REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
November 17, 2020
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Physician Service Agreement with Inland Empire Anesthesia Medical Group, Inc.
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 3 to Agreement No. 17-885 with Inland Empire Anesthesia Medical Group, Inc. to add Cardiovascular Anesthesia coverage, effective November 17, 2020, in the amount of $820,000 annually, increasing the contract amount from $6,407,200 to $7,227,200 annually plus variable charges, with no change to the termination date of December 31, 2021.
(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 the above recommended amendment will not result in the use of Discretionary General Funding (Net County Cost). This amendment will allow Arrowhead Regional Medical Center (ARMC) to provide cardiovascular anesthesia services to its patients. Physician agreements include fixed costs, as well as variable costs, that are dependent on patient volume. Sufficient appropriation and revenue are included in ARMC’s 2020-21 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
Approval of the recommended amendment will provide for the safety, health and social services needs of County residents by allowing ARMC to provide cardiovascular anesthesia to ARMC patients. Cardiovascular anesthesia requires specialized fellowship training in order to provide services needed during open heart surgery.
On December 5, 2017 (Item No. 13), the Board approved Agreement No. 17-885 with Inland Empire Anesthesia Medical Group, Inc. to provide anesthesia educational and medical services in the base amount of $6,107,200 annually for the period of January 1, 2018 through December 31, 2021. On September 10, 2019 (Item No. 20), the Board approved Amendment No. 1 adding variable compensation for teaching SGU and WUHS medical students and adding certified nurse anesthetists, increasing the annual base amount by $300,000. On September 29, 2020 (Item No. 7), the Board approved Amendment No. 2 adding variable compensation for teaching CUSM medical students.
PROCUREMENT
Although the Government Code (GC) does not make exception to competitive bidding for professional physician services, GC section 31000 provides the legislative body of any municipal corporation with the authority to contract with and employ any persons for the furnishing of “special services.” Section 31000 has been interpreted by the courts as recognition by the Legislature of a municipal corporation’s authority to employ a person who is highly and technically skilled in his science or profession without competitive bidding. The courts have viewed this section as removing all question of the necessity of advertising for bids for special services by a person specially trained and experienced and competent to perform the special services required.
County Purchasing recognizes the specialized credentials and supports the non-competitive procurement for these services.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387-5445) on October 21, 2020; Purchasing Department (Michelle Churchill, Lead Buyer, 777-0722) on October 30, 2020; ARMC Finance (Chen Wu, Budget and Finance Officer, 580-3165) on October 27, 2020; Finance (Yael Verduzco, Administrative Analyst, 387-5285) on October 28, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on November 01, 2020.