Title
Authorize the Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute renewal and amendment No. 2 to the master services agreement (A-14455) with Vizient, Inc. for participation in its no cost group purchasing program, extending the agreement an additional one (1) year period (July 1, 2025 through June 30, 2026) for a revised full agreement term of July 1, 2019 through June 30, 2026.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Chief Executive Officer for Natividad Medical Center (NMC) or a designee to execute renewal and amendment No. 2 to the master services agreement (A-14455) with Vizient, Inc. for participation in its no cost group purchasing program, extending the agreement an additional one (1) year period (July 1, 2025 through June 30, 2026) for a revised full agreement term of July 1, 2019 through June 30, 2026.
SUMMARY:
GPO stands for Group Purchasing Organization and Vizient is one of the leading GPOs in the healthcare industry. Vizient issues Requests for Proposals (RFPs) for a wide variety of healthcare supplies and services and awards Supplier Contracts to selected bidders. Volume discounts are offered to hospitals and other healthcare facilities that are members of the GPO. Utilization by Natividad Medical Center of these Vizient Supplier Contracts is free of charge but requires a committed spend volume annually. For Fiscal Year 2025-26 that spend commitment is $26,886,000. Based on historic spend, Natividad Medical Center is able to meet this commitment. Vizient does retain an “Administrative Fee” from each supplier contract it establishes that healthcare organizations are able to utilize through the GPO. The GPO then pays Natividad Medical Center a 30% “Shareback” of the Administrative Fees per the Agreement.
In addition to lower pricing for supplies from GPO, Vizient also provides Spend Analytics and Item Master Services at no charge for Natividad Medical Center.
D...
Click here for full text