Agenda

Return

C. 38

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	August 3, 2021

Contra

Costa

County

Subject:

Rescind Prior Board Action Pertaining to Purchase Order with McKesson Medical-Surgical, Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/03/2021

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
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Jaspreet Benepal, 925-370-5101

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 3, 2021
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

RESCIND Board action of June 8, 2021 (C.132), which pertained to a purchase order with McKesson Medical-Surgical, Inc.; and APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County a Purchase Order with McKesson Corporation, in an amount not to exceed $5,500,000 for the purchase of pharmaceuticals designated as 340B replenishment inventories dispensed through nine (9) Rite Aid pharmacies located within Contra Costa County, for the period from July 1, 2021 through June 30, 2025.

FISCAL IMPACT:

Approval of this purchase order will result in annual expenditures of up to $5,500,000 over a four-year period and will be funded 100% by Contra Costa Health Plan (CCHP) Enterprise Fund III budget. Participation in the 340 program allows the CCHP to maximize savings.

BACKGROUND:

CCHP has entered the 340B pharmacy program through the Federal Government’s Office of Pharmacy Affairs (OPA). CCHP received OPA approval to contract with nine (9) local Rite Aid pharmacies in the 340B program. This program supplies prescription medications to CCHP members at a significantly reduced-price structure governed by the OPA. The $5,500,000 request, for a four-year purchase order, maintains drug inventories for our current population.

This vendor has been used for these products since at least 2009. It provides drugs for patients at a considerable savings for CCHP. Patient prescription needs and cost savings are crucial.

On June 8, 2021, the Board of Supervisors approved item C.132, however, the contractor's name should have read McKesson Corporation not McKesson Medical-Surgical, Inc. This Board Order will rescind that incorrect Board Order and allow the Department to continue to participate in the 340B program to allow CCHP to maximize savings for pharmaceuticals through June 30, 2025.

CONSEQUENCE OF NEGATIVE ACTION:

If this Board Order is not approved the prior action with the incorrect contractor's name would remain and the contractor would not be paid for services.

VOTE OF SUPERVISORS

RECOMMENDATION(S):

FISCAL IMPACT:

BACKGROUND:

CONSEQUENCE OF NEGATIVE ACTION:

CHILDREN'S IMPACT STATEMENT: