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: Agreement with Airgas, USA, LLC to Provide Gas Tank Rental Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Airgas USA, LLC to provide gas tank rental services for the term of April 1, 2026 through March 31, 2031, in an amount not to exceed $600,000.
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BACKGROUND:
A reliable supply of gases including medical oxygen, nitrogen, carbon dioxide, and other specialty gases is critical to maintaining uninterrupted clinical services and ensuring patient safety at San Mateo Medical Center (SMMC). In addition to the critical need for these gases, rental of the cylinder gas tanks is required for safe storage, transportation, and dispensing of these gases at SMMC. These tanks are designed to meet strict regulatory and safety standards.
DISCUSSION:
The proposed agreement with Airgas USA, LLC was sourced through the County’s group purchasing organization, Vizient, to obtain favorable pricing terms. Approval of this agreement will allow SMMC to continue procuring rental gas tanks to maintain the reliable supply of gases being delivered to SMMC. This agreement is going to this Board late due to prolonged negotiations with the vendor.
The County Attorney has reviewed and approved the resolution and agreement 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).
It is anticipated that 98% of the gas tanks will be delivered to SMMC on or before the requested date.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Actual |
FY 2026-27 Estimated |
|
Percentage of times gas tanks are delivered to SMMC on or before the requested date |
98% |
98% |
COMMUNITY IMPACT:
Although Airgas USA, LLC does not provide direct patient care, maintaining a reliable source of essential medical gases and gas tank rental enables SMMC to continue providing safe, timely, and high-quality care to the community. 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 agreement is April 1, 2026 through March 31, 2031. The amount of the agreement is not to exceed $600,000 for the five-year term. Funds in the amount of $30,000 are included in the SMMC FY 2025-26 Adopted Budget. Funds in the amount of $120,000 will be 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.