Agenda

Return

C. 68

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	August 16, 2022

Contra

Costa

County

Subject:

Amendment to Purchase Order with Cardinal Health

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/16/2022

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:

Irene M. Segovia, 925-335-7474 ext 4022

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 16, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Purchasing Agent, or designee, on behalf of the Health Services Department, to execute an amendment to Purchase Order #23365 with Cardinal Health, to increase the amount by $3,000,000 for a new total of $28,000,000 to purchase pharmaceuticals and related supplies for Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers, Martinez Detention Facility, and Contra Costa Health Plan, with no change to the original term of September 1, 2021 through August 31, 2022.

FISCAL IMPACT:

Approval of this amendment will result in expenditures of up to $3,000,000 and will be 100% funded by the Hospital Enterprise Fund I.

BACKGROUND:

Due to rising costs of Drugs and Pharmaceuticals (total annual increase 23%) and an additional prepayment deposit of $1,048,506 that is required to receive our contracted discounted pricing, the department will not have sufficient funds to pay the remaining two months of purchases with the current purchase order amount. This Cardinal Health purchase order amendment allows CCRMC to continue purchasing medications and related supplies at the best price. Contra Costa Health Plan also uses Cardinal Health as their source to provide medications for their patients through 340B plan via contract pharmacies (i.e., Walgreens). Having Cardinal as our wholesaler maximizes the cost savings for CCRMC and Clinics.

CONSEQUENCE OF NEGATIVE ACTION:

If this amendment is not approved, the Hospital Pharmacy, as well as all Ambulatory Care Pharmacies within CCRMC will not be able to receive drugs from our wholesaler, and would result in much higher cost of pharmaceuticals with other vendors.