REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 25, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with ECG Management Consultants to Continue Fair Market Value Determinations and Audits of Contracted Physician Agreements
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Agreement No. 23-556 with ECG Management Consultants to perform fair market value evaluations and audits relating to the performance of contracted physician services agreements, increasing the not-to-exceed amount by $698,000 from $1,250,000 to $1,948,000, with no changes to the term of July 1, 2023 through June 30, 2028.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The cost of $698,000 is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. Funding sources may change in the future pending any legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2024-25 recommended budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
On June 27, 2023 (Item No. 10), as the result of a Request for Proposal No. ARMC122-ARMC-4864, the Board of Supervisors, approved Agreement No. 23-556 (Agreement) with ECG Management Consultants (ECG) to perform fair market value (FMV) evaluations and audits relating to the performance of contracted physician services agreements, in the not-to-exceed amount of $1,250,000, for the period of July 1, 2023 through June 30, 2028.
Amendment No. 1 to the Agreement will allow ARMC to increase the total contract amount. It has been determined that ARMC will conduct a higher volume of FMV evaluations than initially anticipated, hence an increase to the contract amount is necessary to cover the additional costs associated with the increase in FMV evaluations.
ARMC recommends approval of Amendment No. 1, as FMV evaluations for physician services agreements are necessary to assist ARMC in determining appropriate compensation, adding services, making changes in services, and complying with applicable fraud and abuse laws.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on January 29, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on January 29, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on January 30, 2025; Finance (Jenny Yang, Administrative Analyst, 387-4884) on February 5, 2025; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on February 5, 2025.