management services without interruption. NMC has obtained an independent opinion of fair market value supporting the payment terms.
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 October 27, 2016 and Board of Trustees on November 4, 2016.
FINANCING:
The cost for this Amendment is $200,000. The total not to exceed amount of the Agreement is $500,000 for the period January 1, 2013 to December 31, 2018. $5,400 was disbursed in Fiscal Year 2012/2013 (six months); $48,138 was disbursed in Fiscal Year 2013/2014; $79,479 was disbursed in Fiscal Year 2014/2015; $105,296 was disbursed in Fiscal Year 2015/2016; $100,000 is included in the Fiscal Year 2016/2017 Adopted Budget. The remaining balance will be budgeted for 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., Chief Executive Officer, 783.2553
Attachments:
Agreement; First-Third Amendment
Attachments on File at the Clerk of the Board