Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with S/T Health Group Consulting, Inc. to Provide Pharmacy Consulting Services
RECOMMENDATION:
title
Adopt a resolution authorizing an agreement with S/T Health Group Consulting, Inc. to provide pharmacy consulting services, for the term of May 1, 2026 through May 31, 2029, in an amount not to exceed $350,000.
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BACKGROUND:
San Mateo Medical Center (SMMC) Pharmacy has greatly benefited from having a third party to review its formulary and purchasing practices. By analyzing purchasing data, this type of third party vendor has been making critical recommendations to reduce SMMC’s expenses. SMMC continues to have a critical need for pharmacy consulting services to assist in revamping the formulary and make sound clinical and financial decisions. In February 2026, SMMC completed a Request for Proposals for such pharmacy consulting services.
DISCUSSION:
S/T Health Group Consulting, Inc. (S/T Health) was elevated due to their experience in pharmacy consulting services and for the scope of services offered. On top of the report of expense reduction opportunities currently provided , S/T Health has also agreed to (1) collaborate with our medication wholesaler to ensure discounts are in place, and (2) secure refunds when billing errors occur. This agreement is going to this Board late due to prolonged negotiations with the vendor.
The County Attorney has reviewed and approved the resolution and agreement as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
It is anticipated that SMMC will maintain >0.5% annual savings of total purchases related to SMMC Pharmacy’s CCRx report.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Estimated |
FY 2026-27 Projected |
|
Percentage of annual savings of total purchases related to SMMC Pharmacy’s CCRx report |
>0.5% |
>0.5% |
COMMUNITY IMPACT:
S/T Health’s continued pharmacy consulting services will positively impact equitable health outcomes because delivery of pharmacy services at SMMC, a public safety net hospital, ensures safe, timely, and high-quality care to SMMC’s patients. SMMC’s patients span a wide spectrum of races, ethnicities, gender, and gender-identities. Since November 1, 2024, half of the specialty care patients at SMMC were female and half were male, with the largest ethnic cohorts being Hispanic or Latino (58%) and primarily Spanish-speaking (48%).
FISCAL IMPACT:
The term of the agreement is May 1, 2026 through May 31, 2029. The amount of the agreement is not to exceed $350,000 for the 37-month term. Funds in the amount of $18,919 are included in the SMMC FY 2025-26 Adopted Budget. Funds in the amount of $113,514 will be included in the SMMC FY 2026-27 Recommended Budget.
The payment provisions and levels of services in this contract differ from those of the previous contract due to the addition of a service that was amended to the previous contract toward the end of the latter’s term that looks at the SMMC formulary and provides us with clinical and financial recommendations for us to present to the hospital Pharmacy & Therapeutics committee. The vendor will review our formulary in full and help us streamline what we purchase. As a result of adding this service for the entire term of the new contract, the total value of the new contract represents a 19% increase compared to that of the previous contract.
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 is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.
ATTACHMENT:
RFP Matrix