Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise Rogers, Chief, Health System
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with Cardinal Health 132, LLC for 340B Discount Pharmacy Drug Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Cardinal Health 132, LLC for 340B discount pharmacy drug services for the term of October 1, 2017 through December 31, 2022, in an amount not to exceed $10,000,000.
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BACKGROUND:
The US Health Resources and Services Administration operates the 340B Drug Pricing Program, which requires drug manufacturers to provide outpatient drugs to eligible health care organizations at significantly reduced prices. Because San Mateo Medical Center (SMMC) participates in the 340B Program, certain SMMC patients can fill medication prescriptions at SMMC or pharmacies that contract with SMMC at a significantly reduced cost to the County. In March 2016, SMMC was informed by Safeway, that it would no longer occupying the retail pharmacy space in the Fair Oaks Health Center (FOHC). In September 2016, SMMC completed a Request for Proposals for a 340B Contract Pharmacy to be located in FOHC and Cardinal Health 132, LLC (Cardinal Health) submitted the winning proposal. The County's Real Property division will be executing a lease agreement with Cardinal Health for the pharmacy space located in FOHC separately.
DISCUSSION:
In accordance with applicable regulations, SMMC must enter into a separate agreement with each pharmacy that provides services for the County under the 340B Program. This agreement will allow Cardinal Health to dispense prescriptions using 340B Program pricing at the FOHC location. SMMC's patient volume continues to grow; quality pharmacy care is a critical component of both effective treatment and prevention of future medical costs.
The County's Contract Compliance Com...
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