Agenda

Return

C. 79

To:	Board of Supervisors
From:	William Walker, M.D., Health Services Director
Date:	July 19, 2016

Contra

Costa

County

Subject:

Approve Purchase Order with Cardinal Health Pharmacy Services, LLC.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 07/19/2016

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
Federal D. Glover, District V Supervisor

ABSENT:

Karen Mitchoff, District IV Supervisor

Contact:	Anna Roth, 370-5101
cc:	T Scott M Wilhelm Crystal Grayson

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: July 19, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Purchasing Agent, on behalf of the Health Services Department, to execute a Purchase Order with Cardinal Health Pharmacy Services, LLC., in the amount of $36,000,000 to purchase pharmaceuticals and related supplies at the Contra Costa Regional Medical Center (CCRMC) and the Contra Costa Health Centers, for the period from September 1, 2016 through August 31, 2017.

FISCAL IMPACT:

100% funding is included in the Hospital Enterprise Fund I Budget.

BACKGROUND:

CCRMC is satisfied with Cardinal Health Pharmacy Services, LLC as a vendor and wish to continue the working relationship with this company. Cardinal Health Pharmacy Services, LLC, provides three different purchasing contracts: WAC (Wholesaler Acquisition Cost) accounts (Inpatient 34-18446; Outpatient 34-18765), Novation for the hospital (110459), as well as the Public Health System contract for 340B (federal-ceiling pricing for disproportionate share facilities) for ambulatory care. The Cardinal Health contract renewal will allow CCRMC to purchase medications and related supplies at the best price through Novation contract. Furthermore, the Contra Costa Health Plan uses Cardinal Health Pharmacy Services, LLC, as their source to provide medications for their patients through 340B plan via contract pharmacies (i.e., Walgreens). Having Cardinal Pharmacy Services, LLC as our wholesaler maximizes the cost savings for CCRMC and Clinics.

CONSEQUENCE OF NEGATIVE ACTION:

There is about 40-50% increase in drug cost, annually. If this Purchase Order is not approved, the CCRMC 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 of pharmaceuticals.

CHILDREN'S IMPACT STATEMENT:

Not applicable.