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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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March 9, 2010
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BOARD MEETING DATE:
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April 27, 2010
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Chief Executive Officer
San Mateo Medical Center
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SUBJECT:
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Agreements with Anchor Drugs and Baneth’s Pharmacy
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RECOMMENDATION:
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Adopt a Resolution:
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1.
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Authorizing the President of the Board to execute three Agreements with Anchor Drugs to provide pharmacy services to patients of the Daly City Health Center, the South San Francisco Health Center, and the Fair Oaks Family Health Clinic, each for a term of April 1, 2010 to March 31, 2013, with a combined maximum amount payable of $2,775,000; and
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2.
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Authorizing the President of the Board to execute an Agreement with Baneth’s Pharmacy to provide pharmacy services to patients of the Willow Clinic for the term of April 1, 2010 to March 31, 2013, with a maximum amount payable of $800,000; and
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3.
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Authorizing the Chief of the Health System or designee to execute contract amendments which modify the County’s maximum fiscal obligation by no more than $25,000 (in aggregate) for each agreement and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.
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BACKGROUND:
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A Request for Proposals (RFP) for pharmacy services was conducted in January, 2010. Nine vendors responded to the RFP. San Mateo Medical Center (SMMC) is recommending that the County contract with two of the responders. The two vendors, Anchor Drugs and Baneth’s Pharmacy, have previously contracted with the County to provide these services. Both are recommended due to the location of the pharmacies in relation to SMMC clinics, a willingness to participate in the federal 340B Drug Pricing Program, and SMMC’s successful history of working with these two pharmacies.
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DISCUSSION:
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These agreements provide pharmacy services relating to the federal 340B Drug Pricing Program by covering the ordering, handling, storage, and dispensing of and billing for medications prescribed for eligible patients at a cost ranging from $10.25/prescription in 2010-2011 to $11.25/prescription in 2012-2013. Individual Agreements for each clinic are required by federal law. The actual cost of medications is not included in these agreements; medications will be acquired by SMMC and supplied to each pharmacy.
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Anchor Drugs will provide pharmacy services to patients of the Daly City Clinic, the South San Francisco Clinic and the Fair Oaks Family Health Center, and Baneth’s Pharmacy will provide pharmacy services to patients of the Willow Clinic.
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These Agreements will help address SMMC’s immediate and long term issue of increasing pharmaceutical costs. As SMMC’s patient volume continues to grow, quality pharmacy care is a critical component of the effective treatment of San Mateo County residents. Cost effective collaboration with community pharmacies allows for increased access and less interventional healthcare. Purchasing medications at a reduced rate permits SMMC to allocate funds to other programs.
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The Contractors have 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. Risk Management has reviewed and approved these Agreements. County Counsel has reviewed and approved this Resolution and these Agreements as to form.
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Approval of these Agreements contribute to the Shared Vision 2025 outcome of a Healthy Community by improving access to affordable healthcare. It is anticipated that 100% of prescriptions will be provided in a timely fashion.
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Performance Measure:
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Measure
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FY 2008-09
Actual
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FY 2009-10
Projected
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Percentage of prescriptions accurately provided in a timely fashion
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100%
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100%
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FISCAL IMPACT:
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The term of the Agreements is April 1, 2010 through March 31, 2013. The maximum fiscal obligation under the four agreements is $3,575,000. Funds in the amount of $1,191,667 have been included in the SMMC FY 2009-10 Adopted Budget. Funds in the amount of $1,191,667 will be included in the SMMC FY 2010-11 Recommended Budget. Similar arrangements will be made for future budget years.
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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.
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Exhibit A
Request for Proposal Matrix
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1.
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General Description of RFP
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To contract with one pharmacy for each Clinic (Willow Clinic, South San Francisco Health Center, Daly City Clinics and Fair Oaks Clinic) to provide comprehensive pharmacy services to eligible patients of the respective clinic.
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2.
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List key evaluation criteria
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Experience contracting with 340B covered entities
Compliance with regulations of the 340B program
Compliance with required County Ordinances including Equal Benefits and Jury Duty
Location with respect to clinics
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3.
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Where advertised
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San Mateo Medical Center Website
www.sanmateomedicalcenter.org/content
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4.
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In addition to any advertisement, list others to whom RFP was sent
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Half Moon Bay Pharmacy (formerly The Medicine Shoppe)
Medical Plaza Pharmacy
Anchor Drugs Pharmacies
Drew Pharmacy – Drew Center
Menlo Park Pharmacy
Rite Aid Pharmacy
CVS Pharmacy
Baneth’s Pharmacy
Ted’s Pharmacy
Walgreen’s Pharmacies
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5.
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Total number sent to prospective proposers
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10
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6.
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Number of proposals received
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7
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7.
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Who evaluated the proposals
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Gary Horne, Director of Pharmacy
C. J. Kunnappilly, Chief Medical Officer
Toni Bultler, Clinic Manager
Srija Srinivasan, Special Ass’t to the County Mgr.
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8.
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In alphabetical order, names of proposers (or finalists, if applicable) and location
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Anchor Drugs Pharmacies
481 South Grand Ave., South San Francisco, CA 94080 and
730 Woodside Road, Redwood City, CA 94061
Minims Apothecary, LLC dba Baneth’s Pharmacy
900 Willow Road, Menlo Park, CA 94025
Walgreen’s Pharmacies
101 North 1st Ave, Suite 2800, Phoenix, AZ 85003
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