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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Health System
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DATE:
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May 25, 2010
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BOARD MEETING DATE:
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June 29, 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
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Susan Ehrlich, MD, MPP, Chief Executive Officer, San Mateo Medical Center
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SUBJECT:
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Agreement with Diamond Pharmacy Services
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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 an Agreement with Diamond Pharmacy Services to provide comprehensive pharmaceutical services for Correctional Health Services for the term of July 1, 2010 through June 30, 2013, for a maximum obligation of $1,976,798; and
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2)
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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), 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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Correctional Health Services has contracted with Diamond Pharmacy Services (Diamond) to provide professional comprehensive pharmaceutical services since December 2001. On June 28, 2005, your Board approved an Agreement with Diamond for $2,713,000 for a three-year term from July 1, 2005 through June 30, 2008. On May 20, 2008, your Board approved an Amendment to the Agreement with Diamond to extend the term from July 1, 2005 through June 30, 2010, and increase the contract funding by $1,647,333. On April 13, 2010, your Board approved a Second Amendment to the Agreement to enable Correctional Health Services to receive 340B discount pricing. In March 2010 an RFP was released. Diamond was the sole respondent and was selected to provide Correctional Health Services with pharmaceutical services.
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DISCUSSION:
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This Agreement ensures continuation of the excellent and efficient pharmaceutical services provided by Diamond. Diamond will provide professional comprehensive pharmaceutical services for all prescription, non-prescription, and intravenous solutions as ordered by Correctional Health 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 physicians. Only approved drugs, biologicals, and other related items will be sent to the facilities. All medication will be dispensed and labeled inmate/ patient specific in complete compliance with all current local, state, and federal laws, regulations, provisions, and court orders. Prescriptions will be dispensed and sent in only the amount prescribed by the physicians.
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The 340B medication discount program will be used when applicable. The 340B Drug Pricing Program resulted from the Veterans Health Care Act of 1992, which is codified as Section 340B of the Public Health Service Act. Section 340B limits the cost of covered drugs to certain federal grantees, federally-qualified health center look-alikes and qualified disproportionate share hospitals. Due to a recent Federal Register Notice allowing 340B covered entities to contract with more than one pharmacy to provide patient drugs purchased at 340B prices, Correctional Health Services has been participating in the 340B program under the covered entity of the San Mateo Medical Center as of April 5, 2010.
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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.
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This Agreement has been reviewed and approved by County Counsel and Risk Management.
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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by ensuring pharmaceutical services are available for inmates and juveniles at County correctional facilities at the most competitive prices. It is anticipated that the number and percent of mentally ill inmates engaging in treatment by receiving medications will remain stable over the next year.
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Performance Measure:
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Measure
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FY 2009-10
Estimate
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FY 2010-11
Projected
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Number and percent of mentally ill inmates engaging in treatment by receiving medications
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1,035/45%
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1,035 / 45%
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FISCAL IMPACT:
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The term of the Agreement is July 1, 2010 through June 30, 2013. The Agreement maximum is $1,976,798 and is funded through Net County Cost. The costs associated with this contract have been included in the Correctional Health Services FY 2010-11 tentatively Adopted Budget.
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