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Home My WebLink AboutMINUTES - 01241984 - 2.4 TO: BOARD OF SUPERVISORS Contra FROM: M. G. Wingett, County Administrator Costa DATE: January 24, 1984 Cou' "y SUBJECT: Hospital Management Contract SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1 . Authorize County Administrator and Acting Health Services Director to negotiate contract with Nu-Med Medical , Inc. for Hospital management and fiscal services for the period February. 1 , 1984 - January 31 , 1986 at an annual fee of $525,000 in re- turn for which Nu-Med will provide a Hospital Administrator, a Chief Fiscal Officer, a Hospital Controller and additional consulting staff as needed, said contract to be returned to the Board for further consideration. 2. Negotiations on the contract should include specific provisions relating to the following: A. Cancellation procedures B. A review of existing administrative staff to determine whether all present positions are needed. C. A method of evaluating and monitoring progress in accomplishing agreed upon goals. D. Documentation regarding the level of consulting services actually provided to the County. 3. Agreement that Nu-Med is to begin work on February 1 , 1984, despite the fact that a contract may not be fully executed until a later date. BACKGROUND: See attached letter from County Administrator, Auditor-Controller and Actinglbalth Services Director dated January 23, 1984. CONTINUED ON ATTACHMENT: YES SIGNATURE: l/� Z RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ,t ACTION OF BOARD ON 4 62 4 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) 1 HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD Attachment OF SUPERVISORS ON THE DATE SHOWN'./ b CC: County Administrator ATTESTED Acting Health Services Director J.R. LSSON, COU Y CLERK County Counsel AND EX OFFICIO CLERK OF THE BOARD Auditor-Controller 324 Liston Witherill President, Nu-Med M382/7"83;Z'/0 4-u �t�_` n�s:�� c.�est BY GG��-CJ L� Z' DEPUTY Board of Supervisors County Administrator Contra Tom Powers 1st District County Administration BuildingCOSta Nancy C.Fanden Martinez, California 94553 2nd District (415)372-4080 County Robert I.Schroder 1.1 M. G.Wingett 3rd District _ County Administrator Sunne Wright McPeak 4th District . _1;m Torlakson 59r District RECEIVED January 23 1984 1984 J. R. OLSSON CLERK BOARD OF SUPERVISORS Board of Supervisors CON RA COSTA CO: De u 651 Pine Street Martinez, California 94553 Re: Hospital Manaqement Firm Dear Board Members: The Board of Supervisors has directed that the Countv Administrator seek a hospital management firm capable of managing the County Hospital and capable of handling the complex fiscal affairs of the Health Services Department. Requests for Proposals were sent to firms who indicated an interest in entering into a hospital management contract with the County. Responses were received from six firms: Alta Bates Corporation Knight & Carlson Community Health Planning Corporation National Medical Enterprises, Inc. Hospital Corporation of America Nu-Med Medical , Inc. These proposals were circulated to a variety of groups and individuals con- cerned with the management of County Hospital . A screening committee was convened consisting of: M. G. Wingett, County Administrator Donald Bouchet, Auditor-Controller William Walker, MD, Acting Health Services Director The screening committee reviewed each proposal and. narrowed the field to two firms. These two firms were invited to meet with the screening committee to answer questions and review their proposal in more detail . The screening committee is now prepared to unanimously recommend that the County contract with Nu-Med Medical , Inc. to manage the County Hospital and the Health Services Department's fiscal affairs. Nu-Med has extensive 1100rd of Supervisors January 23, 1984 Page Two. experience with public hospitals. Nu-Med will place.._three full-time individuals in the department: a Hospital Administrator a Hospital Controller a Department Fiscal Officer In addition to the on-site staff, Nu-Med will assign two group vice-presidents to Contra Costa County, along with a full complement of specialist consultants who will be available to work with their counterparts in the Hospital organi- zation. The Controller will report to the Hospital Administrator. Both the Hospital. Administrator and the Fiscal Officer will report to the Acting Health Services Director. Nu-Med is prepared to place interim staff in place by February 1 with permanent staff to be hired and in place within about 60 days. Nu-Med requests a two-year contract at $525,000 per year. Nu-Med has agreed to defer payment of the first five months of their fee until July 1 , 1984 so there will be no cash drain on the County during the current fiscal year. For the ser- vices provided, Nu-Med's fee is competitive with the other bids received. We, therefore, recommend that the County agree to contract with Nu-Med effective February 1 , 1984, the contract to run through January 31 , 1986 at an annual fee of $525,000. The County Administrator and Acting Health Services Director should be directed to negotiate the actual terms of the contract including the details of the work program and return the contract to the Board for its further consideration with the understanding that the contract i,s to be effective February 1 , 1984, regardless of when the actual document is executed. Respectfully, M. G. Wingett, Cou0ty Administrator . C-Donald L. Bouchet, Auditor-Cont oller William B. Walker, MD, Acting Health Services Director ddy cc: County Counsel 326