COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

DATE:

April 27, 2010

BOARD MEETING DATE:

May 25, 2010

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:

Agreement with Ted’s Village Pharmacy

RECOMMENDATION:

Adopt a Resolution:

1.

Authorizing the President of the Board to execute an Agreement with Ted’s Village Pharmacy to provide pharmacy services to patients of San Mateo Medical Center for a term of May 1, 2010 to April 30, 2013, with a maximum amount payable of $250,000; and

2.

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) 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.

BACKGROUND:

A Request for Proposals (RFP) for pharmacy services was conducted in January 2010. Seven vendors responded to the RFP. Two of the vendors who responded to the RFP, Anchor Drugs and Baneth’s Pharmacy, were approved by your Board on April 27, 2010. San Mateo Medical Center (SMMC) is recommending that the County contract with another responder, Ted’s Village Pharmacy, due to the location of the pharmacy in relation to SMMC clinics and its willingness to participate in the federal 340B Drug Pricing Program.

DISCUSSION:

This Agreement provides 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 FY 2010-11 to $11.25/prescription in FY 2012-13. The actual cost of medications is not included in this agreement; medications will be acquired by SMMC and supplied to the pharmacy.

This Agreement 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.

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. Risk Management has reviewed and approved this Agreement. County Counsel has reviewed and approved this Resolution and Agreement as to form.

This contract was not presented to the Board with Anchor Drugs and Baneth’s Pharmacy because their contracts were expiring at the end of March. The Health System recently enrolled 500 uninsured County residents in the Access and Care for Everyone (ACE) coverage and patient assistance programs. ACE provides access to the 340b pharmacy purchasing related savings. A contract is needed with Ted’s Village Pharmacy to service these new ACE enrollees.

Approval of this Agreement contributes 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 within 24 hours.

Performance Measure:

Measure

FY 2009-10
Estimate

FY 2010-11
Projected

Percentage of prescriptions accurately provided within 24 hours

100%

100%

FISCAL IMPACT:

The term of the Agreement is May 1, 2010 through April 30, 2013. The maximum fiscal obligation under the Agreement is $250,000. Funds in the amount of $13,900 have been included in the SMMC FY 2009-10 Adopted Budget. Funds in the amount of $100,000 are included in the SMMC FY 2010-11 Recommended Budget. Similar arrangements will be made for future budget years.

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.

Exhibit A

Request for Proposal Matrix

1.

General Description of RFP

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.

2.

List key evaluation criteria

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

3.

Where advertised

San Mateo Medical Center Website

www.sanmateomedicalcenter.org/content

4.

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

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 Village Pharmacy

Walgreen’s Pharmacies

5.

Total number sent to prospective proposers

10

6.

Number of proposals received

7

7.

Who evaluated the proposals

Gary Horne, Director of Pharmacy

C. J. Kunnappilly, Chief Medical Officer

Toni Bultler, Clinic Manager

Srija Srinivasan, Special Ass’t to the County Mgr.

8.

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

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

Ted’s Village Pharmacy

29 W 25^th Ave, San Mateo, CA 94403

Walgreen’s Pharmacies

101 North 1^st Ave, Suite 2800, Phoenix, AZ 85003