To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Products and Supplies Provided by Aesculap, Inc.
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller to pay $67,014 to Aesculap, Inc. for the purchase of laparoscopic instruments at the Contra Costa Regional Medical Center (CCRMC) during the period of May 1, 2024 through June 30, 2024.
FISCAL IMPACT:
Approval of this action would result in expenditures of up to $67,014 and will be funded by the Hospital Enterprise Fund I revenues.
BACKGROUND:
Aesculap, a division of B. Braun, is a global leader in surgical instruments and medical devices. They provide a wide range of products and services including surgical instruments, sterilization containers, and endoscopic equipment. Aesculap is known for its commitment to innovation, quality, and improving patient outcomes through advanced medical technology. Aesculap is part of the Vizient Group Purchasing Organization (GPO) that provides cost-effective procurement solutions and improves clinical outcomes.
The prior purchase order #27012 with Aesculap, Inc. expired on May 1, 2024. There was a several-month delay in processing the vendor’s agreement paperwork, so the decision was made to request an emergency payment for the gap between the end of the prior agreement until a new purchase order could be established. The new purchase order #30686 is effective July 1, 2024.
The vendor is entitled to payment for the reasonable value of the products and supplies 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 purchase order, and the vendor does so to the benefit of the county, the vendor is entitled to recover the reasonable value of those products or services. The vendor has provided products and supplies at the request of the county after the original purchase order payment limit had been reached. The Department cannot pay the vendor for products rendered that exceed the purchase order limits. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $67,014 payable to Aesculap, Inc.
The requested payment covers purchases made during the period of May 1, 2024 through June 30, 2024, to address the urgent need for surgical supplies required to maintain patient care standards.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, Aesculap, Inc. will not be reimbursed for products and supplies already rendered at CCRMC.