Title
a. Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute the Second Amendment to Professional Services Agreement with Central Coast Head & Neck Surgeons to provide otolaryngology and audiology services at NMC, extending the term of the agreement to June 30, 2015 and adding $800,000, for an amount not to exceed $1,600,000 in the aggregate (for the period July 1, 2011 to June 30, 2015); and
b. Authorize the Purchasing Manager for NMC to execute 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:
- Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute the Second Amendment to Professional Services Agreement with Central Coast Head & Neck Surgeons to provide otolaryngology and audiology services at NMC, extending the term of the agreement to June 30, 2015 and adding $800,000, for an amount not to exceed $1,600,000 in the aggregate (for the period July 1, 2011 to June 30, 2015); and
- Authorize the Purchasing Manager for NMC to execute 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 has an agreement effective July 1, 2011, and amended July 1, 2012, with Central Coast Head and Neck Surgeons to provide 24 hours a day, 7 days a week otolaryngology, also known as ear, nose and throat (ENT), call coverage in the emergency department and to provide audiology services to hospital inpatients, and outpatients in the specialty clinic. NMC wishes to enter into the Second Amendment with Central Coast Head & Neck Surgeons to extend the term of the agreement an additional twenty (24) months and to increase the maximum liability of the agreement, but not increase the rate of pay for services.
The total expenditure by fiscal year is as follows:
Fiscal Year 2011/2012 $379,170
Fiscal Year 2012/2013 $380,000
Central Coast Head & Neck Surgeons is paid a monthly rate for call coverage services and an hourly rate for audiology services. The number of audiology services provided may increase due to patient volume, but will not to exceed the maximum liability of the agreement. 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 Board of Trustees.
FINANCING:
The total cost for this Amendment/Agreement is $1,600,000 for the forty eight (48) month period. $379,170 was disbursed in Fiscal Year 2011/2012; $380,000 was disbursed in Fiscal Year 2012/2013; $400,000 is included in the Fiscal Year 2013/2014 Recommended Budget and the remaining $440,830 will be budgeted in subsequent fiscal years. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Harry Weis, Chief Executive Officer, 783.2553
Attachments: Agreement; First Amendment; Second Amendment
Originals on file at the Clerk of the Board