Agenda

Return

C. 40

To:	Board of Supervisors
From:	William Walker, M.D., Health Services Director
Date:	April 26, 2016

Contra

Costa

County

Subject:

McKesson Corporation Purchase Order amendment

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/26/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Patricia Tanquary, 313-6004
cc:	T Scott M Wihelm Mary Buscaglia

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: April 26, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

Approve and authorize the Purchasing Agent, on behalf of the Health Services Department, to amend the Purchase Order with McKesson Corporation #F-000345 effective May 1, 2016 to increase the total amount by $3,500,000 for a new total amount not to exceed $6,500,000 for the purchase of pharmaceuticals designated as 340B replenishment inventories dispensed through ten (10) Rite Aid pharmacies and one (1) City Center pharmacy located within Contra Costa County, for the period July 1, 2015 through June 30, 2017.

FISCAL IMPACT:

100% Funding is included in the Enterprise Fund III budget. Participation in the 340B program allows the Health Plan to maximize savings.

BACKGROUND:

Contra Costa Health Plan (CCHP) has entered into the 340B pharmacy program through the Federal Government’s Office of Pharmacy Affairs (OPA). CCHP received OPA approval to contract with ten (10) local Rite Aid pharmacies and one (1) City Center pharmacy in the 340B program. This program supplies prescription medications to CCHP members at a significantly reduced price structure governed by the OPA.

BACKGROUND: (CONT'D)

The increased funding to the existing purchase order, is necessary due to the Affordable Care Act Medi-Cal expansion program which continues to enroll Medi-Cal members at a higher than planned rate and unforeseen higher specialty drug costs.

CONSEQUENCE OF NEGATIVE ACTION:

This Purchase Order allows the County to purchase drugs under the 340B Drug Pricing Program, resulting in savings of approximately 70% compared to traditional pharmacy pricing.

CHILDREN'S IMPACT STATEMENT:

Not applicable.