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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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March 18, 2011
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BOARD MEETING DATE:
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April 26, 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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Amendment No. 1 to the Agreement with MedAssets Supply Chain Systems, LLC
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RECOMMENDATION:
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Adopt a Resolution authorizing the:
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A)
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President of the Board to execute Amendment No. 1 to the Agreement with MedAssets Supply Chain Systems, LLC, the group purchasing program for the County of San Mateo, in order to add an affiliate, the Broadlane Group, Inc., to provide additional purchasing options to the County, update the Agreement’s terms, and clarify the duration of the Agreement’s initial term; and
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B)
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Chief of the Health System or designee to execute contract amendments which modify the County’s maximum fiscal obligation by no more than $25,000 (in aggregate) and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.
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BACKGROUND:
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On January 25, 2011, your Board approved an Agreement with MedAssets Supply Chain Systems, LLC (MedAssets) for the purpose of providing a group purchasing program for the County of San Mateo for the term of 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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DISCUSSION:
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MedAssets, San Mateo County’s group-purchasing organization (GPO), has contracts with a diverse group of vendors who provide a range of commodities and services. On November 16, 2010, as the original Agreement was being negotiated, MedAssets announced that it had completed its acquisition of the Broadlane Group, Inc., another GPO. MedAssets and the Broadlane Group, Inc. remain separate entities, and this Amendment will allow San Mateo County to access the Broadlane Group, Inc.’s GPO contracts as part of the overall GPO agreement between MedAssets and the County. The Amendment also updates the language of the Agreement to facilitate this change and clarifies that the already approved five-year term of the Agreement runs from February 1, 2011 through January 31, 2016.
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The Amendment and Resolution have been reviewed and approved by County Counsel as to form.
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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. 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 previously 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 Amendment contributes to the Shared Vision 2025 outcome of a Healthy Community by providing access to quality products for SMMC patients. It is anticipated that SMMC’s cost per adjusted patient day will increase from $881 to $918.
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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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$881
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$918*
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*Due to increase in operating costs
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FISCAL IMPACT:
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The updated term of the Agreement is February 1, 2011 through January 31, 2016, 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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