REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Philips North America LLC for Additional Consulting Hours
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4 to Agreement No. 21-178 with Philips North America LLC, to purchase additional consulting hours for the Respiratory Care Services Department related to software licensing and the purchase of hardware and accessories that interface between patient medical devices and the hospital information system, increasing the total contract amount by $14,020, from $1,268,301 to $1,282,321, with no change to the 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 $14,020 is funded by State Medi-Cal, federal Medicare, private insurance, 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) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The renewal of 350 software licenses for an additional five-year term was approved on February 24, 2026. To support the effective implementation and optimization of the renewed software licenses, ARMC requires 60 additional consulting hours for project management and specialized technical support within Respiratory Care Services. These consulting hours will help ARMC staff continue to effectively monitor patients for critical or life-threatening conditions related to Respiratory Care Services.
Following the license renewal, ARMC identified the need for additional projects and specialized support to facilitate the effective optimization and utilization of the renewed software within Respiratory Care Services. The need and scope for additional support had not been established at the time of the amendment. The additional hours are now being requested to address the support requirements within the department.
Full utilization of these licenses supports ARMC’s ability to closely monitor patients with critical and life-threatening conditions, including those in the Adult Intensive Care Unit (ICU), Burn Unit, and patients receiving mechanical ventilation. Reliable monitoring and system optimization are essential to maintaining high standards of patient care and clinical oversight.
On March 9, 2021 (Item No. 5), as the result of a non-competitive procurement, the Board of Supervisors (Board) approved Agreement No. 21-178 with CapsuleTech, Inc. (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 to the Agreement with CapsuleTech for the upgrade of surveillance software to integrate and connect to Epic Rover Solution, increasing the contract amount by $15,990 from $936,875 to $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 assigning the Agreement from CapsuleTech to Philips, upgrading the surveillance software to integrate and connect to the electronic health system, and increasing 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.
On February 24, 2026 (Item No. 7), the Board approved Amendment No. 3 to the Agreement with Philips 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.
ARMC recommends approval of the Amendment as the additional consulting and project management hours provided by Philips will support staff in effectively managing the project and accessing specialized technical expertise. These services will ensure ARMC staff can continue to closely monitor patients for critical or life-threatening conditions and maintain the effective operation of patient monitoring systems.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on August 5, 2026; Purchasing (Veronica Pedace, Buyer III, 387-2464) on August 10, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on August 31, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on September 3, 2026.