COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

July 6, 2005

BOARD MEETING DATE:

July 26, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

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

SUBJECT:

Agreement with PharMerica

RECOMMENDATION:

Adopt a Resolution

1.

Authorizing the execution of an Agreement with PharMerica to provide

pharmaceutical services and infusion services to patients of San Mateo

Medical Center Long Term Care and Burlingame Long Term Care, for the term of July 1, 2005 to June 30, 2008, in an amount not to exceed $1,692,000

2.

Authorizing the Chief Executive Officer of San Mateo Medical Center to execute Amendments not to exceed $25,000

VISION ALIGNMENT:

Commitment: Ensure Basic Health and Safety for All

Goal(s): Provide residents access to healthcare and preventive care.

The agreement contributes to the goal by providing pharmacy services, including all medications and IV therapy, to residents of San Mateo Medical Center Long Term Care and Burlingame Long Term Care.

Performance Measure(s):

Measure

FY 2005-06
Projected

FY 2006-07
Projected

FY2007-08 Projected

Percent of time that medication for Long Term Care is delivered timely.

95%

98%

98%

Percent of time that drug regimen review is provided monthly

100%

100%

100%

Timely delivery of pharmacy services ensures efficient care to SMMC and Burlingame Long Term Care residents. A constant drug regimen review of patient charts assures appropriateness of drug therapy for each patient and awareness of any drug side effects protecting the patient from adverse drug reactions.

BACKGROUND:

Regulatory requirement states that Long Term Care is to have a clinical pharmacist

for regular medication review and administration.

SMMC has two contracts providing pharmaceutical services. Pharmerica provides services to SMMC Long Term Care and Medisave Pharmacies, Inc., dba Kindred Pharmacy Services provides services to Burlingame Long Term Care. Both contracts expired June 30, 2005. Both Agreements are included in the Continuing Resolution your Board approved on July 11, 2005

DISCUSSION:

In April 2005, San Mateo Medical Center (SMMC) conducted a Request for Proposal (RFP) process for pharmacy services. Medisave and PharMerica, who submitted proposals, gave a presentation of their services to SMMC and Burlingame Long Term Care staff. As a result of the RFP, the contract to provide pharmacy services at both SMMC and BLTC has been awarded to PharMerica.

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. Since the inception of SMMC’s

long-term relationship with PharMerica, we have had no deficiencies from regulatory

agencies such as Omnibus Budget Reconciliation Act of 1987 (OBRA) and Joint

Commission on Accreditation of Healthcare Organizations (JCAHO).

PhaMerica’s presentation of their outstanding quality services was clearly defined. They provide extensive educational programs for all staff and their processes around safe medication delivery is above standard. During their presentation, PharMerica introduced Medmate, an automatic barcoding system for refills, which is a handscanner that scans the prescription bar code and transmits the information to PharMerica for refills, further reducing the risk of errors. SMMC will evaluate the advantages and costs of including this tool. If this tool is fundamental to providing pharmacy services to SMMC and Burlingame Long Term Care patients, an amendment will be presented to your Board in 2006.

County Counsel and Risk Management have reviewed and approved the Agreement.

FISCAL IMPACT:

The term of the agreement is from July 1, 2005 to June 30, 2008. The maximum amount of the agreement is $1,692,000 for the three-year term. Funds are included in San Mateo Medical Center’s FY2005-06 Recommended Budget and will be included in future year budget requests.

1.

General Description of RFP

Pharmaceutical Services for San Mateo Medical Center and Burlingame Long Term Care

2.

List key evaluation criteria

1. Full breakdown of costs

2. Adequate staff to provide services

3. Evidence of ability to provide full scope of services

4. Clearly defined services

5. Flexibility of services

6. Evidence of systems in place to provide specific

service ie timely delivery of medications/supplies

7. Evidence of successful regulation compliance,

8. Knowledge of Title 22/OBRA requirements for

Long Term Care pharmacy service,

9. Availability of clinical pharmacist

10. Quality improvement measures in place

11. Evidence of required documentation

12. Key factor that may be unique to this firm that

goes above/beyond basic services required

3.

Where advertised

N/A

4.

In addition to any advertisement, list others to whom RFP was sent

It was sent to the two Pharmaceutical vendors in the Bay Area that specialize in Long Term Care pharmacy services

5.

Total number sent to prospective proposers

2

6.

Number of proposals received

2

7.

Who evaluated the proposals

Vice President, Ancillary and Support Services

Vice President, Long Term Care Services

Medical Director of Long Term Care

8.

In alphabetical order, names of proposers (or finalists, if applicable) and location

Medisave Pharmacies, Inc.,

dba Kindred Pharmacy Services

145 West Daly Street

Mountain View, CA 94041

PharMerica

32980 Alvarado-Niles Road #836

Union City, CA 94587