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: Sublease Between County of San Mateo and San Mateo Healthcare & Wellness for Burlingame Long Term Care Facility
RECOMMENDATION:
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Adopt a resolution authorizing a sublease between San Mateo Healthcare & Wellness Center, LP, and the County of San Mateo from September 30, 2020 through September 30, 2025, with an automatic renewal of five years until September 30, 2030.
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BACKGROUND:
In July of 2012, the Health System entered into an Operations Management Agreement (OMA I) with Brius, LLC to manage the Burlingame Long Term Care facility, a skilled nursing facility (SNF) now known as Burlingame Skilled Nursing (Facility), on behalf of the Health System. The County had previously entered into a Lease Agreement for the Facility and had been operating the Facility at a loss of revenue. The Agreement with Brius allowed for the operation of the Facility under the County's license saved 281 skilled nursing beds and provided hundreds of union jobs in the county. Brius performed well under the Agreement: the quality of patient care, as rated by external auditors, improved, patients moved smoothly from San Mateo Medical Center to the Facility, and County Health saved approximately $4 million each year.
Based on this beneficial relationship, on September 30, 2020, the County entered into another Operations Management Agreement (OMA II) with Brius, LLC to manage the Facility, on behalf of San Mateo County Health (SMCH), the state Licensee for the Facility. Section 1.1 of the OMA II provides that the OMA II is contingent on "Licensee maintaining a possessory interest in the Facility." It was anticipated that this would take the form of a lease of the Facility from Eretz Trousdale Properties, LLC (ETP), the current o...
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