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: Agreement with Total Renal Care, Inc. to Provide Acute Care Dialysis, Continuous Ambulatory Peritoneal Dialysis, and Clinical Apheresis Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Total Renal Care, Inc. to provide acute care dialysis, continuous ambulatory peritoneal dialysis, and clinical apheresis services for the term of March 1, 2022 through February 28, 2025, in an amount not to exceed $3,000,000.
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BACKGROUND:
San Mateo County is responsible for providing medical care to its medically indigent adult population, including acute inpatient dialysis treatment at San Mateo Medical Center (SMMC). Due to the costs associated with necessary equipment and the need for specialized staffing, it is more economical to contract for this service with a third-party vendor than to perform the services at SMMC. A Request for Proposals was completed for these services in August of 2021.
DISCUSSION:
Total Renal Care, Inc., formerly known as Davita, Inc., has been providing SMMC with high quality dialysis care since 1999 and was elevated again due to their price, quality, and ability to provide a local team to cater positive patient experience through their services.
County Counsel has reviewed and approved the resolution and agreement as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
It is anticipated that fulfillment of physician orders by the contractor will be 95% of greater.
PERFORMANCE MEASURE:
|
Measure |
FY 2021-22 Actual |
FY 2022-23 Projected |
|
Fulfillment of physician orders by contractor |
95% |
≥ 95% |
FISCAL IMPACT:
The term of the agreement is March 1, 2022 through February 28, 2025. The amount of the agreement is not to exceed $3,000,000 for the three-year term. Funds in the amount of $666,666 included in the SMMC FY 2021-22 Adopted Budget. Funds in the amount of $1,000,000 are included in the SMMC FY 2022-23 Recommended Budget. Similar arrangements will be made for future years.
The payment provisions and levels of services in this contract are 11% higher than the previous contract, due to a rate increase, as this contractor has not received an increase since 2017.
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 is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.
ATTACHMENT:
RFP Matrix