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 to the Agreement with Agiliti Surgical, Inc. to Provide Operating Room Equipment Rentals
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Agiliti Surgical, Inc. to provide Operating Room equipment rental services, extending the term of the agreement by one year through October 22, 2026, and increasing the amount by $330,000 to a new maximum amount not to exceed $530,000.
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BACKGROUND:
Agiliti Surgical, Inc. (Agiliti) is a member of San Mateo Medical Center (SMMC)’s Group Purchasing Organization (GPO), Vizient, that ensures competitive pricing by conducting its own Request for Proposals for maximum savings. On January 31, 2023, this Board approved an agreement with Vizient to provide GPO program services to SMMC, including access to competitive pricing with vendors like Agiliti. SMMC entered into an agreement with Agiliti to provide operating room equipment rentals for the term October 23, 2024, through October 22, 2025, in an amount not to exceed $200,000.
DISCUSSION:
SMMC continues to have a critical need for operating room equipment rentals. It would be economically prudent and least operationally disruptive to increase funding to the agreement with Agiliti. The proposed agreement was sourced through the County’s GPO Vizient to obtain favorable pricing terms. This amendment is coming to this Board late due to prolonged negotiations with the vendor to finalize pricing and terms.
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).
It is anticipated that 150 Operating Room cases will be supported by Agiliti.
PERFORMANCE MEASURE:
|
Measure |
FY 2024-25 Actual |
FY 2025-26 Estimated |
|
Amount of Operating Room cases supported by Agiliti |
145 |
150 |
COMMUNITY IMPACT:
Agiliti’s continued operating room equipment rental services at SMMC, a public safety net hospital, supports health, safety and well-being of the community. Ensuring consistent access to this equipment allows our care team to provide timely, effective, and safe treatment for our patients. SMMC’s patients span a wide spectrum of races, ethnicities, gender, and gender-identities. Within the past 18 months, the largest cohorts of specialty care patients at SMMC were female (52%), Hispanic or Latino (63%), and primarily Spanish-speaking (55%).
FISCAL IMPACT:
The term of the amended agreement is October 23, 2024 through October 22, 2026. The amendment increases the amount payable under the agreement by $330,000, to an amount not to exceed $530,000, for the two-year term. Funds in the amount of $330,000 are included in the SMMC FY 2025-26 Adopted 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.