COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

May 23, 2005

BOARD MEETING DATE:

June 7, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer, San Mateo Medical Center

SUBJECT:

Agreement with Siemens Medical Solutions USA, Inc.

 

RECOMMENDATION:

Adopt a Resolution:

A.

Waiving the Competitive Bid Process

B.

Authorizing the Purchasing Agent to enter into a Purchase Order with Siemens Medical Solutions USA. Inc. for a Nuclear Medicine Gamma Camera system, E. CAM – Signature Series Dual Variable system, for San Mateo Medical Center (SMMC), in an amount not to exceed $350,529.

C.

Authorizing the Purchasing Agent to enter into an agreement with Siemens Medical Solutions USA, Inc. for post warranty service maintenance, including on-demand service, for five years, for the Nuclear Medicine Gamma Camera in an amount not to exceed $221,390

 

VISION ALIGNMENT:

Commitments: Ensure basic health and safety for all; and responsive, effective and collaborative government.

Goals 5 and 20: Residents have access to healthcare and preventive care; and government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

Purchasing and maintaining this equipment will allow SMMC to provide diagnostic testing for diagnosis and treatment of certain diseases. In addition, the equipment is capable of digital signal output which will give SMMC current technology and which will enable SMMC to move collaboratively with future needs for medical imaging.

Performance Measure(s):

Measure

FY 2005-06
Actual

FY 2006-07
Projected

Reduction in turnaround time for performing cardiac procedure scans

40%

40%

For cardiac stress tests, the equipment will reduce the actual imaging time by approximately 40-50%. In performing bone scans, a high volume procedure, the dual head camera will allow simultaneous front and back image acquisition, reducing overall imaging time to half (1+ hour to 30 minutes). The current backlog of scheduled patients is approximately six weeks for non-urgent cardiac scans. Faster throughput of patients will allow increased patient volume each day and reduce this backlog.

BACKGROUND:

San Mateo County is responsible for providing necessary medical care to its medically indigent adult (MIA) population. This care includes providing diagnostic testing for diagnosis and treatment of certain diseases or conditions. The nuclear medicine gamma camera is one method of acquiring these diagnostic test results using radioactive materials and imaging devices. This discipline is also used for radioactive therapeutic treatment. The nuclear medicine component of Diagnostic Imaging performs approximately 85 procedures each month.

 

DISCUSSION:

The Nuclear Medicine gamma camera currently in use is outdated. It was acquired in 1997 and is a single head unit. The system cannot be upgraded to a dual head system, nor is it capable of digital image output and therefore cannot be integrated into a digital environment for viewing, physician interpretation, archiving images or Picture Archiving Communications System (PACS). The proposed equipment is capable of digital signal output.

The SMMC staff is requesting that your Board waive the Competitive Bid process on the basis of an extensive in-house equipment evaluation that has been conducted. Although competitive pricing is important when acquiring new equipment, the main focus of new equipment relies on improved image quality, patient throughput, expanded procedure range and the ability to meet and maintain current technological requirements. Equipment from three vendors was evaluated to find the gamma camera system best suited for patient needs at SMMC using site visits, discussions with users, published equipment specifications and independent outside comparison databases, including MD Buyline. The evaluation was completed by a team from Radiology and Imaging, including technical staff, physician and manager. The Siemens system meets all technical requirements and is priced the lowest.

Extended maintenance, five years beyond the one year warranty period, is also being offered, including on-demand service. This maintenance agreement includes all software upgrades launched by the company during term of the maintenance agreement at no additional cost and one mid-term acquisition processing workstation replacement to maintain fastest operating speed and image storage capacity. A comparison of other third-party vendors’ service rates was also conducted. Siemen’s rate is $5000 per year less.

Risk Management and County Counsel have both reviewed and approved the agreements.

 

FISCAL IMPACT:

The Nuclear Medicine Gamma Camera System will cost $350,529, including sales tax and is payable upon delivery. The Post Warranty service maintenance for the system, including on-demand service for five years, will cost $221,390 (payable at $44,278 yearly). The Maximum amount for the equipment and service maintenance will not exceed $571,919. Capital funds are included in the SMMC’s Adopted Budget for FY2004-05. Extended maintenance costs, which will begin in FY2006-07, will be included in future year budget requests.