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Home My WebLink AboutMINUTES - 01191993 - 1.3 (3) TO: BOARD OF SUPERVISORS FROM: Mark Finucane, Health Services Director I Contra By: Elizabeth A. Spooner, Contracts Administrator ( `^S+a DATE: lJV December 23, 1992 ^u SUBJECT: Approval of Contract Amendment Agreement #23-101-5 with KPMG Peat Marwick SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: Approve and authorize the Chair, Board of Supervisors, to execute on behalf of the County, Contract Amendment Agreement #23-101-5, effective December 1, 1992, to amend Standard Contract 23-101-4 with KPMG Peat Marwick to provide additional services. II. FINANCIAL IMPACT: Under the terms of this Contract, the Contractor's services have been broken into steps, and upon successful completion of each step, the Contractor will be paid a professional fee, based on the amount of reimbursement realized by the County. In the event the Contractor is unsuccessful in prevailing on an issue, they will receive no fee whatsoever for their work on that issue. The source of funding is therefore the additional reimbursement the County will receive from each successfully appealed issue. The Payment Limit of Contract #23-101-4 (as amended) is $300, 000 which is the maximum amount the County will pay the Contractor in the event that the Contractor prevails on all the Medicare appeal work it is performing for the County under. this Contract. III. REASONS FOR RECOMMENDATIONS/BACKGROUND: KPMG Peat Marwick has been providing professional expertise with regard to recovering Medicare and Medi-Cal cost report appeal reimbursement for the Health Services Department since 1988 . Standard. Contract #23-101-4 was approved by the Board of Supervisors on July 13, 1992 . Approval of Contract Amendment Agreement #23-101-5 will allow KPMG Peat Marwick to pursue additional reimbursement issues on behalf of the County during FY 1992-1993 . CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATORRECOMME ION OF BOARD OMMITTEE APPROVE OTHER A SIGNATURE(S) ACTION OF BOARD ON v APPROVED AS RECOMMENDED X 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 Contact: Patrick Godley (370-5005) OF SUPERVISOR ON THE DATE SHOWN. �CC: Health Services (.Contracts) ATTESTED_ Risk Management Phi18g helor,Ckt!(of a 803rd of Auditor-Controller Supervisors and County Adm.inistratnr . Contractor M382/7-83 BY DEPUTY /_30 Contra Costa County Standard Porm 1/87 CONTRACT AMENDMENT AGREEMENT (Purchase of Services) Number 23-101-5 Fund/Org # 6549 Account # 2822 Other # 1. Identification of Contract to be Amended. Number: 23-101-5 Effective Date: July 1, 1992 Department: Health Services - Office of the Director/Finance Subject: Consultation and technical assistance with regard to Medicare and Medi-Cal appeals 2. Parties. The County of Contra Costa, California (County) , -for its Department named above, and the following named Contractor mutually agree and promise as follows: Contractor: KPMG PEAT MARWICK Capacity: Partnership Taxpayer ID # 13-5565207 Address: Three Embarcadero Center, San Francisco, California 94111 3. Amendment Date. The effective date of this Contract Amendment Agreement is December 1, 1992 4 . Amendment Specifications. The Contract identified above is hereby amended as set forth in the "Amendment Specifications" attached hereto which are incorporated herein by reference. 5. Signatures. These signatures attest the parties' agreement hereto: COUNTY OF CONTRA COSTA, CALIFORNIA ATTEST: Phil Batchelor, Clerk of BOARD OF SUPERVISORS the Board of Supervisors and County Administrator lot lox By Chairman/Designee Deputy CONTRACTOR By �- By XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 1�/�rrl C6Z- xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx (Designate business capacity A) (Designate business capacity B) Note to Contractor: For corporations (profit or nonprofit), the contract must be signed by tvo officers. Signature A must be that of the president or vice-president and Signature B must be that of the secretary or assistant secretary (Civil Code Section 1190 and Corporations Code Section 313). All signatures must be acknovledged as set forth on page tvo. Contra Costa County Standard Form 1/87 APPROVALS/ACKNOWLEDGEMENT, Number 23-101-5 APPROVALS RECOMMENDED BY DEPARTMENT FORM APPROVED By y esignee APPROVED: COUNTY ADMINISTRATOR By 11, E ACKNOWLEDGEMENT State of California ACKNOWLEDGEMENT (By Corporation, Partnership, or Individual) County of The person(s) signing above for Contractor, personally known to me in the individual or business capacity(ies) stated, or proved to me on the basis of satisfactory evidence to be the stated individual or the representatives) of the partnership or corporation named above in the capacity(ies) stated, personally appeared before me today and acknowledged that he/she/they executed it, and acknowledged to me that the partnership named above executed it or acknowledged to me that the corporation named above executed it pursuant to its bylaws or a resolution of its board of directors. Dated: [Notarial Seal] EPNE;s71NE R TRiL a :� COV,.,,�j.A9;;u26 z Notary Public/Deputy County Clerk z $ ! Noluey Public—California n A IAMEDA COUNTY My Comm.Expi:ss NOV 1.1996 �, -2- AMENDMENT SPECIFICATIONS Number 23-101-5 In consideration for Contractor's willingness to provide additional services under the Contract identified herein, County agrees to increase the Contract Payment Limit. County and Contractor agree, therefore, to amend said Contract as set forth below while all other parts of the Contract remain unchanged and. in full force and effect. 1. Increase in Payment Limit. The Payment Limit specified in Paragraph 4. (Payment Limit) of the Contract is hereby increased by $270, 000, from $30, 000 to a new total payment limit of $300,000 . 2. Payment Provisions. Paragraph l.d. (Payment Amounts) of the Payment Provisions is hereby amended to read as follows: " [X] d. As set forth in Paragraph 6. (Payment to Contractor) of the attached Service Plan which is incorporated herein by reference. " 3. Modification of Service Plan. a. Service Activities. Service Plan Pararaph 5. (Service Activities) is hereby modified to read as follows: "5. Service Activities. In accordance with the issues set forth in the attached "Merrithew Memorial Hospital Summary-Estimated Reimbursement Effect of Outstanding Issues and Fees" .(Attachment) which is incorporated herein by reference, Contractor shall provide certain consultation and technical assistance services to Health Services finance staff with regard to various Medicare and Medi-Cal audit appeal issues; representation at appeal hearings; and research and advice on class action litigation for the purpose of recovering reimbursement previously denied to County. " b. Payment to Contractor. Service Plan Paragraph 6. (Payment to Contractor is hereby modified to read as follows: 116. Payment to Contractor. Contingent upon successful appeal (s) by the Contractor and after approval of the Health Services Director or his designee, County will pay to Contractor a professional fee as set forth in the Attachment for each issue Contractor pursues and prevails on behalf of County, but not to exceed the Contract Payment Limit of $300,000. " tractor County Dept. 1 AMENDMENT SPECIFICATIONS Number 23-101-5 C. Addition of Endorsements Paragraph. The following paragraph is hereby added to the Service Plan as Paragraph 7: 117. Endorsements. Contractor shall not in its capacity as a contractor with Contra Costa County publicly endorse or oppose the use of any particular brand name or commercial product without the prior approval of the Board of Supervisors. In its County contractor capacity, Contractor shall not publicly attribute qualities or lack of qualities to a particular brand name or commercial product in the absence of a well-established and widely accepted scientific basis for such claims or without the prior approval of the Board of Supervisors. In its County contractor capacity, Contractor shall not participate or appear in any commercially-produced advertisements designed to promote a particular brand name or commercial product, even if Contractor is not publicly endorsing a product, as long as the Contractor's presence in the advertisement can reasonably be interpreted as an endorsement of the product by or on behalf of Contra Costa County. Notwithstanding the foregoing, Contractor may express its views on products to other contractors, the Board of Supervisors, County officers, or others who may be authorized by the Board of Supervisors or by law to receive such views. " ka Cobkractor County Dept. 2 MER RITHEW MEMORIAL HOSPITAL ATTACHMENT SUMMARY-ESTIMATED REIMBURSEMENT EFFECT OF OUTSTANDING ISSUES AND FEES DESCRIPTION TOTAL KPMG FEE FYE 6/30/84 ------------------------ 20 ALLEN STREET 13,326 4,700 INVALID WAGE INDEX 72,878 TOTAL 86,204 4,700 FYE 6/30/85 ------------------------ COUNTY INTEREST EXPENSE 25,897 9,000 MALPRACTICE INSURANCE 24,135 8,500 OPTION TO RELEASE BEDS .2,507 1,000 20 ALLEN STREET 49,800 17,400 SETTLEMENT DATA 627,614 160,000 INVALID WAGE INDEX ---------- --------- TOTAL 729,953 195,900 FYE 6/30/87 ------------------------ MALPRACTICE INSURANCE 50,440 17,600 20 ALLEN STREET 38,162 13,400 PHYSICIAN MALPRACTICE INS 22,290 7,800 COUNTY INTEREST 'EXPENSE 28,872 1.0,100 RCE ISSUE INVALID WAGE INDEX TOTAL 139,764 48,900 FYE 6/30/89 SETTLEMENT DATA 446,129 DSH CALCULATION 128,574 MH DIRECTLY ASSIGNED CAP 23,669 8,300 RECLASS OF INTERNS.& RES 46,210 16,200 INPATIENT PART B DAYS 20,400 7,100 COUNTY INTEREST ELIM 34,381 12,000 MALPRACTICE INSURANCE 19,748 6,900 RCE ISSUE TOTAL 719,111 50,500 TOTAL ALL FISCAL YEARS 1,675,032 300,000