COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

 

DATE:

June 21, 2004

BOARD MEETING DATE:

July 6, 2004

 

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer, San Mateo Medical Center

 

SUBJECT:

Agreement with PharMerica

 

Recommendation

Resolution waiving the Request for Proposal Process and authorizing the execution of an Agreement with PharMerica.

 

Background

PharMerica has provided pharmacy services to San Mateo Medical Center (SMMC) Long Term Care since 1989. Services include all medications and IV therapy on a daily and emergency basis and consultation services. Due to SMMC’s long-term relationship with PharMerica, we have had no deficiencies in the Long Term Care pharmacy regulations through OBRA and JCAHO surveys.

 

Discussion

Patient acuity in Long Term Care has dramatically increased resulting in higher usage of specific medications and IV access to give the medications. There has also been an increase in the number of Medicare patients admitted to Long Term Care services. In addition, regulatory requirement states that Long Term Care is to have a clinical pharmacist for regular medication review. The cost of pharmacy services currently averages $28,000 a month.

The current contract between San Mateo Medical Center and PharMerica will expire June 30, 2004. A waiver of the request for the Request for Proposals Process (RFP) is being requested at this time in order to allow the continuity of services to San Mateo Medical Center Long Term Care while plans are being formulated to complete an RFP process.
A separate pharmacy contract with Medisave Pharmacies, Inc., dba Kindred Pharmacy Services, is being negotiated at this time to provide pharmacy services to Burlingame Long Term Care (BLTC). Medisave Pharmacies has been contracting with BLTC since June 2003. When San Mateo County acquired BLTC in October 2003, it was recognized that in order to provide continuity of services to the patients at BLTC, the contract with Medisave Pharmacies needed to be renewed

It is not feasible to conduct a RFP at this time. A RFP is being developed that will include both SMMC Long Term Care and BLTC and will be sent to vendors in the first quarter of 2005.

County Counsel and Risk Management have approved this Agreement.

 

Vision Alignment

This agreement keeps the commitment to Ensure Basic Health and Safety for All and goal number 5: Provide residents access to healthcare and preventive care. The agreement contributes to this commitment by providing pharmacy services, including all medications and IV Therapy, to residents of the Long Term Care Unit.

 

Fiscal Impact

The term of this agreement is from July 1, 2004 to June 30, 2005. The maximum amount of the agreement is $339,600. Funds are included in San Mateo Medical Center’s FY2004-05 Recommended Budget.