Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise Rogers, Chief, Health System
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with Stericycle Inc. to Provide Medical Waste Disposal
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Stericycle Inc. to provide medical waste disposal, for the term of June 1, 2017 through May 31, 2020, to an amount not to exceed $400,000.
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BACKGROUND:
San Mateo Medical Center (SMMC) has been contracting with Stericycle Inc. (Stericycle) to provide transportation, treatment, and disposal of medical waste since 2009.
DISCUSSION:
In November 2016, SMMC completed a Request for Proposals for transportation, treatment, and disposal of medical waste. Stericycle was chosen for its innovative approach to removal of SMMC’s environmental waste. Specifically, Stericycle offers a Sharps Management Program that features reusable containers, which reduces the impact of medical waste disposal by 30%. Stericycle also offers characterization and collection of medical waste, ensuring that SMMC complies with the Resource Conservation and Recovery Act (RCRA). This agreement includes Behavior Health and Recovery Services (BHRS) and the Youth Services Center (YSC).
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
The agreement and resolution have been reviewed and approved by County Counsel as to form.
This agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing responsible, environmentally friendly disposal of hazardous medical waste. It is anticipated that the medical and pharmaceutical waste generated by the Health System will be disposed of in 100% compliance with RCRA.
PERFORMANCE MEASURES:
|
Measure |
FY 2015-16 Actual |
FY 2016-17 Projected |
|
Percentage of medical and pharmaceutical waste generated by the Health System that will be disposed of in compliance with RCRA. |
100% |
100% |
FISCAL IMPACT:
The term of the agreement is June 1, 2017 through May 31, 2020. The amount of the agreement is not to exceed $400,000 for the three-year term. Funds in the amount of $10,527 are included in the SMMC FY 2016-17 Adopted Budget. Funds in the amount of $83 are included in the YSC FY 2016-17 Adopted Budget. Funds in the amount of $500 are included in the BHRS FY 2016-17 Adopted Budget. Similar arrangements will be made for future years.
The payment provisions of this agreement differ from the previous agreement. There is an 11% increase in funding due to a 4% or Consumer Price Index (CPI) increase after the 18-month price protection period and an additional 4% or CPI after 24 months.
Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medical indigent or to those covered by programs that do not fully meet the costs of care are covered by the County General Fund contribution to SMMC, and are within the existing annual appropriation.