Agenda

Return

C.100

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	June 7, 2022

Contra

Costa

County

Subject:

Payment for Rental Equipment Provided by Agiliti Health, Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/07/2022

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Ronny Leffel, 925-550-2299

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: June 7, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

AUTHORIZE the Auditor-Controller, or designee, to pay up to $144,789 to Agiliti Health, Inc. for the rental of medical devices and equipment provided to Contra Costa Regional Medical Center (CCRMC) during the period of October 1, 2021 through December 31, 2021.

FISCAL IMPACT:

Approval of this action would result in a one-time expenditure of $144,788.46 and will be funded by the department's American Rescue Plan Act (ARPA) allocation.

BACKGROUND:

On April 26, 2022, item C.82 was approved by the Board of Supervisors for payment to Agiliti Health, Inc. in the amount of $135,432. This amount was a miscalculation of the 78 invoices spanning the period of October 1, 2021 through December 31, 2021. Ratification to the new payment amount of $144,788.46 will allow complete payment of past due invoices for this period. No other changes are required.

BACKGROUND: (CONT'D)

CCRMC has rented hospital beds, infusion pumps, and other medical equipment and devices from Agiliti Health, Inc. since 2007. They have provided competitive pricing through the Vizient Group Purchasing Organization (GPO) Contracts. Agiliti Health Inc. has demonstrated their reliability for providing fast, on-site medical equipment deliveries, which has minimized disruptions to the delivery of patient care, leading to better clinical outcomes for our patients.

As a direct result of treating COVID patients, the hospital experienced higher acuity levels and an increased length of stay. The Sterile Processing Department (SPD) did not anticipate the higher demand for equipment and specialty bed rentals and had exhausted their budget. To avoid this situation from occurring again, SPD has a resource in place that is accountable for monitoring the budget to ensure the department stays on target or proactively provides the business case when additional funding is required. Due to this oversight the vendor was not paid by CCRMC for equipment rentals provided in good faith. Therefore, CCRMC has determined that Agiliti Health, Inc. is entitled to payment for the

value of the supplies provided under the equitable relief theory of quantum meruit. The theory provides that where a vendor has been asked to provide products or services without a valid purchase order, and the vendor does so to the benefit of the recipient, the vendor is entitled to recover the reasonable value of those products or services.

CONSEQUENCE OF NEGATIVE ACTION:

If this request is not approved, CCRMC will be unable to pay Agiliti Health, Inc. for equipment provided in good faith, and clinicians will no longer be able to place physician orders for equipment essential to the patient’s treatment plan, placing the patient’s health and safety at risk.