Agenda

Return

C. 59

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	August 1, 2023

Contra

Costa

County

Subject:

Purchase Order with Cardinal Health

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/01/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Karin Stryker, (925) 370-5141

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 1, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, a purchase order with Cardinal Health in an amount not to exceed $33,000,000 to procure pharmaceuticals and related supplies for Contra Costa Regional Medical Center (CCRMC), Contra Costa Health Centers, Martinez Detention Facility, and Contra Costa Health Plan for the period of September 1, 2023 through August 31, 2024.

FISCAL IMPACT:

Approval of this purchase order will result in expenditures of up to $33,000,000 and will be fully funded by Hospital Enterprise Fund I revenues.

BACKGROUND:

On September 13, 2022, the Board of Supervisors approved agenda item C. 77 to execute a purchase order (#26118) with Cardinal Health in the amount of $33,000,000 to procure pharmaceuticals and related supplies for CCRMC, Contra Costa Health Centers, Martinez Detention Facility, and Contra Costa Health Plan for the period for the period of September 1, 2022 through August 31, 2023. CCRMC has had a working relationship with Cardinal Health for over 40 years.

BACKGROUND: (CONT'D)

Cardinal Health provides three different purchasing contracts: Wholesaler Acquisition Cost (WAC-2052004299), Group Purchasing Organization for the hospital (GPO-2057200827) as well as the Public Health System contract for 340B (federal-ceiling pricing for disproportionate share facilities) for ambulatory care.

Furthermore, Contra Costa Health Plan uses Cardinal Health as their medication provider for their patients through the 340B plan contract pharmacies (i.e., Walgreens). Maintaining this vendor as our wholesaler maximizes cost savings for CCRMC and Health Clinics.

CONSEQUENCE OF NEGATIVE ACTION:

If this purchase order is not approved, the hospital pharmacy, as well as all ambulatory care pharmacies within CCRMC will not be able to receive drugs from our wholesaler and the result would be a much higher cost for pharmaceuticals.