Agenda

Return

C. 77

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	September 13, 2022

Contra

Costa

County

Subject:

Purchase Order with Cardinal Health

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 09/13/2022

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: September 13, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Purchasing Agent to execute, on behalf of the Health Services Department, a purchase order with Cardinal Health in an amount not to exceed $33,000,000 to procure pharmaceuticals and related supplies for Contra Costa Regional Medical Center (CCRMC), Contra Costa Health Centers, Martinez Detention Facility, and Contra Costa Health Plan for the period of September 1, 2022 through August 31, 2023.

FISCAL IMPACT:

Approval of this purchase order will result in an annual expenditure of up to $33,000,000 and will be fully funded by Hospital Enterprise Fund I revenues.

BACKGROUND:

On September 7, 2021, the Board of Supervisors approved agenda item C.80 to execute a purchase order (#23365) with Cardinal Health in the amount of $25,000,000 for the period of September 1, 2021 through August 31, 2022. CCRMC has had a working relationship with Cardinal Health Pharmacy Services, LLC for 40 plus years.

BACKGROUND: (CONT'D)

Cardinal Health, provides three different purchasing contracts: Wholesaler Acquisition Cost (WAC - 2052004299), Group Purchasing Organization (GPO - 2057200827) for the hospital as well as the Public Health System contract for 340B (federal-ceiling pricing for disproportionate share facilities) for ambulatory care. Furthermore, Contra Costa Health Plan uses Cardinal Health as their medication provider for their patients through the 340B plan contract pharmacies (i.e., Walgreens). Maintaining Cardinal as our wholesaler maximizes cost savings for CCRMC and Health Clinics.

Approval of the Cardinal Health purchase order renewal will allow CCRMC to continue purchasing medications and related supplies from Cardinal Health Pharmacy Services, LLC at the best price through a Vizient group purchasing contract.

CONSEQUENCE OF NEGATIVE ACTION:

If this purchase order is not approved, the CCRMC Pharmacy, as well as all Ambulatory Care pharmacies within CCHS will not be able to receive drugs from our wholesaler and the result would be a higher cost of pharmaceuticals.