Adopt a Resolution Authorizing the execution of an Agreement with Intermountain Health Care to provide group-purchasing services for San Mateo Medical Center January 1, 2005 to December 31, 2005, in an amount not to exceed $2,400.
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Commitment: Responsive, effective and collaborative government.
Goal 21: County employees understand, support and integrate the County vision and goals into their delivery of services.
This agreement contributes to this commitment and goal by providing a
group-purchasing program that will enable SMMC to purchase services, supplies and equipment from approximately 500 vendors at discounted rates.
Performance Measures:
Measure
2004-05
2005-06
Perform one annual Pricing Audit
1
1
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Intermountain Health Care (IHC) has provided group-purchasing services for the Purchasing Division of the Employee and Public Services Department and Health Services for more than ten years. Through this program, the county has been able to purchase services, supplies and equipment from approximately 500 vendors at discounted rates. The county, however, is not obligated to purchase through Intermountain Health Care if it can purchase the item elsewhere at lower cost.
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IHC is the nation's leading purchasing cooperative and provides the most comprehensive group-purchasing program available in the healthcare industry since 1985. The program includes a diverse range of commodities, such as medical, surgical, lab, radiological, and therapeutic expendable supplies as well as non-medical expendable supplies, such as janitorial and office supplies. It also includes categories in office furnishings; both purchased and leased capital equipment, and home health care services.
Unlike many other purchasing groups, the majority of their contracts are "dual-awarded"; hospitals have at least two choices of vendors to purchase from, while still enjoying the accelerated discounts of members. Additionally, all contracts are re-bid every two years, thus insuring competitive pricing for Group members. In addition, IHC has provided the county with a quarterly shareback check that is a portion of the administrative fees received by IHC from the manufacturers. The shareback check has continued to increase for the county from $4,700 in the first quarter of 1999, to $5,633 in the 3rd quarter of 1999.
Without IHC’s purchasing capability, the county would incur a minimum 20% increase in the cost of supplies, services, and equipment currently tied to this contract under separate Agreements.
County Counsel and Risk Management reviewed and approved the Agreement.
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The term of this Agreement is January 1, 2005 to December 31, 2005 and the maximum amount is $2,400. Funds are included in SMMC’s FY2004-2005 Adopted Budget and funds will be included in the Budget Request for FY2005-06.
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