REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
August 20, 2019
FROM
LAURIE ROZKO, Director, Purchasing Department
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Extend Group Purchasing Organization Membership with Vizient, Inc.
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Agreement 08-88 with Vizient, Inc. to extend the County's Group Purchasing Organization membership for the use of competitively bid contracts at tiered pricing, at no cost for membership, from September 1, 2019 to August 31, 2020.
(Presenter: Laurie Rozko, Director, 387-2074)
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
This action will not result in the use of Discretionary General Funding (Net County Cost). Membership is not fee-based, but instead enables the use of competitively bid contracts established by Vizient, Inc. (Vizient). Agency spend determines eligibility for various tiers of pricing.
Annual expenditures on contracts established by Vizient are estimated at $54 million. Vizient collects an administrative fee from its contractors based on sales volume, and provides a share back, or rebate, to its members based on agency spend. Contract expenditures, predominantly by the Arrowhead Regional Medical Center (ARMC), are funded by State Medi-Cal, Federal Medicare, private insurance, and other departmental revenue. Estimated rebates to ARMC during the extension period are $1.1 million and will be deposited in the ARMC Miscellaneous Revenue account that is used to subsidize hospital operations.
Sufficient appropriation and revenue is included in the 2019-20 ARMC adopted budget and will be included in future recommended budgets. Funding sources may change in the future pending legislat...
Click here for full text