HomeMy WebLinkAboutMINUTES - 09151987 - 1.56 St
TO- BOARD OF SUPERVISORS
FROM: Phil Batchelor Cmtra
County Administrator C,)sta
DATE'. September 1, 1987 Co ��
SUBJECT: Modification to Agreement with �'� ��1
National Medical Enterprises
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND ATI) JUSTIFICATION
RECOMMENDATION•
Approve and authorize the County Administrator to execute on
behalf of the County a memorandum agreement with National Medical
Enterprises stipulating that if the amount of $1,300,000 is paid
to the County by October 1, 1987 the agreement entered into by
the County and NME on March 13, 1984 will be considered to have
been complied with in full.
BACKGROUND:
On March 13, 1984, the Board of Supervisors entered into an
agreement with National Medical Enterprises (NME) whereby the
County would surrender licenses to 86 acute hospital beds in
return for payment by NME of $1,600,000. The agreement provided
for an option in the amount of $200,000, leaving a balance due of
$1,400,000. Since this agreement was entered into legislation
has been enacted in California which puts in question the
County' s ability to enforce the agreement. NME has, however,
agreed to voluntarily comply with the terms of the agreement.
In an effort to conclude discussions with NME at the earliest
date and because of the Health Services Department' s pressing
need for funds, County .staff has agreed with NME to recommend to
the Board that the balance due the County be reduced by $100,000
if payment is received in full by October- 1, 1987 . The terms of
the original agreement require payment from NME only when they
receive or are denied all necessary final government approvals to
develop the San Ramon Hospital.
Because the settlement of litigation and plans to annex the
hospital site to the City of San Ramon have taken longer than was
originally anticipated, it is judged to be in the County' s best
interests to reduce the balance due in exchange for prompt
payment of the entire balance due.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE;
X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD, COMMITTEE
X APPROVE OTHER
5 1 GNATURE(S):
ACTION OF BOARD ON September 15. 1987 APPROVED AS RECOWMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT 1 AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED
Health Services Director ---
County Counsel PHIL BATCHELOR, CLERK OF THE BOARD OF
Harri s Koenig, NMESUPERVISORS AND COUNTY ADMINISTRATOR
John Muir Hospital Medical Center ��.ec��r
1601 Ygnacio Valley Rd. BY ,DEPUTY
M382/7-83 Walnut Creek 94598
Attn : Pam Ledwith
San Ramon Valley Community Hospital
and Medical Center
August 13, 1987 Contra Costa County
AU(l
Mr. Phil Batchelor
County Administrator Office of
Contra Costa County County Administratof
County Administration Building
651 Pine Street
Martinez, CA 94553
Dear Mr. Batchelor:
This letter is being sent to confirm the substantive issues that
we discussed relating to our purchase of bed licenses from the
County on August 7. It serves as an amendment to your November
13, 1986 letter to Mr. Gross that, in effect, modified our
original agreement.
We have agreed that if NME purchases the bed licenses before
October 1, 1987,. the balance that will be due would be reduced to
$1.3 million from the $1.4 million specified in the legal option
contract. This discount is to be allowed in consideration of our
prepayment of the amount due. In the event payment is not
received by the County on or before October 1, 1987, the payment
schedule and amount will revert back to the provision's of the
aforementioned November 13th letter.
If this amendment is agreeable to you, please sign in the space
provided below and return to me.
Your prompt action on this matter is greatly appreciated. I look
forward to continuing our working relationship with the County in
the future.
Si ,
Har i F. Ko nig Phil Batchelor
Di e or of evelopment County Administrator
: ja
cc: John Meyers
PROJECT OFFICE (415)830-0770
nme A National Medical Enterprises 2420 Camino Ramon, Suite 229
Health Care Facility San Ramon, California 94583