Title
Authorize the Interim Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute Amendment No. 2 to the Agreement (A-14908) with Chancellor Consulting Group, Inc. for healthcare management consulting services, extending the agreement for an additional three (3) year period ( November 17, 2026 through November 16, 2029) for a revised full agreement term of November 17, 2020 through November 16, 2029, and adding $50,000 for a revised total agreement amount not to exceed $300,000.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Interim Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute Amendment No. 2 to the Agreement (A-14908) with Chancellor Consulting Group, Inc. for healthcare management consulting services, extending the agreement for an additional three (3) year period ( November 17, 2026 through November 16, 2029) for a revised full agreement term of November 17, 2020 through November 16, 2029, and adding $50,000 for a revised total agreement amount not to exceed $300,000.
SUMMARY:
Chancellor Consulting Group, Inc. provides healthcare management consulting services related to commercial insurance and government payers. Services include performing market analyses, preparing trend reports, recommending contract provisions, and assisting with payer contract negotiations, as needed. Chancellor Consulting Group, Inc. also provides regional, state, and national perspectives to help hospitals and professional service providers obtain optimal contract terms.
Under the agreement, NMC provides relevant data to Chancellor Consulting Group, Inc. on an as-needed basis. Chancellor Consulting Group, Inc. analyzes the information and provides recommendations based on current trends in the healthcare payer industry. NMC staff will review the analyses, reports, recommendations, and other work products to confirm that the services and deliverables meet the requirements of the agreement.
DISCUSSION:
Chancellor Consulting Group, Inc.’s services provide NMC with specialized expertise regarding commercial insurance and government payer trends, contract terms, and reimbursement practices. Its market analyses and regional, state, and national perspectives assist NMC in evaluating payer agreements and pursuing contract terms that support the hospital’s operational and financial objectives.
These services are beneficial to NMC because optimal payer contracts and informed negotiations help support financial stability and the continued delivery of healthcare services. By strengthening its payer contracting strategies, NMC is better positioned to maintain the resources necessary to provide quality care to its patients and serve the community.
Approval of Amendment No. 2 will ensure the continued availability of these specialized consulting services through November 16, 2029.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel has reviewed and approved this Amendment No. 2 as to form, and the Auditor-Controller has reviewed and approved as to payment provisions. Amendment No. 2 has also been reviewed and approved by NMC’s Finance Committee and by its Board of Trustees on October 2, 2026.
FINANCING:
The cost for this Amendment No. 2 is $50,000 which is included in the FY 2026-27 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:
This action supports the Safe and Resilient Communities Strategic Plan Goal by providing NMC with specialized expertise to evaluate payer trends, negotiate favorable contract provisions, and make informed contracting decisions. These services strengthen NMC’s organizational and financial capacity, supporting efficient operations and the continued delivery of healthcare services to the community.
__ Well-Being and Quality of Life
__ Sustainable Infrastructure for Present and Future
X Safe and Resilient Communities
__Diverse and Thriving Economy
__ Dynamic Organization and Employer of Choice
__ Administrative
Prepared by: Nancy Majewski, Managed Care Operations Manager, 783-2385
Approved by: Nancy Buscher, Interim Chief Executive Officer, 783-2553
Attachment(s):
Board Report
Chancellor Consulting Group, Inc. Amendment No. 2
Chancellor Consulting Group, Inc. Amendment No. 1
Chancellor Consulting Group, Inc. Agreement
Attachments on file with the Clerk of the Board