To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Purchase Order with Cardinal Health Pharmacy Services, LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, a purchase order with Cardinal Health Pharmacy Services, LLC (Cardinal Health) in an amount not to exceed $39,000,000 to procure pharmaceuticals and related supplies for Contra Costa Regional Medical Center (CCRMC), Contra Costa Health Centers, Martinez Detention Facility, and West County Detention Facility for the period from September 1, 2026 through August 31, 2027.
FISCAL IMPACT:
Approval of this contract will result in annual expenditures of up to $39,000,000 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
CCRMC has had a working relationship with Cardinal Health for over 40 years. Cardinal Health provides three different purchasing contracts: Wholesaler Acquisition Cost, Group Purchasing Organization (GPO), as well as 340B (federal-ceiling pricing for disproportionate share facilities).
On August 5, 2025, the Board of Supervisors approved item C.52 to execute Purchase Order #33285 with Cardinal Health in the amount of $37,000,000 to procure pharmaceuticals and related supplies for CCRMC, Contra Costa Health Centers, Martinez Detention Facility, and Contra Costa Health Plan for the period of September 1, 2025 through August 31, 2026. The funds have increased due to the addition of a new pharmacy at the West County Detention Facility, which is scheduled to open in September 2026. On July 22, 2026 the Purchasing Agent approved the continued use of Cardinal Health Pharmacy Services, LLC.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCRMC, Health Centers, and Detention Facilities will not be able to receive drugs from our wholesaler and the result would be a much higher cost of pharmaceuticals.