To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment #76-809-2 with Medline Industries, LP
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment Agreement #76-809-2 with Medline Industries, LP, an Illinois limited partnership, effective January 1, 2025, to amend Contract #76-809 (as amended by Amendment Agreement #76-809-1) to include additional rebate terms for end-to-end distribution services at Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers and to extend the termination date from June 30, 2025 to January 31, 2029 with no change in the payment limit of $2,116,950.
FISCAL IMPACT:
Approval of this Amendment will not impact the payment limit of $2,116,950 funded 100% by Hospital Enterprise Fund I. (No rate increase)
BACKGROUND:
Medline Industries, LP is the primary distribution for medical and non-medical supplies and products for CCRMC and Health Centers. They have been awarded a Vizient Group Purchasing (GPO) Agreement for the distribution of contracted and non-contracted supplies. As a Vizient member, CCRMC and Contra Costa Health Centers receive enhanced value form their participation in the Medline/Vizient GPO.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. CCRMC’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. Contractor is a member of the Vizient GPO and per Administrative Bulletin 600.3, GPO members are exempt from solicitation requirements.
On December 13, 2022, the Board of Supervisors approved Contract #76-809 with Medline Industries, LP, to commit to purchase 90% of medical supplies, surgical supplies, laboratory supplies, diagnostic imaging supplies, cleaning supplies, disaster supplies and miscellaneous minor equipment for CCRMC and Contra Costa Health Center for the period December 1, 2022 through June 30, 2025. This distribution agreement allows the department to receive discounted prices and rebates.
On February 27, 2024, the Board of Supervisors approved Contract Amendment Agreement #76-809-1 with Medline Industries, LP, effective February 1, 2024, to increase the payment limit to $2,116,950 for end-to-end distribution services at CCRMC and Contra Costa Health Center locations to with no change in the term.
Approval of Contract Amendment Agreement #76-809-2 will allow Contractor and County to include additional rebate terms for end-to-end distribution services, through January 31, 2029.
CONSEQUENCE OF NEGATIVE ACTION:
If this Amendment is not approved, rebates terms in the Contract will not accurately reflect the agreed upon terms and intent of both parties.