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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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December 7, 2010
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BOARD MEETING DATE:
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January 25, 2011
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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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Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Chief Executive Officer
San Mateo Medical Center
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SUBJECT:
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Agreement with MedAssets Supply Chain Systems, LLC
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RECOMMENDATION:
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Adopt a Resolution:
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A)
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Authorizing the President of the Board to execute an Agreement with MedAssets Supply Chain Systems, LLC for the purpose of providing a group purchasing program for the County of San Mateo for the term January 1, 2011 through December 31, 2015, with two one-year extensions, at no cost to the County of San Mateo;
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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, Rental and Service Agreements for the County of San Mateo for supplies, services and equipment with vendors through MedAssets Supply Chain Systems, LLC; and
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C)
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Waiving the Bid Process and Request for Proposals Process for all purposes for future goods/services provided under the Group Purchase Agreement with MedAssets Supply Chain Systems, LLC.
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BACKGROUND:
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Amerinet (Intermountain Healthcare) has been the group-purchasing organization (GPO) for the County of San Mateo for sixteen years. Through this program, the County has been able to purchase services, supplies and equipment from many vendors at discounted rates.
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DISCUSSION:
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In July 2010 San Mateo Medical Center (SMMC) conducted a Request for Proposals (RFP) process for a GPO. Of the twelve proposals sent out, five proposals were received and evaluated. Each proposal presented the menu of vendors covered and any special programs offered to system subscribers. MedAssets Supply Chain Systems, LLC (MedAssets) was selected as the clear vendor of choice based on the best market basket pricing, the most advantageous roster of vendor contracts available, and the additional services offered.
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This Agreement is with a GPO that has contracts with a diverse group of vendors who provide a range of commodities and services. MedAssets uses a formal RFP process and will provide a Bid Matrix for a specific contract upon request. Accordingly a waiver of the Bid Process and the Request for Proposals (RFP) process for all purposes for future goods/services provided under this GPO agreement is recommended. Although the focus of this agreement is on goods/services for San Mateo Medical Center and its clinics, the GPO agreement is open to other County departments to the extent allowable under MedAssets’s agreements with its vendors.
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The Agreement and Resolution have been reviewed and approved by County Counsel as to form. MedAssets’s insurance has been reviewed and approved by Risk Management.
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MedAssets 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. However, the contracts between MedAssets and its vendors cannot be changed to require compliance with County ordinances such as equal benefits, non-discrimination and employee jury service. Compliance will be requested but not required of the MedAssets vendors. The County Manager has approved a waiver of Equal Benefits, Non-discrimination and Employee Jury Service requirements, as well as the three-year limit on contracts.
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This Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing access to quality products for SMMC patients. It is anticipated that participation in a GPO will allow SMMC to pursue more advantageous pricing and meet its OBM measure of reducing cost per adjusted patient day to $872.
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Performance Measure:
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Measure
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FY 2009-10
Actual
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FY 2010-11
Projected
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SMMC cost per adjusted patient day
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$991
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$872
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FISCAL IMPACT:
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The term of the Agreement is January 1, 2011 through December 31, 2015, with two one-year extensions. There is no Net County cost to the group-purchasing agreement. An average of twelve million dollars in GPO purchases occur each year with an average of 0.5% in realized rebates.
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