Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment to the Agreement with Peninsula Pathologists Medical Group, Inc. to Provide Pathology Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Peninsula Pathologists Medical Group, Inc. to provide pathology services, extending the term by three months through August 31, 2025, and increasing the amount by $225,000 to an amount not to exceed $2,825,000.
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BACKGROUND:
San Mateo County provides necessary medical care to financially vulnerable patients. Peninsula Pathologists Medical Group, Inc. (PPMG) provides pathology services to San Mateo Medical Center (SMMC) and has done so since 2005. PPMG collects anatomic slide preparations and provides histology/cytology services of patient tissue samples and professional medical analysis of the slides and samples taken. PPMG's services consist of a mix of professional medical services and non-professional technical services to prepare slides and tissue samples for the pathologist's examination and interpretation. The parties are negotiating a renewal of PPMG's agreement and have engaged VMG Health to render an opinion of fair market value regarding the non-professional component of the contract's scope of services.
DISCUSSION:
The recommended amendment to extend the agreement is needed to give VMG time to prepare its fair market value analysis regarding the non-professional component of the contract pricing, which is approximately 38% of the current $866,104 annual contract value. The contract pays for the non-professional services in block annual rates, which do not readily translate to existing public wage data, necessitating the need for VMG's opinion of value based on past trends of sample preparation and analys...
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