Title
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute a master services agreement with Vizient, Inc. for participation in its no cost group purchasing program with a retroactive agreement term of July 1, 2019 through June 30, 2022.
Report
RECOMMENDATION:
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute a master services agreement with Vizient, Inc. for participation in its no cost group purchasing program with a retroactive agreement term of July 1, 2019 through June 30, 2022.
SUMMARY/DISCUSSION:
GPO stands for Group Purchasing Organization and Vizient is one of the leading GPOs in the healthcare industry. It solicits for supplies and services and awards Supplier Contracts to selected bidders. GPOs offer volume discounts to hospitals and other healthcare facilities. A couple of years ago Vizient was born as a leading Group Purchasing Organization (GPO) with the merging together of Novation and MedAssets, two of the largest GPOs specializing in Healthcare. This new master agreement replaces the old MedAssets agreement from 2014 and contains updated terms and conditions.
Services included in this agreement include evaluation of supply chain operations resulting in lower supply costs and maximum savings on medical supplies and services. Through useful software tools and reports Natividad will be able to analyze purchasing trends within the healthcare field in order to maximize the GPO's number of contracted vendors and NMC's choices for vendor selection.
In addition to lower pricing for supplies from GPO, Vizient will also provide Spend Analytics and Item Master Services. Spend Analytics consist of expenditures analysis, validation of savings and opportunities for further savings. Item Master Services validates product codes for appropriate billing and improve reimbursement.
There are no direct costs paid to Vizient from NMC for GPO services. Instead...
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