REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 22, 2021
FROM
ANDREW GOLDFRACH, Interim Director, Department of Public Health
SUBJECT
Title
Amendment to Contract with Comprehensive Pharmacy Services, LLC for 340B Drug Assistance Program and COVID-19 Pharmacy Support Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4, effective July 1, 2021, to County Contract No. 18-672 with Comprehensive Pharmacy Services, LLC, for continued 340B Drug Assistance Program and COVID-19 pharmacy support services, increasing the total contract amount by $1,250,000, from $1,259,932 to $2,509,932, and extending the contract for one additional year, for the total contract period of September 1, 2018 through August 31, 2022.
(Presenter: Andrew Goldfrach, Interim Director, 387-9146)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
Approval of this item will not impact Discretionary General Funding (Net County Cost). The additional funding specific to 340B, in an amount not to exceed $300,000, will be funded by Federally Qualified Health Center (FQHC) revenue and 1991 Health Realignment. The additional pharmacists cost of $950,000 will be funded by Coronavirus Response and Relief Supplemental Appropriations Act grant funds. Adequate appropriation and revenue have been included in the Department of Public Health’s (DPH) 2021-22 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
Under the terms of the recommended amendment, DPH will continue to utilize Comprehensive Pharmacy Services, LLC (CPS) to assist with the Drug Assistance Program (340B) to ensure appropriate procedures and internal controls are developed and followed to maintain compliance with the required program mandates for an additional year. DPH currently operates FQHC’s, which qualify as covered entities eligible for the 340B Program. Participation in the 340B Program enables DPH to obtain needed medication at lower costs for eligible clients who are underinsured or uninsured.
In addition, the recommended amendment will continue to allow CPS to assist DPH with maintaining and coordinating critical medical supplies related to COVID-19, by increasing Pharmacy staff. The associated Pharmacists, in conjunction with the DPH Preparedness and Response Program (PRP), oversee and manage the necessary medication and ancillary supplies for COVID-19 emergency response to fight the pandemic. The recommended amendment extends the contract through August 31, 2022, as the need for the additional pharmacists has continued.
On August 21, 2018 (Item No. 37), the Board of Supervisors (Board) approved the non-competitive contract with CPS for a Pharmacy Management Program and to assist in the development of a 340B Drug Assistance Program, in the amount of $298,466, for the period of September 1, 2018 through August 30, 2019. The contract included options to extend the contract upon mutual agreement by both parties. On July 23, 2019 (Item No. 29), the Board Approved Amendment No. 1, updating contract language, increasing the total contract amount by $298,466 to $596,932, for the period of September 1, 2018 through August 31, 2020. On August 11, 2020 (Item No. 33), the Board approved Amendment No. 2, increasing the total contract amount by $300,000, from $596,932 to $896,932, extending the contract for the total contract period of September 1, 2018 through August 31, 2021.
On January 22, 2021, the County Chief Executive Officer executed Amendment No. 3, adding a Scope of Work for additional Pharmacists to assist DPH PRP oversee and manage the necessary medication and ancillary supplies related to COVID-19, and increasing the total contract amount by $363,000, from $896,932 to $1,259,932, with no change to the total contract period. The amendment was subsequently ratified by the Board on February 9, 2021 (Item No. 23).
Approval of this item will extend the provision of services for up to three additional pharmacists assisting with managing COVID-19 related medical and ancillary supplies through August 31, 2022, and provide for expertise and guidance in maintaining compliance of the 340B program.
PROCUREMENT
This item is considered non-competitive due to the specialized nature of the 340B Program and necessary pharmacological expertise. County Purchasing supports the continued non-competitive nature of these services from CPS.
REVIEW BY OTHERS
This item has been reviewed by Human Services Contracts (Jennifer Mulhall-Daudel, Contracts Manager, 388-0241) on May 25, 2021; County Counsel (Adam Ebright, Deputy County Counsel, 387-5455) on May 28, 2021; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on May 25, 2021; Finance (Paul Garcia, Administrative Analyst, 386-8392) on June 1, 2021; and County Finance and Administration (Tanya Bratton, Deputy Executive Officer, 388-0332) on June 1, 2021.