Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment to the Agreement with Renovo Solutions, LLC to Provide Biomedical and Equipment Related Services
RECOMMENDATION:
title
Adopt a resolution authorizing an amendment to the agreement with Renovo Solutions, LLC to provide biomedical and equipment related services, increasing the maximum amount by $2,448,000, to an amount not to exceed $8,448,000.
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BACKGROUND:
On December 12, 2018, the Board approved an agreement with Renovo Solutions, LLC (Renovo) for Biomed services for San Mateo Medical Center (SMMC), Public Health, Policy, and Planning, and Correctional Health Services. Renovo was selected via a Request for Proposals (RFP) process in a competitive process in December 2018.
DISCUSSION:
Renovo supports San Mateo County Health's readiness for COVID-19 by inspecting and servicing biomedical equipment designated by the County to original equipment manufacturer (OEM) standards. By proactively ensuring that the County's designated biomedical equipment is operating at OEM specifications, Renovo's services are intended to reduce annual equipment repair costs, enhance patient safety, and extend the life of the County's biomedical equipment. Since contract inception in 2019, Renovo Solutions has added a total net of 875 pieces of equipment to their inventory for biomedical maintenance. The greatest increase in new inventory items occurred in 2020. It was associated with the COVID-19 pandemic response and the addition of a temperature monitoring system for medication and vaccine refrigeration equipment. Inventory items from the pandemic include HEPA filtration units, PAPR/CAPR air-purifying respirators, emergency ventilators, and wireless temperature measurement devices for COVID-19 symptom screening. Most of this equipment was new to SMMC, obtained after the contract was initially approved in response to the COVID-19 pandemic, and thus unbudgeted. Additional increase in cost occurred when Renovo took over several third-party contracts that were initially budgeted to other departments at SMMC, such as Sterile Processing and the Laboratory. Despite the increased cost, SMMC found that consolidating interdepartmental biomedical device maintenance into Renovo's contract is more efficient for regulatory compliance response and incremental cost savings for service provided to certain medical equipment. Of the cost increase of $2,448,000, approximately $1,600,000 is due to the elimination of other vendor contracts providing the same service and therefore is cost neutral.
Upon the end of this agreement, SMMC plans to either issue a Request for Proposals or purchase services from a participant of SMMC's chosen Group Purchasing Organization vendor Vizient.
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 preventative maintenance will be performed on high-risk biomedical equipment 100% of the time.
PERFORMANCE MEASURE:
|
Measure |
FY 2022-23 Estimated |
FY 2023-24 Projected |
|
Percentage of time preventative maintenance is performed on high-risk biomedical equipment |
100% |
100% |
FISCAL IMPACT:
The term of the amended agreement is January 1, 2019, through December 31, 2023. The amount of the amended agreement is not to exceed $8,448,000 for the four-year term. The amendment increases the amount payable under the agreement by $2,448,000. Funds in the amount of $2,448,000 are included in the SMMC FY 2022-23 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 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.