Agenda

Return

C. 43

To:	Board of Supervisors
From:	William Walker, M.D., Health Services Director
Date:	August 9, 2016

Contra

Costa

County

Subject:

Cardinal Health Pharmacy Services LLC Purchase Order amendment

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/09/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

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

ABSENT:

Candace Andersen, District II Supervisor

Contact:	Patricia Tanquary, 313-6004
cc:	Tasha Scott M Wihelm 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: August 9, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

Approve and authorize the Purchasing Agent on behalf of the Health Services Department, to execute an amendment to the Purchase Order with Cardinal Health Pharmacy Services, LLC to add $2,000,000 for a new total of $26,000,000 for the purchase of pharmaceuticals and related supplies at the Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers, with no change in the term of September 1, 2015 through August 31, 2016.

FISCAL IMPACT:

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

BACKGROUND:

The County 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. Cardinal Health Pharmacy Services LLC., contract allows CCRMC to purchase medications and related supplies at the best price through Novation contract. Furthermore, the Health Plan uses Cardinal Health Pharmacy Services LLC as its source to provide medications for its patients through the 340B plan via contract pharmacies (i.e., Walgreens). Having Cardinal Health Pharmacy Services LLC as a wholesaler maximizes the cost savings for CCRMC and Health Centers. The request for additional funds is to cover invoices received through August 31, 2016 to avoid exceeding current blanket amount.

CONSEQUENCE OF NEGATIVE ACTION:

If this Purchase Order is not approved, Hospital Pharmacy, as well as all Ambulatory Care Pharmacies within CCRMC will not be able to receive drugs from this wholesaler and the result would be a much higher cost of pharmaceuticals.

CHILDREN'S IMPACT STATEMENT:

Not applicable.