HomeMy WebLinkAboutMINUTES - 04142007 - C.75 r(!
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TO: BOARD OF SUPERVISORS '`�'-��=-��``���' Contra
FROM: John Cullen, County Administrator o' __- :, - s Costa
DATE: July 26, 2005 County
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SUBJECT: Approval of Contract with Professional Hospital Supply, Inc. Cm. 7S
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
APPROVE and AUTHORIZE the County Administrator, or his designee, to enter into an agreement
with Professional Hospital Supply, Inc., on behalf of the Health Services Department, in the amount of
$15,000,000 for the period of August 1, 2007 through July 31, 2010 for the provision of medical
equipment, medical supplies, custodial supplies, and other related medical items as needed using an
exchange cart system.
FISCAL IMPACT:
Total cost over the three year period is $15,000,000. This cost will be covered by the Enterprise
fund which is comprised of a number of funding sources, including Federally Qualified Health Center
revenue and County General Fund. The total amount is similar to the cost experienced in prior years.
Supplies are purchased through a Novation contract in order to obtain the most competitive prices
available.
CONTINUED ON ATTACHMENT: YES SIGNTUBE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECO' MMENDATIN OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURES: r
ACTION OF BO ON W -,"00 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF
THE BOARD OF SUPERVISORS ON THE DATE SHOWN.
UNANIMOUS(ABSENT /)
AYES: NOES:
ABSENT: ABSTAIN:
Contact: Dorothy Sansoe(5-1009) 0A)kWyf—
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cc: General Services Department ATTESTED
Health Services Department JOHN CU EN,CLERK OF BOARD OFISUPERVISORS
County Administration
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BY: Q , DEPUTY
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BACKGROUND:
Professional Hospital Supply Corporation (PHS) has been CCRMC's prime vendor for medical
supplies since it opened, in 1997. The principal reason for this long-standing relationship is the fact
that PHS is the only hospital supply company in California that offers a full exchange cart delivery
methodology to its customers. CCRMC, because of its lack of storage space within the hospital, put
together with a sustained high patient volume, must employ such a delivery construct.
PHS's exchange methodology works as follows:
On each unit in the hospital (e.g., ICU, Surgery, ER, Nursing Floors, Lab, Radiology, etc.) there exists
a supply cart. There are currently 79 carts in all. Each one of these carts contains enough inventory
of supplies to meet the specific needs of that unit for two days. In addition to the carts, PHS
replenishes 10 supply drawers in the hospital's Emergence Room and 162 supply trays located
throughout our clinics.
There are only three distribution companies in California who service the supply needs of hospitals.
Those are, Cardinal Health, Owens and Minor and PHS. However, only one of these companies
currently operates a full exchange cart system - PHS.
Under the full exchange cart system, the stock on each of the carts is depleted throughout the day.
Then, the partially depleted carts are removed from the hospital by PHS employees every night and
replaced with full carts. The partially empty carts are loaded onto PHS trucks. The trucks with the
partially depleted carts on board return to the PHS warehouse where a dedicated full exchange cart
crew restocks them to their full capacity and returns them the next night. And so the cycle continues,
7 days a week, 52 weeks a year.
In addition to the hospital, PHS replicates this service for several of our clinics throughout the County.
These locations include Martinez Health Center, Pittsburg Health Center, Richmond Health Center,
and the Concord and Brentwood clinics.
PHS is a "Novation" company. They are contracted, as are the other two major suppliers, Owens and
Minor, and Cardinal, with our Group Purchasing Organization (GPO.) Accordingly, the prices paid for
the supplies would be exactly the same —the lowest prices available, no matter which of the
companies is used. The big difference is that PHS is the only one of the three companies that can
deliver the supplies in the manner that required.
As an approved Novation vendor, PHS can obtain products from a variety of vendors and deliver
them quickly. Their company representative and office staff have been an invaluable resource for
HSD in finding needed medical supplies. PHS charges for their services based on a percentage of
the cost of the cost of supplies (13.5% for year one, 14% for year two, and 14.5% for year three), in
addition to a monthly fee.