University Medical Center of Southern Nevada
Board of Hospital Trustees
AGENDA ITEM
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Petitioner: |
Mason Van Houweling, Chief Executive Officer |
Recommendation:
title
Approve and authorize the Chief Executive Officer to sign the Commitment Agreements for specialty and non-specialty pharmaceutical distribution services with Cardinal Health 108, LLC and Cardinal Health 110 & 112, LLC, and execute the extension options and future amendments within the not-to-exceed amount of the Agreements; or take action as deemed appropriate. (For possible action)
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FISCAL IMPACT:
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Fund #: |
5420.000 |
Fund Name: |
UMC Operating Fund |
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Fund Center: |
3000717100 |
Funded PGM/Grant: |
N/A |
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Amount: |
NTE $60 million per year (combined total for both contracts) |
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Description: |
Specialty and Non-Specialty Pharmaceutical Distribution Services |
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Additional Comments: |
9/1/2026 to 8/31/2031; with 60 days prior written notice, UMC has the right to terminate the Agreement(s) without cause after the later of: (i) 48 months after the Effective Date; or (ii) 6 months prior to the Expiration Date (as defined in Exhibit B of the HealthTrust Agreement) |
BACKGROUND:
Since September 2021, UMC has had an agreement with Cardinal Health 108, LLC and Cardinal Health 110 & 112, LLC (collectively called “Cardinal Health”) to provide Specialty and Non-Specialty pharmaceutical distribution services, respectively, to UMC’s affiliated pharmacies (the Services).
This request is to approve the two (2) new Commitment Agreements (Agreements) with Cardinal Health to continue to provide the Services. These Agreements are required under HPG in order for UMC to obtain competitive contract pricing and maintain adequate allocation of pharmaceutical products for its patients.
The Agreements will commence on September 1, 2026, and continue through August 31, 2029. The combined annual spend for the Services is NTE $60,000,000. Staff also requests authorization for the Hospital CEO to exercise any extension option and execute any future amendments within the not-to-exceed amount of these Agreements, if deemed beneficial to UMC.
These Agreements are being entered into pursuant to HPG contract nos. 24561 & 5956. HealthTrust Purchasing Group (HPG) is a Group Purchasing Organization of which UMC is a member. This request is in compliance with NRS 450.525 and NRS 450.530; attached is the Sourcing Letter verifying that the pricing was obtained through a competitive bid process.
UMC’s Director of Pharmacy Services has reviewed and recommends approval of these Agreements, which have been approved as to form by UMC’s Office of General Counsel.
These Agreements were reviewed by the Governing Board at their July 29, 2026, meeting and recommended for approval by the Board of Hospital Trustees.