REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
December 16, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Agreement with Medtronic USA, Inc. for Enabling Technologies Products
End
RECOMMENDATION(S)
Recommendation
Approve Agreement with Medtronic USA, Inc. for its enabling technologies products, including non-standard terms, for the purchase of ventriculoperitoneal shunts, catheters and neurological accessories that are compatible with the Stealth Station™ System, for an amount not to exceed $2,500,000 from January 1, 2026 through December 31, 2028.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
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 $2,500,000 is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. Funding sources may change in the future pending any 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
The Agreement will allow ARMC to purchase ventriculoperitoneal shunts, catheters and other neurological accessories specifically compatible with the Stealth Station™ System (System) from Medtronic USA, Inc. (Medtronic), which is used for minimally invasive spinal, orthopedic and neurological procedures. The System provides advanced visualization to assist with locating anatomical structures for open surgical procedures and surgeries that are performed through the skin.
The Agreement with Medtronic for its enabling technologies products is its standard commercial contract with terms negotiated by both parties, that deviate from the standard County terms as follows:
1. Payment terms are Net 30 days.
• County standard payment terms are Net 60 days with no interest or late payment penalties.
• Potential Impact: County standard processing time is 60 days or more. Failing to pay Net 30 days may result in a material breach of the Agreement, which could allow Medtronic to terminate the Agreement and seek other legal remedies.
2. Medtronic limits its general indemnity obligation to claims caused by a product defect or the negligent act or willful omission of Medtronic in performance of its obligations.
• The County standard contract general indemnity provision requires the contractor to indemnify, defend, and hold County harmless from third party claims arising out of the acts, errors or omissions of any person.
• Potential Impact: Medtronic's indemnity obligation is more limited compared to the standard County general indemnity obligation. In the event a claim arises that falls outside the scope of Medtronic's limited indemnity obligation, the County could be financially responsible for the defense of the claim and any resulting judgment/settlement.
3. Venue is in the state or federal courts of California.
• County Policy 11-05 requires venue for disputes in Superior Court of California, County of San Bernardino, San Bernardino District.
• Potential Impact: Having a venue in another county in California may result in additional expenses that the County might not have incurred if venue was in San Bernardino County.
ARMC recommends approval of this Agreement, including the non-standard terms, as the purchase of the products will provide for the safety and health needs of County residents by ensuring that surgeries that require precise anatomy location and probe positioning can be optimally performed.
PROCUREMENT
The Purchasing Department supports this non-competitive procurement based on equipment/system compatibility. These accessories are proprietary products designed for the System.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387- 5455) on November 18, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on November 18, 2025; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on November 19, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on November 20, 2025; and County Finance and Administration Finance (Jenny Yang, Administrative Analyst, 387-4884) on November 24, 2025.