Title
a. Authorize Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute the Second Amendment to the Professional and Call Coverage Services Agreement (A-12710) with Minh Q. Tran M.D., Inc. to provide neurosurgery services, extending the term by twenty-four (24) months (July 1, 2017 to June 30, 2019) for a revised full agreement term of July 1, 2014 to June 30, 2019 with no change to the not to exceed amount; and
b. Authorize the Deputy Purchasing Agent for NMC to sign 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 significantly change the scope of work, and do not cause an increase of more than ten percent 10% ($50,000) of the original contract amount per each amendment.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute the Second Amendment to the Professional and Call Coverage Services Agreement (A-12710) with Minh Q. Tran M.D., Inc. to provide neurosurgery services, extending the term by twenty-four (24) months (July 1, 2017 to June 30, 2019) for a revised full agreement term of July 1, 2014 to June 30, 2019 with no change to the not to exceed amount; and
b. Authorize the Deputy Purchasing Agent for NMC to sign 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 significantly change the scope of work, and do not cause an increase of more than ten percent 10% ($50,000) of the original contract amount per each amendment.
SUMMARY/DISCUSSION:
Natividad Medical Center (NMC) received its designation as the Level II Trauma Center for Monterey County in January 2015. The American College of Surgeons requires neurosurgeons provide dedicated call coverage with a 30 minute response time for Level II Trauma Centers. In order to provide 24/7 care, it is necessary to develop and sustain a core team of quality neurosurgeons made up of employed and independent contract physicians to provide daily call coverage in the Emergency Department and follow-up care to patients in the Intensive Care Unit and Specialty Clinic.
NMC has an agreement with Minh Q. Tran M.D., Inc., for which Dr. Tran, a board certified neurosurgeon, provides neurosurgery services at NMC as part of the comprehensive trauma services required for the Level II Trauma Center activation. NMC wishes to amend the agreement to extend the term an additional 24 months so that Dr. Tran can continue to provide services without interruption. Dr. Tran is paid a daily rate for coverage services. 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 May 25, 2017and Board of Trustees on June 2, 2017.
FINANCING:
There is no additional cost for the Amendment because the original amount has not been fully disbursed. The total not to exceed amount of this Agreement is $700,000 for the period July 1, 2014 to June 30, 2019. The actual cost is contingent upon Dr. Tran’s level of participation, in the call panel which may fluctuate based on his availability. $135,000 was disbursed in Fiscal Year 2014/2015; $114,000 was disbursed in Fiscal Year 2015/2016; and $96,000 has been disbursed in Fiscal Year 2016/2017 (9 months). NMC has agreements with multiple providers to cover this service where the total expenditure will not exceed $1,300,000 annually which is included in the Fiscal Year 2017/2018 Recommended Budget. There is no impact to the General Fund.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The services rendered in this agreement provide NMC with the additional support it needs in order to provide reliable and high quality patient care which improves the health and quality of life for patients and their families.
__ Economic Development
Administration
X Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Jeanne-Ann Balza, Management Analyst, 783.2506
Approved by: Gary Gray D.O., Chief Executive Officer, 783.2553
Attachments: Agreement; First-Second Amendment