REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 13, 2026
FROM
JOSHUA DUGAS, Director, Department of Public Health
SUBJECT
Title
Amendment to Non-Financial Memorandum of Understanding with the California Department of Public Health for Participation in the 340B Drug Pricing Program
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 1 to non-financial Memorandum of Understanding No. 25-584 with the California Department of Public Health, Sexually Transmitted Disease Control Branch, for participation in the 340B drug pricing program, updating the term to align with the underlying federal grant period, and updating the parties’ responsibilities.
2. Authorize the Assistant Director of Public Health, to execute Amendment No. 1 to Memorandum of Understanding with the Department of Public Health, Sexually Transmitted Disease Control Branch, as the Authorizing Officer of the 340B drug pricing program.
3. Direct the Assistant Director of the Department of Public Health to transmit the executed Amendment No. 1 to Memorandum of Understanding to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Joshua Dugas, 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 and Stakeholders.
FINANCIAL IMPACT
Approval of this Item will not result in the use of Discretionary General funding (Net County Cost). Amendment No. 1 to Memorandum of Understanding (MOU) No. 25-584 (Amendment) is non-financial in nature. The 340B drug pricing program (340B program) MOU allows the Department of Public Health (DPH) to purchase medications and receive supplies at reduced prices, and to receive 340B program training and technical assistance from the California Department of Public Health (CDPH).
BACKGROUND INFORMATION
The MOU with CDPH enables DPH to participate in the 340B program in effort to reduce the incidence and transmission of sexually transmitted infections (STIs) throughout the region. The purpose of the 340B program is to reach a greater number of patients, to provide more comprehensive services, including treatment, and reduce health disparities.
The 340B program was created by Congress in 1992 to help hospitals and other entities provide care to low-income patients and communities by federally mandating pharmaceutical manufacturers to sell certain outpatient drugs at a discount to qualified participating health organizations. In addition, only covered entities specified in Section 340B(A)(4) of the Public Health Service Act are eligible to participate, including sexually transmitted disease clinics and recipients of federal grants authorized under the Section 318 of the U.S. Public Health Services Act. DPH is a recipient of federal grants and currently operates four Federally Qualified Health Centers and a mobile unit, which qualify as covered entities eligible for the 340B program.
On August 5, 2025 (Item No. 58), the Board approved MOU No. 25-584, with the California Department of Public Health, Sexually Transmitted Disease Control Branch, for participation in the 340B program.
The recommended Amendment No. 1 to MOU No. 25-584 updates the period of the MOU to align with the underlying grant period for CDPH’s Strengthening STD Prevention and Control for Health Departments grant (Federal Award No. 1H25PS005127), as well as adding a requirement that the CDPH STD Control Branch provide a copy of the underlying Notice of Award upon DPH’s request.
As required by CDPH, the MOU must be reviewed and executed by the Authorized Officer on file with the CDPH STD Control Branch. For DPH, this is currently the DPH Assistant Director. Either party may terminate this MOU at any time, effective immediately, by providing the other party with written notification.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Adam Ebright, Deputy County Counsel, 387-5455) on December 23, 2025; and County Finance and Administration (Iliana Rodriguez, Administrative Analyst, 387-4205) on December 23, 2025.