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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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San Mateo Medical Center
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DATE:
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December 1, 2008
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BOARD MEETING DATE:
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January 6, 2009
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Sang-ick Chang, MD, Chief Executive Officer
San Mateo Medical Center
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SUBJECT:
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Agreement with Intermountain Healthcare
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RECOMMENDATION:
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Adopt a resolution:
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A.
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Authorizing an Amendment to the Agreement with Intermountain Healthcare to authorize its name change to Amerinet, Inc., and to extend the term of the Agreement by two years to December 31, 2010
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B.
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Authorizing the Purchasing Agent to enter into Purchase Orders, Vendor Agreements, Lease-Purchase Agreements, Lease Agreements, and Rental Agreements for San Mateo County for supplies, services and equipment with vendors through Amerinet, Inc.
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C.
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Waiving the Request for Proposals (RFP) Process for all purposes pursuant to the Agreement with Amerinet, Inc.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government.
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Goal 21: County employees understand, support and integrate the County vision and goals into their delivery of services.
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This agreement contributes to this commitment and goal by providing access to Amerinet, a group-purchasing program that will enable San Mateo County access to services, supplies and equipment from approximately 500 vendors at discounted rates.
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Performance Measure(s):
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Measure
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2008
Actual
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2009
Projected
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2010
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Perform one annual Pricing Audit
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1
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1
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1
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BACKGROUND:
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On April 4, 2006, your Board approved an Agreement with Intermountain Health Care to provide access to Amerinet, Inc., a group purchasing service. The term of the Agreement is January 1, 2006 to December 31, 2008.
The group-purchasing program has provided services for the Health Services Department for more than 13 years. Through this program, the county has been able to purchase services, supplies and equipment from approximately 500 vendors at discounted rates. These supplies include 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. The Agreement does not bind the County to purchase through Amerinet if it can purchase a product or service elsewhere at lower cost.
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DISCUSSION:
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Amerinet began as Intermountain Healthcare, changed its name to Intermountain Amerinet and finally simplified the name using only Amerinet.
Because of a change in management in 2006, San Mateo County began to utilize Amerinet vendors during the past two years of the contract. A two year-extension to the Agreement is being requested to allow the time needed to ascertain the merits of using the program to its full advantage with regards services and/or commodities required by San Mateo County. The County Manager has approved a two-year extension beyond the previous three-year term. A Request for Proposals will be conducted in the Summer of 2010.
A waiver of the RFP process is being requested. Conducting a RFP process at this time will have an adverse effect on existing pricing through San Mateo Medical Center and other participating departments. Amernet’s purchasing capability allows San Mateo County the benefit of at least 20% savings in the cost of supplies, services, and equipment. This would not be possible under separate agreements.
This Agreement is with a group-purchasing program that contracts with a diverse group of vendors who provide a range of commodities. Amerinet uses a formal RFP process and will provide a Bid Matrix for a specific contract upon request. The contracts between Amerinet and these vendors cannot be changed to require observance to San Mateo County ordinances such as equal benefits, non-discrimination and employee jury service. These will be requested but not required of Amerinet vendors. The County Manager has approved a waiver for Equal Benefits, Non-discrimination and Employee Jury Service.
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The Health System Redesign Initiative Team and County Counsel have reviewed and approved this Agreement. Contractor has assured compliance with the County’s Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination, and equal benefits.
County Counsel and Risk Management have reviewed and approved this Agreement.
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FISCAL IMPACT:
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Amerinet has provided the County with a quarterly shareback check that is a portion of the administrative fees received by Amerinet from its vendors. For the period 2006 to 2008 San Mateo Medical Center has increased its shareback checks from $6,000 in 2006 per quarter to $16,000 per quarter.
The Amendment extends the term of the Agreement by two years. The revised term of the Agreement is January 1, 2006 to December 31, 2010. There is no net county cost.
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