To: Board of Supervisors
From: Anna Roth, 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 Department, a purchase order with Cardinal Health Pharmacy Services, LLC in an amount not to exceed $37,000,000 to procure pharmaceuticals and related supplies for Contra Costa Regional Medical Center (CCRMC), Contra Costa Health Centers, Martinez Detention Facility and Contra Costa Health Plan for the period from September 1, 2024 through August 31, 2025.
FISCAL IMPACT:
Approval of this action will result in expenditures of up to $37,000,000 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
On August 1, 2023, the Board of Supervisors approved item C.59 to execute purchase order #28641 with Cardinal Health in the amount of $33,000,000 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, 2023 through August 31, 2024. CCRMC has had a working relationship with Cardinal Health for 40 plus years.
On July 17, 2024 the Purchasing Agent approved the continued use of Cardinal Health Pharmacy Services, LLC.
Cardinal Health provides three different purchasing contracts: Wholesaler Acquisition Cost (WAC-2052004299), Group Purchasing Organization for the hospital (GPO-2057200827) as well as the Public Health System contract for 340B (federal-ceiling pricing for disproportionate share facilities) for ambulatory care.
Furthermore, Contra Costa Health Plan uses Cardinal Health as their medication provider for their patients through the 340B plan contract pharmacies (i.e., Walgreens). Maintaining this vendor as our wholesaler maximizes cost savings for CCRMC and Health Clinics.
CONSEQUENCE OF NEGA...
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