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 JAJCO, Inc. dba Anchor Drugs Pharmacy to Provide 340B Contracted Pharmacy Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with JAJCO, Inc. dba Anchor Drugs Pharmacy to provide 340B contracted pharmacy services for the term of January 1, 2023, through December 31, 2027, in an amount not to exceed $5,000,000.
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BACKGROUND:
The US Health Resources and Services Administration operates the 340B Drug Pricing (340B) 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.
SMMC currently has agreements with local pharmacies to permit these vendors to dispense lower-cost drugs to qualifying SMMC patients. Pharmacies that contract with the County to provide 340B Program-related prescriptions typically charge SMMC a per-prescription cost for administering and dispensing the medication; these charges exceed the actual reimbursement cost of the medications. However, given the substantial discount for drugs obtained through the 340 Program, using these vendors still save the County money and gives SMMC patients the most flexibility in terms of where and when they can fill qualifying prescriptions.
DISCUSSION:
SMMC's continued participation in the 340B Program will help address SMMC's immediate and long-term issues of providing prescription medications to the County's growing low-income population despite increasing costs. As SMMC's patient volume continues to grow, qu...
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