REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 9, 2023
FROM
WILLIAM L. GILBERT, Director, 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. 1 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 $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 through July 11, 2024.
(Presenter: William L. Gilbert, Director, 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 additional cost of $340,600 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) 2022-23 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
This Amendment No. 1 to Asset Lease Agreement No. 22-1020 (Amendment) 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 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 2023, with a new estimated completion in the first half of 2024, pending design and State approval. Therefore, the lease is needed for a longer period.
On October 25, 2022 (Item No. 10), the Board of Supervisors (Board) approved Asset Lease Agreement No. 22-1020 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 is anticipated to be June 2023.
ARMC recommends approval of the Amendment to ensure continuity of critical MRI services at the hospital for the health and safety of County residents.
PROCUREMENT
The Board approved Vizient as the primary Group Purchasing Organization (GPO) on December 7, 2021 (Item No. 46), for five years, based on the Request for Proposals (RFP) No. AGENCY21-PURC-4090. Vizient offers competitive agreements based on RFPs evaluated using the American Bar Model Procurement Code, which is in compliance with County Procurement Policy. Vizient allows ARMC access to an extensive catalog of competitive, pre-negotiated agreements for various medical supplies and services.
After reviewing Vizient for vendors that provide mobile diagnostic imaging services, DMS was chosen because they are the only company that offered the same equipment that is currently utilized in ARMC’s Medical Imaging Department. Selecting different equipment during the project period would require the purchase of training for staff and time to train staff on temporary equipment. Therefore, DMS was chosen to maintain efficient and cost-effective continuity of service. Purchasing supports this competitive procurement based on Vizient Agreement No. XR0661.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on April 18, 2023; Purchasing (Ariel Gill, Buyer III, 777-0722) on April 19 2023; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on April 19, 2023; Finance (Jenny Yang, Administrative Analyst, 387-4884) on April 21, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on April 21, 2023.