Title
a. Authorize the Chief Executive Officer for Natividad or his designee to execute the First Amendment to the Professional and Call Coverage Services Agreement with Monterey Anesthesia Professionals (MAP) to provide anesthesia services, extending the term by twelve months (January 1, 2023 to December 31, 2023) for a revised full agreement term of January 1, 2021 to December 31, 2023 and adding $7,800,000 for a revised not to exceed amount of $19,800,000 in the aggregate; and
b. Authorize the Chief Executive Officer for Natividad or his designee to sign up to three (3) future amendments to this agreement where the total amendments do not exceed 10% ($1,200,000) 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 Chief Executive Officer for Natividad or his designee to execute the First Amendment to the Professional and Call Coverage Services Agreement with Monterey Anesthesia Professionals (MAP) to provide anesthesia services, extending the term by twelve months (January 1, 2023 to December 31, 2023) for a revised full agreement term of January 1, 2021 to December 31, 2023 and adding $7,800,000 for a revised not to exceed amount of $19,800,000 in the aggregate; and
b. Authorize the Chief Executive Officer for Natividad or his designee to sign up to three (3) future amendments to this agreement where the total amendments do not exceed 10% ($1,200,000) of the original contract amount and do not significantly change the scope of work.
SUMMARY/DISCUSSION:
Natividad must arrange for the provision of professional consultation and treatment of patients of its five operating rooms, including a physician that is in-house and immediately available 24 hours a day and a back-up physician that is available on-call 24 hours a day in accordance with American College of Surgeons (ACS) guidelines for a Level II Trauma Center; 24 hours a day anesthesia services within the hospital’s labor and delivery suites; and anesthesia services such as airway management (intubations), central line insertion and acute postoperative pain management. MAP also provides a physician to serve as medical director for general administration and oversight of the anesthesia services.
Natividad wishes to amend the existing agreement to make certain adjustments to the compensation arrangements, extend the term and add funds to the aggregate amount payable so that the group can continue to provide these critical anesthesia services without interruption. Natividad 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. Auditor-Controller has reviewed and approved this amendment as to fiscal provisions. The amendment has also been reviewed and approved by Natividad’s Finance Committee and Board of Trustees.
FINANCING:
The cost of this amendment is $7,800,000. The total not to exceed amount of this agreement is $19,800,000 for the period January 1, 2021 to December 31, 2023 (36 months). $7,800,000 is included in the Fiscal Year 2022/2023 Adopted Budget. The remaining amount will be budgeted in subsequent fiscal years. There is no impact to the General Fund.
Prepared by: Jeanne-Ann Balza, Director of Physician Services, 783.2506
Approved by: Dr. Charles R. Harris, Chief Executive Officer, 783.2553
Attachments:
First Amendment
Agreement
Attachments on file at the Clerk of the Board