COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Correctional Health Services

DATE:

May 12, 2008

BOARD MEETING DATE:

May 20, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Charlene A. Silva, Director, Health Department

Nomalee Tilman, Director, Correctional Health Services

SUBJECT:

Amendment to the Agreement with Diamond Pharmacy Services

RECOMMENDATION:

Adopt a Resolution authorizing the President of the Board to execute an Amendment to the Agreement with Diamond Pharmacy Services for pharmaceutical services, increasing the Agreement maximum by $1,647,333 for a new maximum obligation of $4,360,333 and extending the term two years through June 30, 2010.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 8: Help vulnerable people – the aged, disabled, mentally ill, at-risk youth and others – achieve a better quality of life.

The Amendment to the Agreement with Diamond Pharmacy Services contributes to this commitment and goal by providing quality and cost-effective medical care to clients of Correctional Health.

Performance Measure:

Measure

FY 2006-07
Actual

FY 2007-08
Projected

Number and percent of mentally ill inmates engaging in treatment by receiving medications

657 / 37%

1134 / 54%

BACKGROUND:

Correctional Health Services has contracted with Diamond Pharmacy Services to provide professional comprehensive pharmaceutical services since December 2001. In March 2005 Correctional Health Services conducted a Request for Proposals (RFP) for the provision of pharmaceutical services. The RFP specified that the Agreement will be for a maximum of five years, with the initial Agreement for a period of three years. Diamond Pharmacy Services was selected to continue to provide these services. They have provided excellent pharmaceutical services at very competitive prices. On June 28, 2005, your Board approved an Agreement with Diamond Pharmacy Services for $2,713,000 for a three-year term from July 1, 2005 through June 30, 2008. The original Agreement included services for Public Health in the amount of $242,000 for the Mobile Health Clinic and Edison Clinic. The Contractor has agreed to extend the term an additional two years at the current pricing structure.

DISCUSSION:

This Amendment ensures continuation of the excellent and efficient pharmaceutical services provided by Diamond Pharmacy Services. The contractor has agreed to honor the original competitive pricing structure, and the amount the Division pays is determined by the type and amount of drugs ordered. Public Health is not included in this extended Agreement because they currently obtain pharmaceuticals through the San Mateo Medical Center.

The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits. The County Manager has approved a waiver of the three (3) year maximum requirement.

FISCAL IMPACT:

This Amendment extends the term of the Agreement from July 1, 2005 through June 30, 2008 to July 1, 2005 through June 30, 2010 and increases the contract funding by $1,647,333, from $2,713,000 to a maximum obligation of $4,360,333. The maximum for FY 2008-09 is $823,667, and is included in the Correctional Services FY 2008-09 Recommended Budget, and is funded by Net County Cost. Similar arrangements will be made for FY 2009-10.