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: Amendment to the Agreement with Quest Diagnostics Nichols Institute for Diagnostic Laboratory Testing
RECOMMENDATION:
title
Adopt a resolution authorizing an amendment to the agreement with Quest Diagnostic Nichols Institute for diagnostic laboratory testing, extending the term through October 31, 2020 and increasing the amount by $2,580,000, to an amount not to exceed $6,880,000.
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BACKGROUND:
In October 2012, your Board approved an agreement with Quest Diagnostic Nichols Institute (Quest) for diagnostic laboratory testing at San Mateo Medical Center (SMMC) as a result of a Request for Proposal (RFP). In December 2015, your Board approved an amendment to extend the term of the agreement through October 31, 2017, increasing the not to exceed amount to $4,300,000, while SMMC reviewed projects for strategic alignment and the associated resource requirements.
DISCUSSION:
SMMC continues to have a critical need for diagnostic laboratory testing, which is included as a component in the ongoing Electronic Health Record (EHR) 2.0 assessment project that will integrate SMMC‘s reporting systems. SMMC is requesting that your Board approve an extension of the existing Quest agreement by three years through October 31, 2020, with an associated increase of $2,580,000 with no increase in pricing. This will allow SMMC’s laboratory manager time to assess the impact of EHR 2.0 and complete an RFP based on those findings.
The County’s Contract Compliance Committee has approved a waiver request to extend the agreement by an additional three years beyond the current term.
The amendment and resolution have been reviewed and approved by County Counsel as to form.
This amendment contributes to the Shared Vision 2025 outcome of a Healthy
Community by providing SMMC with laboratory reference testing results. It is
anticipated that laboratory reference testing results will be returned to the lab for
analysis within 48 hours from time of pick-up 100% of the time.
PERFORMANCE MEASURE:
|
Measure |
FY 2016-17 Actual |
FY 2017-18 Projected |
|
Laboratory reference testing results returned to the lab for analysis within 48 hours from time of pick-up |
100% |
100% |
FISCAL IMPACT:
The term of the revised agreement is November 1, 2012 through October 31, 2020. The amount of the agreement is not to exceed.to exceed $6,880,000. The amendment increases the contact amount by $2,580,000. Funds in the amount of $573,333 are included in the SMMC FY 2017-18 Adopted Budget. Similar arrangement will be made for future years.
Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care are covered by the County’s General Fund contribution to SMMC, and are within the existing annual appropriation.