To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Products and Services provided by Agiliti Health, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay an amount not to exceed $159,610 to Agiliti Health, Inc. for rental equipment and other medical supplies provided at Contra Costa Regional Medical Center (CCRMC) during the period of January 1, 2024 through September 30, 2024.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure of up to $159,610 and will be funded by the Hospital Enterprise Fund I revenues.
BACKGROUND:
Agiliti Health, Inc. is a nationwide company that specializes in the management, maintenance, and rental of medical equipment. They partner with healthcare providers to deliver a range of services aimed at improving the efficiency, availability, and performance of medical equipment, ultimately enhancing patient care and operational efficiency.
Since 2007, the County has contracted with Agiliti Healthcare, Inc. for the rental of medical equipment and devices, such as specialty hospital beds, infusion pumps, and other medical equipment and devices.
On September 10, 2024 the Board of Supervisors approved agenda item C.123 to execute an amendment to purchase order #26455 with Agiliti Health, Inc. to increase the payment limit by $500,000 to a new payment limit of $2,500,000 with no change to the original term of October 1, 2022, through September 30, 2024.
Subsequently it was discovered that additional invoices dating back to January 2024 had not been received by CCRMC Accounts Payable. CCRMC has since advised the vendor of the proper procedure for invoice submission to ensure this does not occur in the future. Due to this administrative oversight, staff have determined that the vendor is entitled to payment for the reasonable value of the products and services under the equitable relief theory of quantum meruit. The theory provides that where a vendor has been asked to provide products or services without a valid contract, and the vendor does so to the benefit of the County, the vendor is entitled to recover the reasonable value of the products and services.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, Agiliti Health, Inc. will not be paid for products and services rendered in good faith and CCRMC will not have access to this vendor’s rental medical equipment and devices, which are necessary to carry out CCRMC medical operations.