Subject:
Title
First Amendment to the contract with Citizens Rx, LLC for Indigent Health Program Pharmacy Services.
label
Recommended Action:
Recommended Action
Approval and execution of the First Amendment to the contract with Citizens Rx, LLC for indigent health program pharmacy services
Contract No. 145-0204-B(JA) increase in the amount of $550,000.00 for a revised total contract value of $27,950,000.00, through September 30, 2020; Chairman to sign and Clerk to attest.
Body
Strategic Plan:
Ensure Public Health, Safety, and Welfare
2.2 Be a facilitator, convener, and purchaser of services for those in need
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationship and public outreach
5.3 Ensure effective and efficient delivery of county services and support
Summary:
This first amendment increases the total contract amount by $550,000.00 to provide for annual variation in pharmacy costs within the Pinellas County Health Program (PCHP).
In Fiscal Year 2017 (FY17), based on current unit costs and client levels, pharmacy costs for PCHP are at $6,030,000.00. The new 60 month not to exceed value of the contract will be $27,950,000.00. This increase is in line with the approved Administrative Budget amendment under Legistar Item #17-066D.
PCHP pharmacy costs can vary with industry trends and volume. Human Services (HS) has implemented significant quality assurance steps into the pharmacy program to help control cost variations. Some of these steps include weekly vendor calls, monthly pharmacy review with healthcare partners, implementation of a 90 day prescription requirement for maintenance medications, and proactive adjustments to reduce the use of higher priced medications and increase the use of generics. These efforts will continue to be in place and actively coordinated in FY18 to help control costs.
Background Information:
On September 10, 2015, the Board of County Commissioners approved the PCHP Pharmacy Benefit Manager contract with a term of 60 months and value of $27,400,000.00.
The pharmacy program under PCHP helps to address the medication needs of low income and homeless clients. With approximately 16,000 prescriptions dispensed each month, many of the medications aid in treating and managing chronic health conditions within the community.
Fiscal Impact:
Original contract expenditure not to exceed: $27,400,000.00
First amendment increase not to exceed: $ 550,000.00
Revised contract expenditure not to exceed: $27,950,000.00
Funding is derived through the Human Services’ Health Program Budget appropriation for FY17.
Staff Member Responsible:
Lourdes Benedict, Director, Human Services Department
Joe Lauro, Director, Purchasing Department
Partners:
Florida Department of Health in Pinellas County
Attachments:
First Amendment