To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Letter of Participation with Cardinal Health 110, LLC and Cardinal Health 112, LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
Ratify the Purchasing Agent, or designee’s July 30, 2026 execution, on behalf of the Health Services Director, of a Letter of Participation (LOP) with Cardinal Health 110, LLC and Cardinal Health 112, LLC effective the first day of the month following full execution, continuing for three years thereafter, and automatically extend to match the term of the Base Agreement to allow the West County Detention Facility to procure pharmaceuticals and related supplies.
FISCAL IMPACT:
Approval of this action will result in discounts on expenditures funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Cardinal is a wholesale distributor that supplies a wide range of products to businesses in various industries. The company sources goods in bulk and delivers them efficiently to organizations, streamlining supply chains. By leveraging large-scale purchasing, established logistics networks, and a contract with Vizient®, Cardinal provides the Contra Costa Pharmacy Department with competitive pricing, reliable inventory, and consistent service. As a wholesaler, Cardinal helps clients simplify procurement and maintain steady operations.
Cardinal has served as the primary wholesaler for CCRMC and Detention Facilities Pharmacy for several decades. Each pharmacy orders medications and receives them at designated Ship to Bill to addresses. These medications are then distributed for patient care across the hospital, ambulatory care/health centers, and detention facilities, including the Martinez Detention Facility, Marsh Creek, and Juvenile Hall. The West County Detention Facility will open in September 2026.
The Cardinal Health 110, LLC and Cardinal Health 112, LLC LOP specifies that neither is liable to the other for incidental, consequential or special damages. To the extent allowed by applicable law, if Member fails to comply with the terms, including by providing false or inaccurate information, Distributor may seek reimbursement from Member for reasonable, documented, out-of-pocket costs. These costs include those related to additional audits, site visits, enhanced CSMP oversight, or other activities in connection to Distributor’s review of the Member.
On August 5, 2025 the Board of Supervisors approved item C.57 to execute purchase order #033285 with Cardinal Health Pharmacy Services, LLC in the amount of $37,000,000 to procure pharmaceuticals and related supplies for Contra Costa Regional Medical Center, Contra Costa Health Centers, Martinez Detention Facility and Contra Costa Health Plan for the period from September 1, 2025 through August 31, 2026.
Cardinal Health 110, LLC and Cardinal Health 112, LLC is a member of the Vizient Group Purchasing Organization (GPO), which allows CCRMC and Detention Facilities Pharmacy to leverage pricing discounts and deliver high-quality, cost-effective healthcare solutions.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, the new pharmacy at the West County Detention Facility will not have access to pharmaceuticals and related supplies.