REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 4, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Medline Industries, LP for Medical/Surgical Supplies
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4 to Agreement No. 21-790 with Medline Industries, LP, for medical/surgical distribution and Just-In-Time inventory management services, to revise the period for receiving a rebate and best pricing upon meeting a minimum purchase commitment as part of the medical/surgical supply distribution services, with no changes to the annual agreement amount of $30,000,000 or term of October 26, 2021 through October 25, 2029.
(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.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Agreement No. 21-790 (Agreement) expenditures are 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) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
On October 26, 2021 (Item No. 54), as the result of solicitation No. AGENCY21-PURC-4091, the Board of Supervisors (Board) approved the Agreement with Medline Industries, LP for medical/surgical distribution and on-site Just-In-Time inventory management services, in the amount of $30,000,000 annually, for a total period of eight years, from October 26, 2021 through October 25, 2029, with two optional one-year extensions.
On July 11, 2023 (Item No. 13), the Board approved Amendment No. 1 to the Agreement, to revise the rebate distribution timeline, with no changes to the annual contract amount of $30,000,000 or term of October 26, 2021 through October 25, 2029.
On January 13, 2026 (Item No. 14), the Board approved Amendment No. 2 to the Agreement with Medline Industries, LP to add no-cost sourcing of patient alarms to the medical/surgical supply distribution services, with no change to the annual contract amount of $30,000,000.
The Board also approved Amendment No. 3 to the Agreement on January 13, 2026 (Item No. 14) to convert to only latex-free surgical gloves and receive a rebate and best pricing upon meeting a minimum purchase commitment as part of the medical/surgical supply distribution services, with no changes to the annual contract amount of $30,000,000 and contract term of October 26, 2021 through October 25, 2029. Amendment No. 3 provides a rebate for the conversion to only using latex-free surgical gloves. ARMC must purchase 80 percent of the historical volume of surgical gloves, 192,000 pairs, to qualify for the rebate. ARMC standardized the use of latex-free surgical gloves, enabling it to meet the 80 percent purchase requirement for the rebate. The rebate provided a ten percent discount on latex-free surgical gloves for the period December 1, 2025, through May 31, 2026.
Amendment No. 3 incorrectly identified the rebate period as December 1, 2025, through May 31, 2025. Amendment No. 4 corrects this error and revises the rebate period to December 1, 2025, through May 31, 2026, which will allow ARMC to be paid the rebate for the appropriate period.
ARMC recommends approval of Amendment No. 4 to operate in a fiscally-responsible manner through the value-added incentive and rebate.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on June 30, 2026; Purchasing (Veronica Pedace, Lead Buyer, 387-2464) on July 1, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on July 10, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on July 15, 2026.