Agenda

Return

C. 94

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	April 18, 2023

Contra

Costa

County

Subject:

Payment for Products Provided by Cardinal Health 414, LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/18/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

John Gioia, District I Supervisor

Contact:

Angela Womble, (925) 370-5338

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: April 18, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Auditor-Controller or designee, to pay an amount not to exceed $42,652 to Cardinal Health 414, LLC, for the purchase of Lymphoseek, a tracer used for Lymphoscintigraphy exams in the Diagnostic Imaging Department, for Contra Costa Regional Medical Center (CCRMC) and Health Centers for the period of December 1 2021, through December 31, 2022.

FISCAL IMPACT:

Approval of this action will result in a one-time expenditure in an amount up to $42,652 and will be funded by the Hospital Enterprise Fund I revenues.

BACKGROUND:

The utilization of injectable tracers is particularly vital to CCRMC patients as without this on-site service, our most vulnerable patients would be required to receive their Lymphoscintigraphy exam at the Veterans Department of Affairs Hospital and their Needle Localization exam at CCRMC. Providing this service on-site prevents the patient from traveling from hospital to hospital, avoiding the possibility of a tracer becoming no longer viable and an appointment having to be rescheduled.

BACKGROUND: (CONT'D)

In December 2021, there was a nationwide back order for Filtered Sulfur Colloid, an injectable tracer used for Lymphoscintigraphy exams. CCRMC found that the only available substitution, Lymphoseek, could be obtained from Cardinal Heath, LLC and was ordered presumably under the Pharmacy’s Cardinal Health purchase order. Providers in the Diagnostic Imaging Department preferred the substitution tracer. Due to administrative oversight, the department continued to order the item from Cardinal Health from December 2021 through December 2022. It was only recently discovered, when the vendor reached out regarding past due invoices, that the language in the Pharmacy’s purchase order did not permit its use for other products. The Diagnostic Imaging Department is creating a purchase order with Cardinal Health, LLC and putting actions in place to better manage the ordering and tracking of products, including 30-day follow-up tracking and review of product substitutions.

Staff have determined that the vendor is entitled to payment for the reasonable value of the products provided under the equitable relief theory of quantum meruit. The theory provides that where a vendor has been asked to provide products without a valid contract, and the vendor does so to the benefit of the County, the vendor is entitled to recover the reasonable value of those products and services. Since the department cannot pay Cardinal Health, LLC for products rendered as they lack the necessary instrument to issue payment, this request is for the Board to authorize the Auditor-Controller to issue a one-time payment to the vendor in an amount not to exceed $42,652.

CONSEQUENCE OF NEGATIVE ACTION:

If this request is not approved, Cardinal Health, LLC will not be paid for products rendered in good faith.