Officials are calling on the Cook County Health and Hospital System board to defer a vote on a controversial purchasing plan over concerns that it would hurt local businesses.
Cook County commissioners Roberto Maldonado and Joan Patricia Murphy issued stern letters to Cook County Health and Hospital System board members yesterday on the issue. The commissioners want the system's finance committee to delay a vote on the purchasing plan scheduled for this morning.
Meanwhile, County Board President Todd Stroger called on the health system to pull back on the vote, voicing his support for minority- and women-owned businesses in the county.
Health system officials are seeking to coordinate most buying through a group purchasing organization -- a consortium of pre-approved vendors.
Officials say the move would save the health system $20 million this year, and as much as $60 million annually in the future. They have proposed signing a three-year, $500 million group purchasing contract to University Health Consortium/Novation, Inc.
Maldonado and Murphy in separate letters said the state's attorney is reviewing contract language to see if the plan violates the county's procurement ordinance.
Last week, Maldonado, the county board's contract compliance committee chairman, held a public hearing about the plan. He says working with a group purchasing organization would eliminate a fair and open bidding process.
Both the county's and health system's procurement codes state at least 35 percent of procurements must be done through minority- and women-owned businesses.
"Historically, larger contracting opportunities almost always attract multi-national bidders leaving women- and minority-owned businesses out of the process," Maldonado's letter said.
It continued, "It is my belief that the utilization of GPOs is in direct contradiction with the goals for (women- and minority-owned business) participation as set forth in the County Code."
In her letter, Murphy expressed concern that local businesses would be unable to afford a $50,000 annual group membership fee, as well as a 3 percent fee on earned profits.
"Our aim is to encourage minority participation and allow Cook County (vendors) to earn a living through the competitive process," she wrote.
A statement released last night by Stroger's office says the county's efforts would "limit contract participation to companies who are members of a GPO." However, health officials say they are not limited to doing business only with group purchasing organization members.
Stroger said local businesses deserve to have a shot at county contracts, and said the health system's proposal could undercut the county's efforts to boost minority participation.
Health system officials insist they would consider local businesses, even if the group purchasing contract is approved.
But, they say, their first inclination is to go with a vendor that offers the best price and value. A new health system procurement code, passed in April, states that local businesses are defined as those in good standing with the state, not just those operated in Cook County.
Health system spokesman Marcel Bright said the items were still slated to be voted upon as of yesterday evening.
As to whether the vote will be delayed, he said, "That's a decision the members of the finance committee will have to make."
Last week, new health system CEO William Foley told board members he expects to have a group purchasing agreement in place by September 1.
Daily News Staff Writer Alex Parker covers public health. He can be reached at 773.362.5002, ext. 17, or alex [at] chitowndailynews [dot] org.
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