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 Navigant Consulting Services, Inc. for Operational and Financial Transformation Consulting and Project Management
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Navigant Consulting Services, Inc. for operational and financial transformation consulting, extending the term through September 30, 2021, and increasing the amount by $4,320,000 to an amount not to exceed $5,160,000.
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BACKGROUND:
San Mateo Medical Center (SMMC) has been engaged in multi-year planning to address a structural budget gap that is the result of flat and declining revenues and increasing costs for both directly-operated and contracted functions. The majority of SMMC expenditures are in the workforce, where compensation and benefits are driven substantially by the high cost of living in the Bay Area and competition with private health employers. The Affordable Care Act mandate to purchase health insurance has been eliminated and federal support for continued health insurance and delivery system reform is markedly absent at this time.
The new state administration has signaled that health coverage will be a focus, but it is too soon to say what the impact of those initiatives will be. At the same time, federal and state agencies continue to focus on compliance and reimbursement audits, increasing SMMC's risk of disallowance.
In light of these factors, SMMC has been pushing forward on revenue strategies, as well as options to reduce costs. In addition, SMMC has identified the need for external consultation to move forward some of the strategic and operational initiatives that will reduce the gap at a faster pace. On November 16, 2018, SMMC issued a Request for...
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