COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

 

DATE:

September 15, 2009

BOARD MEETING DATE:

October 20, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Chief Executive Officer
San Mateo Medical Center

SUBJECT:

Amendment to Agreements with Anchor Drugs and Baneth’s Pharmacy

 

RECOMMENDATION:

Adopt a Resolution:

1.

Authorizing the President of the Board to execute an Amendment to the Agreement with Anchor Drugs to provide pharmacy services to patients of the Mike Nevin Health Center, increasing the amount by $128,000 for a maximum fiscal obligation of $488,000, and allowing for additional dispensing fees, for a term of April 1, 2007 through March 31, 2010; and

   

2.

Authorizing the President of the Board to execute an Amendment to the Agreement with Anchor Drugs to provide pharmacy services to patients of the South San Francisco Health Center, increasing the amount by $75,000 for a maximum fiscal obligation of $435,000, and allowing for additional dispensing fees, for a term of April 1, 2007 through March 31, 2010; and

   

3.

Authorizing the President of the Board to execute an Amendment to the Agreement with Anchor Drugs to provide pharmacy services to patients of the Fair Oaks Family Health Center, increasing the amount by $150,000 for a maximum fiscal obligation of $510,000, and allowing for additional dispensing fees for a term of April 1, 2007 through March 31, 2010; and

   

4.

Authorizing the President of the Board to execute an Amendment to the Agreement with Baneth’s Pharmacy to provide pharmacy services to patients of the Willow Clinic, increasing the amount by $90,000 for a maximum fiscal obligation of $450,000, allowing for additional dispensing fees and extending the term by three months to March 31, 2010 for a term of January 1, 2007 through March 31, 2010.

   

BACKGROUND:

Anchor Drugs (Anchor) and Baneth’s Pharmacy (Baneth) are responsible for ordering, storing, inventory and dispensing of medications to eligible patients of the Mike Nevin Health Center (Nevin), South San Francisco Health Center (SSF), Fair Oaks Family Health Center (Fair Oaks) and Willow Clinic (Willow).

 

On January 1, 2009, the Health Plan of San Mateo (HPSM) became the third-party administrator (TPA) for the Access Care for Everyone (ACE) Program. As TPA, HPSM has taken over the claims adjudication process. When each claim is adjudicated various dispensing fees are charged which were not included in the current Agreements.

 

DISCUSSION:

The Nevin and SSF Clinics have experienced more than a 20% increase in volume, thus causing funding to be expended faster than expected. These amendments modify the respective agreements to permit services to continue to be provided at the anticipated service levels. A Request for Proposals (RFP) is being prepared for pharmacy services and will be issued prior to the expiration of the existing Agreements. The Agreement with Willow is extended to facilitate the starting of all new Agreements on the same date. County Counsel has reviewed and approved the Resolution and Amendments as to form.

 

Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing medications to eligible patients at reduced or no cost. Medication provided accurately and in a timely manner reduces the need for hospital visits and admissions, which is an indicator of quality patient care.

 

Performance Measure:

Measure

FY 2008-09
Actual

FY 2009-10
Projected

Percentage of prescriptions accurately provided in a timely fashion

100%

100%

 

FISCAL IMPACT:

The term of each Anchor Agreement is April 1, 2007 through March 31, 2010. The term of the Baneth Agreement is January 1, 2007 through March 31, 2010. The amount payable under the Anchor Agreement for the Nevin Clinic is increased by $128,000 to a new maximum obligation of $488,000. The Anchor Agreement for the SSF Clinic is increased by $75,000 to a new maximum obligation of $435,000. The Anchor Agreement for the Fair Oaks Clinic is increased by $150,000 to a new maximum obligation of $510,000. The Baneth Agreement for the Willow Clinic is increased by $90,000 to a new maximum obligation of $450,000. Funds to pay for these services are included in the SMMC FY 2009-10 Adopted Budget. Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care are covered by the County’s General Fund contribution to SMMC.