To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment to Purchase Order with Johnson & Johnson Health Care Systems, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, an amendment to purchase order #25414 with Johnson & Johnson Health Care Systems, Inc., to increase the payment limit by $900,000 to a new payment limit of $1,099,000 for the purchase of trauma implant supplies for Contra Costa Regional Medical Center (CCRMC) and extend the term from May 31, 2024 through July 31, 2024.
FISCAL IMPACT:
Approval of this amendment will result in an additional $900,000 in expenditures for trauma implant supplies and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
In 2012, Johnson & Johnson (“J&J”) acquired DePuy Synthesis Sales, Inc. (“DePuy”) however, DePuy purchases were not consolidated under J&J branding until mid-2021. Before the branding change, CCRMC created a blanket purchase order (#17538) with DePuy for $1,750,000 for the period April 1, 2020, through March 31, 2024, to purchase implant supplies. When DePuy invoice branding changed to J&J in 2021, the Auditor-Controller’s office permitted CCRMC to continue to utilize the established purchase order for DePuy until the funds ran out in late 2023.
On June 28, 2022, the Purchasing Agent executed purchase order #25414 with Johnson & Johnson Health Care Systems, Inc. in the amount of $199,000 to purchase supplies, instruments, and minor equipment as needed by CCRMC for the period from July 1, 2022 through May, 31, 2024. This purchase order does not include the costs to cover the additional amount needed for Depuy implants.
Johnson & Johnson Health Care Systems, Inc. is an awarded supplier on the Vizient Group Purchasing Organization (GPO) contract portfolio for trauma implant supplies. Trauma implants are crucial in ensuring the precise and effective placement of medical implants. Specialized implant instruments help minimize trauma to the surrounding tissues during the implantation process. This can lead to faster healing times, reduced postoperative pain, and decreased risk of complications. The use of appropriate implant instruments contributes to patient safety. Accurate placement and reduced trauma minimize the risk of complications, infections, and other adverse events, ultimately improving the overall safety of the surgical procedure.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCRMC will not be able to purchase critical implant supplies for patients with trauma resulting in an increased risk of complications for our patients, with or without surgery.