ITEM TITLE:
Approval of Management Agreement between the City of Valdez and Providence Health & Services-Washington dba Providence Health & Services Alaska
SUBMITTED BY: City Administration/City Attorney
FISCAL NOTES:
Expenditure Required: NA
Unencumbered Balance: NA
Funding Source: NA
RECOMMENDATION:
Administration recommends approval of health care facilities management agreement with Providence Health & Services Alaska as presented.
SUMMARY STATEMENT:
The City owns and operates the Valdez acute-care hospital (the “Hospital”), the Valdez Extended Care Center, the Valdez Counseling Center, and the Valdez Primary Care Clinic (the “Clinic”) (collectively, the “Health Care Facilities”).
The City desires that the Hospital be operated as a stand-alone facility, therefore in the interest of sound fiscal management and to ensure the continued operation of the health care facilities in a professional and efficient manner, has requested that Providence enter into this management agreement.
Providence owns and operates a number of health care facilities and nursing homes that are operated in keeping with its philosophy, mission and values and desires to manage and operate the Valdez Health Care Facilities subject to the terms and conditions contained in the agreement.
Providence and the City executed a Management and Operating Agreement (“Original Agreement”) effective January 1, 2015. The Parties amended the Original Agreement by Amendment No. 1 on January 1, 2016, Amendment No. 2 on December 17, 2019, and Amendment No. 3 on May 31, 2023. This Agreement incorporates all previously executed amendments. The redline document depicting modifications to the original agreement is attached for reference.
The Original Agreement provided for one (1) five (5) year extension, which has been exercised by the Parties, and the Original Agreement expires on January 31, 2024. This Agreement provides for an additional five-year term beginning January 1, 2025, with one (1) five (5) year option to extend; and this Agreement replaces the Original Agreement.