A proposed ordinance introduced to the Cook County Board of Commissioners earlier this month is causing a stir among county health system board members.

At their meeting yesterday morning, Cook County Health and Hospitals System board members said they would oppose the measure. It would require vendors doing business with the system to adhere to county procurement regulations.

The ordinance comes as the health system is ironing out details of a controversial purchasing plan opposed by a number of local businesses that supply the health system. The amendment is set to be introduced to the county board’s finance committee Tuesday.

It also requires the county board to be notified of purchases larger than $100,000, with the county president, procurement officer and comptroller signing off on a contract.

“This seems to be a reaction to our decision to approve a group purchasing organization,” said board member Dr. David Ansell yesterday. “I’m concerned that this might undermine the decision that we made.”

However, a representative of the Cook County State's Attorney said yesterday at the health system board’s regular meeting that the amendment, as currently drafted, would not affect plans for to use a group purchasing organization to buy medical supplies.

Health system leaders devised their own procurement policy late last winter. It differs slightly from the county’s in that purchasing decisions are controlled by the health system board, not the county board.

Business owners, including minority and women business owners, oppose the use of a group purchasing organization, a conglomerate of pre-approved vendors. Health system leaders anticipate annual savings of up to $60 million over the next several years, including $20 million for the duration of 2009.

Business owners say they will be shut out of county business, as the group purchasing organization the county plans to work with, UHC/Novation, would not be required to use local vendors. Health system leaders say they encourage the use of local companies, but in the end will look for the vendor that supplies the best price, regardless of location.

While health system leaders say they will keep a close eye on how UHC/Novation works with minority and women-owned businesses, it’s unclear if it would be required to give 35 percent of contracts to them, as required by the county, a prospect that frightens small business owners that depend on county business.