REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
March 10, 2020
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title v
Agreement with CE Broker for License and Credential Verification Services
End
RECOMMENDATION(S)
Recommendation
Approve Agreement with CE Broker for license and credential verification services in an amount not to exceed $104,256 for the period of March 10, 2020 through March 9, 2023 with the option for two one- year term extensions.
(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 $104,256 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) 2019-20 budget and will be included in future recommended budgets.
Payment for services under the Agreement will be paid over a three-year period according to the following schedule:
|
Cost Type |
Year 1 |
Year 2 |
Year 3 |
Total |
|
Start Up Cost |
$3,000 |
|
|
$3,000 |
|
Annual Services |
$17,160 |
$41,532 |
$42,564 |
$101,256 |
|
Total Cost |
|
|
|
$104,256 |
BACKGROUND INFORMATION
Approval of this recommendation will allow ARMC to automate the verification process for medical staff licenses and credentials. In order to meet the compliance requirements of the Centers of Medicare and Medicaid Services (CMS) and The Joint Commission (TJC), ARMC must ensure the licenses and credentials of medical staff are verified from their original source of issuance before the start of employment and monitor the expiration dates of those licenses/certifications.
ARMC recommends approval of this agreement, including non-standard terms, to ensure ARMC meets the compliance requirements of CMS and the TJC. Currently, the ARMC completes the verification process manually, but manual checks are not sustainable on a daily basis for an organization as large as ARMC. Automating the service will decrease the chances of human error and provide a streamlined process for notifying ARMC and staff of expiring licenses and credentials. The service will also inform ARMC of any employee / medical staff member that has a discrepancy or disciplinary action against their license.
This agreement, as negotiated by the County, is based on the County standard format and content but includes terms contained in CE Broker’s standard contract and Statement of Work forms which differ from the standard County contract. The non-standard terms of the agreement include:
1. County is required to maintain the confidentiality of information that CE Broker considers confidential and to give notice to CE Broker before disclosing confidential information
• The County standard contract does not require the County to maintain the confidentiality of a contractor’s information.
• Potential impact: County staff will need to be aware of its obligation to notify CE Broker prior to any disclosure, including in response to a Public Records Act request. County staff could be in breach of the agreement and incur liability to CE Broker for disclosure of Contractor’s information, which amount could exceed the contract amount.
2. The Contractor may list the County of San Bernardino as a client in its marketing materials and website
• The County standard contract requires the County’s permission before Contractor is entitled to use County’s name as a client.
• Potential impact: The County may receive solicitations from other license verification service providers or be contacted by prospective clients of the Contractor and County staff members will need to be aware to refer contract questions to County Counsel.
3. The Contractor is required to disclose criminal and civil proceedings against its partners, principals, members, associates CEO, COO, and CAO within the last seven years
• The County standard contract requires disclosure of criminal and civil proceedings within the last ten years against the above persons as well as “key employees”, defined as individuals providing direct service to the County. Contractor conducts criminal background checks on all employees for actions within the last seven years before hiring.
• Potential impact: County will have to pay for a background check on Contractor’s employees for criminal and civil proceedings if the County decides to obtain that information.
4. The Contactor may subcontract work under the agreement without giving the County notice of the subcontract agreement and without obtaining the County’s prior approval
• The County standard contract requires Contractor to obtain written consent from the County before entering into any subcontractor agreement for work contemplated under the agreement.
• Potential impact: Although CE Broker is liable for the delivery of services defined by the contract, part of the services provided to the County may be performed by an entity not known to the County.
5. Each party may terminate the contract for convenience on sixty (60) days’ notice
• The County standard contract allows termination for convenience n thirty (30) days’ notice.
• Potential impact: In the event that Contractor terminates the agreement for its convenience, the County will have additional time to locate a substitute contractor prior to the termination of agreement. County staff will need to be aware of the lengthened notice period.
6. Payment Terms
Contractor may charge interest on undisputed payments received later than sixty (60) days after transmission of the invoice and may terminate the agreement for breach if County fails to pay past due amounts within thirty (30) days of the Monetary Default Notice.
• The County standard contract are net 60 days with interest or default on County payments.
• Potential impacts: County standard processing time is 60 days or more. Failure to pay will result in a material breach in the agreement, which would allow CE Broker to terminate the agreement and seek other legal remedies, which could exceed the amount of the agreement.
7. Mutual Limitation of Liability capped at two times the amount of fees actually paid by the County during the twelve month period prior to the event giving rise to the claim for damages. The limitation does not apply to the indemnity obligations, claims arising out of breach of confidentiality or claims arising from gross negligence or willful misconduct.
• The County standard contract does not include a limitation of liability.
• Potential Impact: The most probable claims relate to intellectual property rights, disclosure of confidential information and erroneous license verification reports. For these types of claims or losses arising out of Contractor’s breach, the County may make direct claims against the Contractor or demand Contractor to defend and indemnify County against third party claims.
8. Right to Monitor and Audit
County will need to notify CE Broker in the event of a review or audit by other entities, including governmental bodies as the review may result in the disclosure of CE Broker’s confidential information.
• The County standard contract does not require County to give the Contractor prior notice of an audit, so County staff will need to note this requirement in order to avoid liability to the Contractor.
ARMC recommends the approval of the agreement, including the non-standard terms, to ensure that the medical staff at ARMC are properly licensed and certified to provide care to the residents of San Bernardino County.
PROCUREMENT
This service was procured through a competitive process by obtaining three quotes from qualified vendors. This is in accordance with the County Procurement Policy for services under $100,000 annually. ARMC reviewed the proposals received and selected the most qualified vendor to meet the needs of the hospital.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Fiona Luke, Deputy County Counsel, 387-4609) on February 12, 2020; Purchasing Department (Jacqueline Ambrose, Lead Buyer, 387-2463) on February 28, 2020; Finance (Amanda Trussell, Principal Administrative Analyst, 387-4773) on February 24, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on February 24, 2020.