REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 11, 2024
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with DMS Imaging Inc. dba DMS Health Technologies for Rental of Mobile Magnetic Resonance Imaging Trailer
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Asset Lease Agreement No. 22-1020 with DMS Imaging Inc. dba DMS Health Technologies for the continued lease of a mobile Magnetic Resonance Imaging trailer, increasing the contract amount by $78,150, from $377,400 to $455,550, and extending the lease from a 13-month period to a 16-month period of June 12, 2023 through October 11, 2024.
(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 $78,150 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) 2023-24 budget and is included in the 2024-25 recommended budget.
BACKGROUND INFORMATION
Amendment No. 2 (Amendment) to Asset Lease Agreement No. 22-1020 (Agreement) will allow ARMC to continue providing critical Magnetic Resonance Imaging (MRI) examinations during a project to replace one of two hospital MRI machines. The current machine to be replaced is more than 20 years old and beyond its life expectancy. Renting the MRI trailer from DMS Imaging Inc. dba DMS Health Technologies (DMS) will help ensure continued patient care is not compromised during the construction process for the new machine in the hospital. The MRI Machine Replacement Project (Project) has been fully approved and funded by the County Project and Facilities Management Department (Project No. WBSE 10.10.0246). However, Project completion is now anticipated to go beyond July 2024, with a new estimated completion in the third quarter of 2024. Therefore, the Amendment to extend the term of the lease is necessary.
On October 25, 2022 (Item No. 10), based on competitive Vizient Agreement No. XR0661, the Board of Supervisors (Board) approved the Agreement with DMS, including non-standard terms, for the lease of a mobile MRI trailer in the amount of $36,800 for a one-month period commencing at the earlier of equipment set up or first patient use, which occurred on June 12, 2023.
On May 9, 2023 (Item No. 7), the Board approved Amendment No. 1 to the Agreement with DMS, increasing the contract amount by $340,600, from $36,800 to $377,400, and extending the lease from a one-month period to a 13-month period of June 12, 2023 to July 11, 2024.
ARMC recommends approval of Amendment No. 2 to ensure continuity of critical MRI services at the hospital for the health and safety of county residents.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on April 26, 2024; Purchasing (Veronica Pedace, Buyer III, 387-2464) on May 29, 2024; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on May 17, 2024; Finance (Jenny Yang, Administrative Analyst, 387-4884) on May 21, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on May 21, 2024.