REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 27, 2023
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Physician Services Agreement for Medical Oncology Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Physician Services Agreement No. 20-477 with City of Hope Medical Foundation, Inc. to update contract language, increase the total contract amount by $668,900 from $4,013,400 to $4,682,300, and to extend the contract term by six months, for a total contract term of July 1, 2020 through December 31, 2023.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
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 $668,900 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 Arrowhead Regional Medical Center’s (ARMC) 2022 - 23 budget and will be included in 2023-24 recommended budget.
BACKGROUND INFORMATION
Amendment No. 1 to Physician Services Agreement No. 20-447 (Agreement) will allow the City of Hope Medical Foundation, Inc. (COH) to continue to provide inpatient and outpatient medical oncology services at ARMC for an additional six months. This will allow COH additional time for their internal review of a proposed service contract to provide continuity of care for patients, without disrupting the services provided to oncology patients at ARMC. Negotiations with COH began in February and have been ongoing. Unfortunately, COH has experience an administrative change earlier this month and due to the legal and other necessary reviews needed are unable to meet the required deadline for the new contract and additional requirements.
ARMC partners with various medical corporations to provide medical care and education programs for the hospital and their Family Health Clinics (FHCs). COH provides highly skilled licensed oncologists to provide medical and clinical oncology services to ARMC patients.
COH physicians associated with this contract are granted clinical privileges, which allow the physician to practice medicine at ARMC and are approved to serve in administrative roles in the same manner.
On June 23, 2020 (Item No. 13), the Board of Supervisors (Board) approved Agreement No. 20-477 with COH to provide medical oncology services in the amount of $4,013,400 for the period of July 1, 2020 through June 30, 2023.
ARMC and COH are currently in negotiations to bring a new contract to the Board prior to the new termination date of December 31, 2023.
ARMC recommends approval of this amendment, as it can continue to provide the continuity of care necessary for the safety, health and social service needs of county residents with cancer.
PROCUREMENT
Although the Government Code does not make an explicit exception to competitive bidding for professional physician services, Section 31000 provides the Board with the authority to contract with and employ any persons for the furnishing of “special services.” Section 31000 authorizes a county to contract for medical services without the necessity of advertising for bids. It is the best interest of ARMC patients to allow them to continue with the existing physicians for continuity of care.
The Purchasing Department recognizes the specialized credentials and supports the non-competitive procurement for these services, allowing for continuity of care for patients in the specialty area of oncology.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387-5455) on June 16, 2023; Purchasing (Ariel Gill, Buyer, 777-0722) on June 16, 2023; ARMC Finance (Chen Wu, Budget and Finance Officer, 580-3165) on June 16, 2023; Finance (Jenny Yang, Administrative Analyst, 387-4884) on June 20, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on June 20, 2023.
.