To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Purchase Order with Baxter Healthcare Corporation
☒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, a purchase order with Baxter Healthcare Corporation in an amount not to exceed $1,260,000 and Acute Vizient Agreement for the purchase of intravenous (IV) solutions and other supplies as needed for Contra Costa Regional Medical Center (CCRMC) for the period from January 1, 2025 through December 31, 2027.
FISCAL IMPACT:
Approval of this action will result in expenditures up to $1,260,000 over a three-year period and will be funded by the Hospital Enterprise Fund I revenues.
BACKGROUND:
Baxter Healthcare Corporation is a global medical products and healthcare company that specializes in essential hospital and home-based therapies. The company develops, manufactures, and distributes a wide range of medical products across several key areas. These include IV solutions and infusion systems, such as saline, dextrose, and other IV fluids, along with infusion pumps. Baxter also provides renal care solutions, including dialysis products and therapies for patients with kidney disease.
Additionally, the company offers critical care and pharmaceutical products, including anesthesia, injectable drugs, and parenteral nutrition. Furthermore, Baxter supplies surgical and biopharmaceutical solutions, such as hemostats and sealants used in surgical applications. The company serves hospitals, clinics, and home healthcare settings worldwide, supporting patient care through innovative and essential medical solutions.
This request was initiated on November 26, 2024 to combine Materials Management and Pharmacy accounts in order to qualify for a higher Vizient tier in an effort to achieve greater cost savings. Delays were encountered as a result of extended negotiations with the vendor, requiring extensive review and coordination between staff.
The Vizient Supplier Agreement includes agreeing to Governing Law/Dispute Resolution provisions stating that all matters arising out of or related to this agreement will be governed by the law of the State of Delaware and that Baxter shall indemnify, defend, and hold harmless the Customer from and against any and all third party claims, liability, loss, damage, and all related costs which may be sustained or incurred by any Customer Representative to the extent relating to or arising from Baxter’s gross negligence or willful misconduct. Additionally, Baxter shall not be required to indemnify, defend or hold harmless Customer Representatives to the extent such damage or injury is caused by a Customer Representative’s negligence, willful misconduct, or breach of this agreement. Approval of this request will ensure the availability of essential IV solutions, allowing for uninterrupted patient care, proper medication administration, and compliance with hospital standards.
Baxter Healthcare Corporation is a supplier of the Vizient Group Purchasing Organization (GPO), which means that CCRMC, a Vizient member, is eligible to receive rebates and access lower pricing. This purchase is governed by the Vizient Supplier Agreement entered into between Vizient Supply, LLC and Baxter Healthcare Corporation on January 1, 2025 (Agreement No. IV0151 and Amendment). Utilizing CCRMC's GPO membership for this purchase furthers our shared dedication to delivering high-quality, cost-effective healthcare solutions.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCRMC may face disruptions in patient care, delays in essential treatments, and potential non-compliance with hospital regulations. Additionally, the lack of necessary supplies could impact clinical operations and patient safety.