A)
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Authorizing an Agreement with Intermountain Healthcare to provide access to Amerinet, a group-purchasing service, for San Mateo County for the term January 1, 2006 to December 31, 2008, at no cost to San Mateo County.
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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 access to Amerinet, a group-purchasing program that will enable San Mateo County, through the Purchasing Agent, to purchase services, supplies and equipment from approximately 500 vendors at discounted rates.
Performance Measures:
Measure
2006
2007
2008
Perform one annual Pricing Audit
1
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. In addition, IHC, through Amerinet, has provided the county with a quarterly shareback check that is a portion of the administrative fees received by IHC from the manufacturers. For the period January 2005 to December 2005, San Mateo Medical Center has received shareback checks totaling $45,398.66. These shareback checks are calculated at 38% of the administrative fees which we collect from any contracted vendors reporting sales to Amerinet for purchases made by SMMC.
Waiving the Bid Process would prevent any impact on existing pricing through San Mateo Medical Center and other participating departments. 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. Amerinet utilizes a formal bidding process. If your Board requires a Bid Matrix for a specific contract, Amerinet will provide documentation upon request.
County Counsel and Risk Management reviewed and approved the Agreement.
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