To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment to Purchase Order with Reliance Wholesale, 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 Department, an amendment to purchase order #28188 with Reliance Wholesale, Inc. to extend the term through June 30, 2025 with no change to the original payment limit of $325,000 for Intravenous (IV) and Pharmaceutical drugs and supplies to be used at the Contra Costa Regional Medical Center (CCRMC) and Health Centers.
FISCAL IMPACT:
Approval of this action will result in expenditures of up to $325,000 for IV and Pharmaceutical drugs and supplies through June 30, 2025 and is funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Reliance Wholesale, Inc. is a pharmaceutical company that provides CCRMC and Health Centers with medications and pharmaceutical products unavailable through the contracted wholesaler Cardinal or the direct manufacturer of these products. The U.S. has been experiencing a rapidly increasing frequency of drug shortages in the past two decades, which have caused numerous difficulties for clinicians, health care facilities, patients, and federal regulators. Drug shortages remain the most burdensome obstacle in providing optimal level of care in the healthcare industry from the medication management perspective. This problem has been intensified in the past two years in the face of a worldwide pandemic, creating yet a new level of challenge in healthcare.
Drug shortages are caused by many factors, including difficulties in acquiring raw materials, manufacturing problems, regulatory issues, business decisions, as well as many other disturbances within the supply chain. They adversely affect patient care by causing substitution of safe and effective therapies with alternative treatments, compromising or delaying medical procedures, or causing medication errors. Drug shortages also significantly burden health care providers and health care facility finances and personnel.
At CCRMC, when clinically proven, the Pharmacy Department substitutes the shorted item with compatible alternatives. However, when this is not feasible or clinically indicated, in order to optimize the standard of care, we must obtain the product via reputable resources such as Reliance Wholesale, Inc.
On June 13, 2023, the Board of Supervisors approved item C.125 to execute purchase order #28188 with Reliance Wholesale, Inc. in the amount of $325,000 for the period from July 1, 2023 through June 30, 2024.
On May 21, 2024 the Purchasing Agent approved the continued use of Reliance Wholesale, Inc. Approval of this request will allow CCRMC and Health Centers to continue procuring IV, Pharmaceutical drugs, and supplies from this vendor through June 30, 2025.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, the department will not be able to take care of its patient population at the Contra Costa Regional Medical Center and Health Centers.