Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment to the Agreement with Quest Diagnostics to Provide Laboratory Reference Testing Services
RECOMMENDATION:
title
Adopt a resolution authorizing an amendment to the agreement with Quest Diagnostics to increase the amount of the agreement by $2,750,000 to an amount not to exceed $7,750,000 with no changes to the term of the agreement.
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BACKGROUND:
This Board originally approved an agreement with Quest Diagnostics to provide laboratory reference testing services on May 18, 2021, for the term of November 1, 2020 through October 31, 2025, in an amount not to exceed $5,000,000.
DISCUSSION:
San Mateo Medical Center (SMMC) continues to rely upon reference laboratory testing, a service that Quest Diagnostics has provided. In addition, SMMC's laboratory experienced an increase in volume at a rate of about 3-5% annually due to increased provider ordering. Shortly after the contract was awarded, SMMC also had to add microbiology services to the scope of the Quest Diagnostics agreement, which resulted in an additional $55,000 in costs per month. The additional microbiology services were necessary due to unplanned retirements, the inability to recruit qualified microbiology staff, and the need to improve patient care. Finally, the Quest Diagnostics agreement is utilized as a failsafe for SMMC Laboratory and with all the supply chain disruptions during the COVID pandemic, SMMC had to rely on Quest Diagnostics to backfill tests that became temporarily unavailable. As a result, this amendment will add $2,750,000 to the amount payable of the agreement to cover the increased volume and the additional microbiology services through the end of the term. The expense for these added services has been and will be part...
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