RECOMMENDATION
Adoption of a resolution authorizing the City Attorney to negotiate and execute third amendments to provider agreements with Gardner Family Health Network, Inc. and the County of Santa Clara for participation in the San Jose Municipal Health Services Program, extending the term through June 30, 2005.
BACKGROUND
The San Jose Municipal Health Services Program (MHSP) was established in 1978 through a grant from the Robert Wood Johnson Foundation. The Health Care Financing Administration later agreed to develop the MHSP Medicare Waiver Demonstration Project, which began on July 1,1979. Congress has extended the project six times, including a recent two-year extension through December 31, 2004.
Each MHSP city will be required to continue with its plan for transitioning patients to alternative health delivery systems by the project’s new termination date. The San Jose Transition Plan includes a number of elements required by HCFA such as creation of a drug formulary and adoption of various co-payments for services. The legislation included in the Balanced Budget Act of 1997 called for each of the four MHSP cities to submit a plan for transitioning patients to alternative health delivery by the project’s termination date, then December 31, 2000. The Congressional extensions that occurred after the Balanced Budget Act were to allow the cities additional time to implement their transition plans.
MHSP providers are Santa Clara County Health and Hospital System, which operates the East Valley and Chaboya Health Centers, and Gardner Family Health Network, which provides medical services at the St. James and Gardner Health Centers.
We are requesting that the City Council adopt a resolution authorizing the City Attorney to negotiate and execute third amendments to the provider agreements with Gardner Family Health Network, Inc. and the County of Santa Clara extending the term through June 30, 2005. The MHSP Steering Committee is scheduled to meet on June 21, 2001 and is expected to recommend City Council approval of these amendments. The purpose of extending the term beyond the termination date is to allow for submission of claims and other project closeout activities by MHSP providers.
Not applicable.
RICHARD DOYLE
City Attorney
By DANIEL TONG
Legal Services Administrator