Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with CPS Solutions, LLC for Pharmacy Consulting and Audit Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with CPS Solutions, LLC to provide pharmacy consulting and audit services for the term of June 1, 2024 through May 31, 2029, in an amount not to exceed $550,000.
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BACKGROUND:
The 340B Drug Discount purchasing program allows San Mateo Medical Center (SMMC) to buy outpatient prescription drugs at a discounted rate for low-income and uninsured patients. In June 2023, SMMC completed a Request for Proposals for pharmacy consulting and audit services. CPS Solutions, LLC (CPS) was competitively selected to perform third party auditing of and support for our 340B Drug Discount purchasing program due to their offering of a comprehensive program to meet all of SMMC’s 340B compliance requirements.
DISCUSSION:
CPS has an extensive history of providing third party auditing of and support for 340B Drug Discount purchasing programs and will be able to support SMMC in the event of a program Audit. The 340B program saves the County upwards of $15,000,000 a year in drug costs so remaining compliant is critically important.
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).
The County’s Contract Compliance Committee has approved a waiver request for a five-year term for this agreement.
It is anticipated that SMMC will be 100% in compliance with the 340B drug discount purchasing program.
PERFORMANCE MEASURE:
|
Measure |
FY 2023-24 Actual |
FY 2024-25 Estimated |
|
Percentage of compliance SMMC will be with the 340B drug discount purchasing program |
70% Compliance |
100% Compliance |
EQUITY IMPACT:
CPS’s pharmacy consulting and audit services will positively impact equitable health outcomes because delivery of 340B Drug Discount purchasing program at SMMC, a public safety net hospital, addresses community need. SMMC’s patients span a wide spectrum of races, ethnicities, gender, and gender-identities. Within the past 18 months, the largest cohorts of specialty care patients at SMMC were female (56%), Hispanic or Latino (58%), and primarily Spanish speaking (55%).
FISCAL IMPACT:
The term of the agreement is June 1, 2024 through May 31, 2029. The amount of the agreement is not to exceed $550,000 for the 5-year term. Funds in the amount of $9,166 are included in the SMMC FY 2023-24 Adopted Budget. Funds in the amount of $110,000 will be included in the SMMC FY 2024-25 Recommended Budget. Similar arrangements will be made for future 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 is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.
ATTACHMENT:
RFP Matrix