|
|
|
|
|
|
|
|
|
|
COUNTY OF SAN MATEO
Inter-Departmental Correspondence
|
Health Department
|
|
|
DATE:
|
June 9, 2005
|
BOARD MEETING DATE:
|
June 28, 2005
|
SPECIAL NOTICE/HEARING:
|
None
|
VOTE REQUIRED:
|
Majority
|
|
|
TO:
|
Honorable Board of Supervisors
|
FROM:
|
Charlene A. Silva, Director, Health Department
|
SUBJECT:
|
Agreement with Diamond Pharmacy Services
|
|
|
RECOMMENDATION:
|
Adopt a resolution authorizing the President of the Board to execute an agreement with Diamond Pharmacy Services to provide comprehensive pharmaceutical services for Correctional Health and Public Health for the term of July 1, 2005 through June 30, 2008, in the amount of $2,713,000.
|
|
|
VISION ALIGNMENT:
|
Commitment: Ensuring Basic Health and Safety for All.
|
Goal(s): Number 8 – Help vulnerable people – the aged, disabled, mentally ill, at-risk youth and others- achieve a better quality of life.
|
|
|
This contract keeps the commitment and goal by providing pharmaceutical services to clients of Correctional Health and the Mobile / STD Clinics.
|
|
|
Performance Measure(s):
|
Measure
|
FY 2004-05
Actual
|
FY 2005-06
Projected
|
Percent of prescriptions filled that are not on the formulary.
|
n/a
|
10%
|
|
|
BACKGROUND:
|
Correctional Health Services provides the medical and psychiatric pharmaceutical needs for inmates in the County’s jail system. Public Health, through the Mobile Health Clinic and Edison Clinic, provides primary care, well-baby exams, family planning, adolescent medicine, pregnancy and STD testing and treatment.
|
|
|
It has been Correctional Health’s experience since the jail pharmacy closed that it is more cost-effective to contract for pharmacy services rather than provide them in-house. Diamond Pharmacy Services has been providing pharmaceutical services to Correctional Health and Public Health since December 2001. In March 2005, an RFP was released, resulting in three interested parties competing for the pharmacy services contract. Diamond was the successful proposer in this process.
|
|
|
DISCUSSION:
Diamond Pharmacy Services will provide professional comprehensive pharmaceutical services for all prescription, non-prescription, and intravenous solutions as ordered by Correctional Health and Mobile Clinic/Edison Clinic physicians and dentists, including, but not limited to, medications for topical, oral, IV and injectable use, inhalers and suppositories. Generic substitutions will be provided when available and approved by the physician. Only approved drugs, biological, and other related items will be sent to the facilities. All medications will be dispensed and labeled inmate specific in compliance with current local, state and federal laws and regulations. Prescriptions will be dispensed in only the amounts prescribed by the physician.
|
|
|
Contractor will also assist in the development of a formulary of regularly-used drugs to ensure cost-effectiveness of treatments. It will be necessary from time-to-time to prescribe drugs not on the formulary; however, these will be kept to a minimum as indicated in the performance measure.
|
|
|
The Health Department will also be exploring options to enroll in the “340-B Pharmacy Discount Program”. This is a program offered by the federal government to provide pharmaceuticals at reduced costs to certain individuals. The contract has provisions that require the contractor to participate with the County in this program and Diamond is agreeable to ensure compliance with all program requirements. It is necessary to award the contract prior to enrollment in this program.
|
|
|
FISCAL IMPACT:
|
Total cost of the contract is $2,713,000 for the term of July 1, 2005 through June 30, 2008. Of this amount, $2,471,000 is for Correctional Health and $242,000 is for Public Health. This is an increase of 12% of the projected actual for FY 2004-05 to the budgeted FY 2005-06. This increase is due to the increased acuity of patients at the jail as well as increase usage as a result of the expanded Edison Clinic in Public Health. These expenses have been included in the Recommended FY 2005-06 Budget and there is no increase to Net County Cost. Enrollment in the 340B Program would reduce expenses and result in savings.
|
|
|
Exhibit A
Request for Proposal Matrix
|
1.
|
General Description of RFP
|
Pharmaceutical provider to juvenile and adult jail inmates/patients and Public Health clinics
|
2.
|
List key evaluation criteria
|
Quality Assurance Program
Local availability and access
Appropriate business practices, licensing, HIPAA, federal state and local laws
Demonstrates competence and experience in proposed areas
Costs of services
Appropriate personnel training levels
Feasibility and convenience
Demonstrates ability to provide services by targeted start date
Outlines pharmaceutical and financial reports available to management
Demonstrates ability to handle 340B medications/pricing
|
3.
|
Where advertised
|
The Independent Newspaper
|
4.
|
In addition to any advertisement, list others to whom RFP was sent
|
Secure Pharmacy Plus
Brentwood, TN
Elmhurst Pharmacy
San Francisco, CA
Correct RX Pharmacy Services, Inc.
Linthicum, MD
Westwood Pharmacy
Richmond, VA
PCA Corrections
Lake St. Louis, MO
Diamond Pharmacy
Indiana, PA
Correctional Medical Services
St. Louis, MO
Contract Pharmacy Services
Hatboro, PN
|
5.
|
Total number sent to prospective proposes
|
8
|
6.
|
Number of proposals received
|
3
|
7.
|
Who evaluated the proposals
|
Richard Hayward, Ph.D.
Rebecca Potts-Anderson, RN, MPA
William Taylor, RN
Ellen Sweetin, Health Services Manager
|
8.
|
In alphabetical order, names of proposers (or finalists, if applicable) and location
|
Elmhurst Pharmacy, San Francisco, CA
Diamond Pharmacy Services, Indiana, PA
Secure Pharmacy, Brentwood, TN
|