Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment No. 8 to the Agreement with CareFusion Solutions, LLC to Provide Automated Medication Dispensing Equipment and Pharmacy Inventory Control System Services
RECOMMENDATION:
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Adopt a resolution authorizing Amendment No. 8 to the agreement with CareFusion Solutions, LLC to continue to provide automated medication dispensing equipment and pharmacy inventory control system services, extending the term of the agreement by five months through March 31, 2027, and increasing the amount of the agreement by $300,000 to an amount not to exceed $2,380,000.
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BACKGROUND:
In June 2019, San Mateo Medical Center (SMMC) and Health Information Technology completed a Request for Proposals to replace the automated medication dispensing equipment and add an inventory storage and control system. CareFusion Solutions, LLC (CareFusion) was chosen to upgrade and fulfill the pharmacy modernization requirements because of their familiarity with SMMC’s current automated dispensing equipment, as well as over 30 years of experience working with government entities and partnerships across hospital systems.
This Board approved an agreement with CareFusion on September 15, 2020 for the term of September 15, 2020 through October 31, 2026, in an amount not to exceed $2,000,000. There have been several amendments, taking this agreement to an amount not to exceed $2,080,000.
In February 2026, SMMC completed a Request for Proposals to replace the current automated medication dispensing equipment, inventory storage and control system, and Becton, Dickinson and Company on behalf of CareFusion Solutions, LLC was selected due to their extensive experience working with government entities and hospital systems. The new agreement for automated medication dispensing equipment, inventory storage, and control system will begin on November 1, 2026.
DISCUSSION:
Installation, implementation, and integration of the new automated medication dispensing equipment, inventory storage, and control system will take place over the course of several months. The project will be completed in multiple phases, and the overall implementation is expected to continue through March 31, 2027. This amendment will extend the current agreement - also with CareFusion - by five months, through March 31, 2027 and increase the current agreement by $300,000 to cover the transitional period.
The County Attorney has reviewed and approved the resolution and amendment as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
County Procurement has approved a waiver request for a 78-month term for this agreement.
It is anticipated that the percentage of record-keeping accuracy for controlled substances will be 100%.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Actual |
FY 2026-27 Estimated |
|
Percentage of record-keeping accuracy for controlled substances |
100% |
100% |
COMMUNITY IMPACT:
An automated medication dispensing system improves patient safety at SMMC, a public safety net hospital, by reducing medication errors, speeding up the dispensing process, assisting with medication inventory management, and reducing drug waste. SMMC’s patients span a wide spectrum of races, ethnicities, gender, and gender-identities. Since November 1, 2024, half of the specialty care patients at SMMC were female and half were male, with the largest ethnic cohorts being Hispanic or Latino (58%) and primarily Spanish-speaking (48%).
FISCAL IMPACT:
The term of the amended agreement is September 15, 2020 through March 31, 2027. The amendment increases the amount payable under the agreement by $300,000 to an amount not to exceed $2,380,000 for the 78-month term. Funds in the amount of $300,000 are included in the SMMC FY 2026-27 Recommended Budget.
Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.