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 Contract with Firstsource Solutions USA, LLC for the Provision of Secondary Placement of Accounts
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Contract No. 24-661 with Firstsource Solutions USA, LLC, for the provision of secondary placement of accounts receivable, to add fee application language, with no changes to the contract amount not-to exceed $3,000,000, or term of July 23, 2024, through July 22, 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). The cost of $3,000,000 will be paid on a contingency basis as a percentage of the amount collected. Adequate appropriation and revenue are included in the Arrowhead Regional Medical Center (ARMC) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
Firstsource Solutions USA, LLC (Firstsource) reviews, follows up on, and collects payments for outstanding Accounts Receivable (AR) commercial accounts, on behalf of ARMC, after the accounts have aged more than 360 days. The AR accounts are placed with Firstsource after the accounts have been effective for 360 days. With Amendment No. 1 (Amendment), fees will be applied to all payments received by Firstsource or directly by ARMC after the fifth day that the account has been placed with Firstsource. The addition of the five-day grace period allows adequate time to review incoming payments and properly assign before any fee obligation is assessed supporting optimization of ARMC’s revenue cycle and enhancing ARMC’s overall financial performance.
On July 23, 2024 (Item No. 17), as the result of solicitation No. ARMC123-ARMC-5227, the Board of Supervisors approved Contract No. 24-661 with Firstsource for the provisions of secondary placement of accounts receivable for a not to exceed amount of $3,000,000, for the contract term of July 23, 2024, through July 22, 2029.
ARMC recommends approval of the amendment to optimize ARMC’s revenue cycle and improve financial performance to operate in a fiscally-responsible and business-like manner.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on June 15, 2026; Purchasing (Veronica Pedace, Buyer III, 387-2464) on June 16, 2026; Innovation and Technology (Don Le, Chief Information Officer, 388-5501) 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.