REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 24, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to the Agreement with Philips North America LLC for Medical Device Information Platform
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 3 to Agreement No. 21-178 with Philips North America LLC to renew software licenses and support for services that enable interfacing between patient medical devices and hospital information systems, increasing the total contract amount by $279,184 from $989,117, to $1,268,301, and extending the term for an additional five years, for a total contract period of March 9, 2021 through March 8, 2031.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The cost of $279,184 is funded by State Medi-Cal, Federal Medicare, private insurance, and other departmental revenue. Funding sources may change in the future, pending legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2025-26 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
Approval of the Amendment will continue to enable the monitoring of patients for critical and life-threatening conditions. ARMC is currently utilizing 350 of the vendor's software licenses since 2021. Philips North America LLC (Philips) is the only vendor recommended by the current electronic health record system, Epic, for meeting both integration elements and surveillance requirements simultaneously.
The Agreement will allow ARMC's Radiology department to be able to continue to closely monitor patients for critical and life-threatening conditions in patients in the adult intensive care unit, burn units, and patients on mechanical ventilation devices.
On March 9, 2021 (Item No. 5), as the result of a non-competitive procurement, the Board of Supervisors (Board) approved the Agreement with CapsuleTech to purchase hardware and accessories that interface between patient medical devices and hospital information systems and software services at ARMC, in the amount of $936,875, for the period of March 9, 2021 through March 8, 2026.
On July 23, 2024 (Item No. 10), the Board approved Amendment No. 1 (Amendment) to the Agreement with CapsuleTech for the upgrade of surveillance software to integrate and connect to the Epic Rover Solution, increasing the contract amount by $15,990, from $936,875 to a new total amount of $952,865, with no change to the contract period of March 9, 2021, through March 8, 2026.
On June 10, 2025 (Item No. 12), the Board approved Amendment No. 2 to the Agreement with Philips assigning the Agreement from CapsuleTech, Inc., and to upgrade the surveillance software to integrate and connect to the electronic health system, and to increase the contract amount by $36,252 from $952,865 to $989,117 with no change to the contract period of March 9, 2021, through March 8, 2026.
ARMC recommends approval of the Medical Device Information Platform Agreement with Philips to continue providing for the safety, health, and social service needs of County residents.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on January 29, 2026; Purchasing (Veronica Pedace, Buyer III, 387-2464) on January 29, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on January 30, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on February 4, 2026.