Minutes of the meeting of the Finance Committee of the Board of Directors of the Cook County Health and Hospitals System held Thursday, February 15, 2018 at the hour of 8:30 A.M., at 1900 W. Polk Street, in the Second Floor Conference Room, Chicago, Illinois. I. Attendance/Call to Order Chairman Estrada called the meeting to order. Present: Chairman Ric Estrada and Directors Robert G. Reiter, Jr. and Mary B. Richardson-Lowry (3) Directors Mary Driscoll, RN, MPH; Ada Mary Gugenheim; and Emilie N. Junge Present Telephonically: Steven Scheer (non-director Member) Absent: Directors Hon. Jerry Butler (1) Additional attendees and/or presenters were: Ekerete Akpan Chief Financial Officer Douglas Elwell Deputy Chief Executive Officer, Finance and Strategy Charles Jones Chief Procurement Officer Jeff McCutchan General Counsel Deborah Santana Secretary to the Board John Jay Shannon, MD Chief Executive Officer II. Public Speakers Chairman Estrada asked the Secretary to call upon the registered public speakers. The Secretary called upon the following registered speaker: 1. Dr. Judy King Concerned Citizen III. Action Items A. Minutes of the Finance Committee Meeting, January 19, 2018 Director Reiter, seconded by Director Richardson-Lowry, moved to accept the minutes of the Finance Committee Meeting of January 19, 2018. THE MOTION CARRIED UNANIMOUSLY. B. Contracts and Procurement Items (Attachment #1) Charles Jones, Chief Procurement Officer, provided an overview of the requests presented for the Committee s consideration. The Committee reviewed and discussed the requests. Page 1 of 28
Minutes of the Meeting of the Finance Committee Thursday, February 15, 2018 Page 2 III. Action Items B. Contracts and Procurement Items (continued) Douglas Elwell, Chief Executive Officer of Finance and Strategy, provided additional information. With regard to request number 9, Mr. Jones noted that there is an error on the transmittal. The correct contract period is from March 1, 2018 through February 28, 2020. Mr. Jones commented on the requests relating to the purchase of medical equipment for the Central Campus Health Center (request numbers 6, 8, 10, 11, 12, 13, 14 and 17). He stated that, even though some of those requests reflect as sole source, there was a series of design meetings held approximately eighteen (18) months ago with the chairs of the departments, project manager, architect and equipment planner. Following that, his department and value analysis director got involved with the chairs; they went through and worked with Dr. Claudia Fegan, Chief Medical Officer, and the department chairs to make sure the organization obtained the equipment that was necessary for the new building. He noted that there are over 90 vendors for between 1200-1500 line items of equipment that has to be procured by next month, in order to meet the lead time to have equipment in place for when the construction reaches substantial completion at the end of June. With regard to request number 14, Director Richardson-Lowry commented on the sole source classification. She stated for the record that this leaves her wanting. There are two (2) categories for sole source: 1) expertise, no one else can do it, and 2) fact-based emergent circumstances. For this item, because the contract does not fit either category of justification, and she does not have an adequate response, she will abstain. With regard to request number 16, Mr. Elwell stated that this is a sole source because it is a proprietary matter. Although the organization uses several companies like this one for recruitment, the company controls the website and one can only use those services through them. Director Richardson-Lowry indicated that, by using the word proprietary on the transmittal, then all will understand that there is an exclusivity there. She stated for the record that this was not the case with the prior sole source contract that was discussed earlier (request number 14). Mr. Elwell stated that, for request number 14, the administration will subject the contract to the value analysis process, to make sure CCHHS is getting the best pricing and fit for the organization. With regard to request number 18, Mr. Elwell stated that CCHHS continues to try to work with the City and others to enhance what is available in behavioral health across the community. One of the challenges is that the City has had difficulty in recruiting psychiatrists; at this point they only have one (1) permanent psychiatrist who only works in one (1) of their clinics. CCHHS administration believes that CCHHS can provide more stability and bring those clinics into the broader context of all behavioral health in the community; therefore, CCHHS is working with the City to provide CCHHS psychiatrists, by either utilizing in-house staff or through a contractual manner. The plan is to stabilize those clinics and eventually get them on CCHHS electronic medical record system so patients can be coordinated throughout the community and at the different health sites. Director Richardson-Lowry requested that the Contract Compliance outcomes for all of the requests be reported back to the Committee through the Chair. Director Reiter, seconded by Director Richardson-Lowry, moved the approval of request numbers 1 through 18, as amended, and subject to completion of review by Contract Compliance, where appropriate. THE MOTION CARRIED. Director Richardson-Lowry abstained and voted PRESENT on request number 14. C. Any items listed under Section III Page 2 of 28
Minutes of the Meeting of the Finance Committee Thursday, February 15, 2018 Page 3 IV. Report from Chief Procurement Officer A. Report of emergency purchases (Attachment #2) Mr. Elwell provided information on the two (2) emergency purchases made. With regard to the emergency purchase with Batir-Evolve IV, Mr. Elwell stated that the vendor was selected through a Request for Proposals process, and that the procurement followed the normal process. However, as the contract was being prepared for Board approval, staff narrowly missed the timing to be able to get it on the Board Agenda for approval on January 26 th. Because this is a time-sensitive and critical matter relating to the construction of the Cook County Health Center, it was processed as an emergency purchase. With regard to the emergency purchase with Evolent Health, Mr. Elwell stated that the administration has been working for quite a while to be able to get into the Blue Cross Blue Shield (BCBS) HMOI product. When BCBS finally agreed, suddenly CCHHS had to be up and running to accept the plan members by January 1 st. BCBS has a lot of rules, so the administration looked to Evolent as probably the only way to get it up and running in that time frame. He noted that the administration is also trying to leverage what it is already doing with Evolent, so a lot of the setup fees would get waived and a lot of the costs per member would be lower. Following discussion, Director Richardson-Lowry requested that the administration report back to the Committee within this quarter on progress on this matter. V. Report from the Chief Financial Officer Metrics Financials through November 2017 Mr. Elwell stated that the administration anticipated having the November financials presented at this meeting, but they are not yet ready. He reminded the Committee that CCHHS went onto the new Oracle system on December 1 st ; it is taking a little bit longer to reconcile the new system to the previous systems used. He expects to have that reconciled and have the financials in time for the March 2 nd Board Meeting. Chairman Estrada requested that the new Finance Chair have a preview and conversation regarding the financials before they are sent to the Board. Mr. Scheer recommended that the Committee should see those financials before the Board receives them. VI. Adjourn As the agenda was exhausted, Chairman Estrada declared the meeting ADJOURNED. Respectfully submitted, Finance Committee of the Board of Directors of the Cook County Health and Hospitals System XXXXXXXXXXXXXXXXXXXXXX Ric Estrada, Chairman Page 3 of 28
Minutes of the Meeting of the Finance Committee Thursday, February 15, 2018 Page 4 Attest: XXXXXXXXXXXXXXXXXXXXXX Deborah Santana, Secretary Follow-up / Requests: Request: Follow-up: Follow-up: Request that Contract Compliance outcomes for the requests presented be provided to the Committee. Page 2 Regarding Evolent contract relating to BCBS HMOI product, a request was made for an update to the Committee during this quarter on the progress. Page 3 Regarding November financials for March 2 nd Board Meeting, they should be previewed by the new Committee Chair, and the Committee should receive them before the Board Members. Page 3 Page 4 of 28
Cook County Health and Hospitals System Finance Committee Meeting Minutes February 15, 2018 ATTACHMENT #1 Page 5 of 28
COOK COUNTY HEALTH AND HOSPITALS SYSTEM ITEM III(B) FEBRUARY 15, 2018 FINANCE COMMITTEE MEETING CONTRACTS AND PROCUREMENT ITEMS Request # Vendor/Entity Service or Product Fiscal impact not to exceed: Method of acquisition Total # of bidders/ RFP responses / GPO companies available Affiliate / System Begins on Page # Accept Grant Renewal 1 Illinois Department of Public Health Service - Lead Poisoning Case Management with Environmental Inspections Grant renewal amount: $171,800.00 n/a n/a CCDPH 3 Amend and Increase Contract 2 The Pickens Kane Companies Service - move management, warehousing and moving services $231,772.00 This request - noncompetitive process leveraging existing contract Original contract - competitive RFP process in 2017/5 responses) System 4 Extend and Increase Contract 3 Aramark Healthcare Support Services, LLC Service - ambulatory facilities services $401,857.92 This request - noncompetitive process leveraging existing contract Original contract - competitive RFP process in 2011/3 responses) System 5 Negotiate and Execute Contract 4 PUSH Wellness Solutions Inc. Service - interactive text communications with members $750,000.00 Comparable Government Procurement n/a Managed Care 6 Execute Contracts 5 Boston Scientific Corporation 6 Cardinal Health 7 CDW Government Product - clinical supplies for urology, surgery and interventional radiology $3,500,000.00 GPO 10 System 7 Product - medical equipment for Central Campus Health Center $1,244,867.64 GPO 4 System 8 Product - hardware, switches $775,111.06 GPO 2 System 9 Page 6 of 28
COOK COUNTY HEALTH AND HOSPITALS SYSTEM ITEM III(B) FEBRUARY 15, 2018 FINANCE COMMITTEE MEETING CONTRACTS AND PROCUREMENT ITEMS Request # Vendor/Entity Service or Product Execute Contracts (continued) 8 Lombard Instrument Fiscal impact not to exceed: Method of acquisition Total # of bidders/ RFP responses / GPO companies available Affiliate / System Begins on Page # Product - ophthalmology medical equipment $773,652.18 Sole Source n/a System 10 9 Becton Dickinson Diagnostic Systems Product and Service - equipment, maintenance, reagents and controls for culture testing $380,181.12 GPO 2 System 11 10 Johnson Controls Inc. 11 Cynosure 12 GE Healthcare 13 Henry Schein Medical 14 W. Nuhsbaum 15 Patten Industries, Inc. d/b/a Patten Power Systems Product - closed-circuit television and access control systems $292,042.00 GPO 2 System 12 Product - two (2) Cynergy Vascular Laser Workstations $221,250.00 Sole Source n/a System 13 Product - electrocardiograph $212,526.40 GPO 3 System 14 Product - dental equipment $199,297.82 GPO 2 System 15 Product - microscopy and imaging products $180,960.60 Sole Source n/a System 16 Service - maintenance and repair of emergency generators $174,987.00 Sole Source n/a SHCC, CORE 17 16 Health Forum / HealthCareerCenter.c om Service - recruiting advertising for employment $165,000.00 Sole Source n/a System 18 17 Carl Zeiss, Inc. Product - ophthalmology medical equipment $162,238.78 GPO 2 System 19 Execute Intergovernmental Agreement 18 City of Chicago Service - CCHHS to provide psychiatrists for City of Chicago Mental Health Clinics n/a n/a System 20 Page 7 of 28
Page 8 of 28
Page 9 of 28
Page 10 of 28
Page 11 of 28
Page 12 of 28
Page 13 of 28
Page 14 of 28
Page 15 of 28
Page 16 of 28
Page 17 of 28
Page 18 of 28
Page 19 of 28
Page 20 of 28
Page 21 of 28
Page 22 of 28
Page 23 of 28
Page 24 of 28
Page 25 of 28
Cook County Health and Hospitals System Finance Committee Meeting Minutes February 15, 2018 ATTACHMENT #2 Page 26 of 28
Page 27 of 28
Page 28 of 28