To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #76-809-4 with Medline Industries, LP
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment #76-809-4 with Medline Industries, LP, an Illinois limited partnership, to amend Contract #76-809 (as amended by Contract Amendments #76-809-1 and #76-809-2), effective upon signature of both parties, to include reprocessing services for end-to-end distribution services at Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Center with no change in the payment limit of $4,566,950 or term ending January 31, 2029.
FISCAL IMPACT:
Approval of this Contract Amendment will not impact the payment limit of $4,566,950 budgeted by the Department and funded 100% by Hospital Enterprise Fund I.
BACKGROUND:
Medline Industries, LP is the primary distribution for medical and non-medical supplies and products for CCRMC and Contra Costa Health Centers. Contractor has been awarded a Vizient Group Purchasing (GPO) Agreement for the distribution of contracted and non-contracted supplies. As a Vizient member, CCRMC and Contra Costa Health Centers received enhanced value from their participation in the Medline/Vizient GPO. CCRMC’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. Contractor is a member of the Vizient GPO and per Administrative Bulletin 600.3, GPO members are exempt from solicitation requirements.
On December 13, 2022, the Board of Supervisors approved Contract #76-809 with Medline Industries, LP, to commit to purchase 90% of medical supplies, surgical supplies, laboratory supplies, diagnostic imaging supplies, cleaning supplies, disaster supplies and miscellaneous minor equipment for CCRMC and Health Center for the period December 1, 2022 through June 30, 2025. This distribution agreement allows the department to receive discounted prices and rebates.
On February 27, 2024, the Board of Supervisors approved Contract Amendment #76-809-1 with Medline Industries, LP, effective February 1, 2024, to increase the payment limit to $2,116,950 for end-to-end distribution services at CCRMC and Contra Costa Health Center locations to with no change in the term.
On April 28, 2025, the Board of Supervisors approved Contract Amendment #76-809-2 with Medline Industries, LP, to increase the payment limit by $2,450,000 to a new payment limit not to exceed $4,566,950 and to extend the termination date through January 31, 2029 for end-to-end distribution services at Contra Costa Regional Medical Center and Contra Costa Health Centers.
Approval Contract Amendment #76-609-4 will allow Contractor, through its wholly-owned subsidiary, Medline ReNewal, to provide reprocessing services for end-to-end distribution services, through January 31, 2029. Reprocessing services allows the County additional cost savings. Through reprocessing specific equipment and purchasing reprocessed single use medical devices, CCRMC and Contra Costa Health Centers will realize additional savings in the medical supply category. This Amendment includes County agreeing to indemnify and hold the Contractor harmless from any and all subsequent assessments levied a taxing authority for such taxes, including interest, penalties and late charges.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, reprocessing services will not be authorized, and County will incur additional costs related to the medical supplies and equipment.