Agenda

Return

C. 82

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	August 7, 2018

Contra

Costa

County

Subject:

Purchase Order with Cardinal Health Pharmacy Services, LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/07/2018

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

Candace Andersen, District II Supervisor

Contact:	Jaspreet Benepal, 925-370-5101
cc:	Tasha Scott Marcy Wilhelm Irene Segovia

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 7, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Purchasing Agent to execute, on behalf of the Health Services Director, a Purchase Order with Cardinal Health Pharmacy Services, LLC in an amount not to exceed $30,000,000 to purchase pharmaceuticals and related supplies for the Contra Costa Regional Medical Center (CCRMC) and Health Centers, Martinez Detention Facility and Contra Costa Health Plan for the period September 1, 2018 through August 31, 2019.

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 wishes to continue our 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), Vizient 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 allows CCRMC to purchase medications and related supplies at the best price through Novation contract.

Furthermore, the Contra Costa Health Plan uses Cardinal Health as its source to provide medications for its patients through 340B plan via contract pharmacies (i.e., Walgreens). Continuing with Cardinal as our wholesaler maximizes the cost savings for CCRMC and Health Centers, which is important when there is about a 40-50% increase in drug costs annually.

CONSEQUENCE OF NEGATIVE ACTION:

If this purchase order is not approved, the hospital's pharmacy, as well as all ambulatory care pharmacies within CCRMC will not be able to receive drugs from our wholesaler which would result in much higher pharmaceutical costs.