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HomeMy WebLinkAboutMINUTES - 05012001 - C.43 TO: BOARD OF SUPERVISORS FROM: William Walker, M.D. , Health Services Director By: Ginger Marieiro, Contracts Administrator �' Contra ot Costa nt DATE: April 18, 2001 ' '` l.an„ �n4rA [OUli'N.Sy COty SUBJECT: Approval of Contract Amendment Agreement #27-087-6 with Pharmaceutical Care Network (PCN) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION: Approve and authorize the Health Services Director, or his designee (Milt Camhi) , to execute on behalf of the County, Contract Amendment Agreement #27- 087-6 with Pharmaceutical Care Network (PCN) , effective March 1, 2001 to amend Contract #27-087-5 to modify the payment provisions to allow the Contractor to provide additional pharmacy administration services by the addition of three new subparagraphs (10) , (11) and (12) , to read as follows : (10) On-Line Prior Authorization (PA) $3 . 50 per PA (Key Data Entry only) (11) Prior Authorization Clinical Review $17 . 50 per PA Review (12) Participating Pharmacy Audits 15% of recoveries FISCAL IMPACT: This Amendment will modify the payment provisions to allow the Contractor to provide additional pharmacy administration services in the form of prior authorizations for high cost pharmaceuticals . Pharmaceutical costs savings for the first year of the program are projected at $250, 000 . The additional costs associated with the Contractors provided services are projected at approximately $4 , 300 . The fiscal impact of the participating pharmacy audit program is unknown except that 85% of the recoveries resulting from this program will be returned to the County. BACKGROUND/REASON(S) FOR RECOMMENDATION(S) : The Health Plan has an obligation to provide certain specialized professional health care services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. Pharmaceutical .Care Network (PCN) provides cost effective and efficient distribution of needed pharmaceutical supplies to support the health care needs of Health Plan members . On January 18 , 2000 , the Board of Supervisors approved Contract #27-087-5 with Pharmaceutical Care Network (PCN) , for the period from February 1 , 2000 through January 31, 2002 , for the provision of pharmacy administration services for the Contra Costa Health Plan. Approval of this Contract Amendment Agreement #27-087-6 will modify the Contract payment provisions to allow the Contractor to provide additional pharmacy administration services, through January 31, 2002 . CONTINUED ON ATTACHMENT: Y S SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE —�/ PPROVE OTHER 1 SIGNATURE S ACTION OF BOARD N APPROVED AS RECOMMENDED 2( OTHER VOTE OF SUPERVISORS `- �-1,,,,n ` I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENTJJ� AND.CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED JOHN SWEE ,CLERK OF THE BOARD OF SUPERVISO AND COUNTY ADMINISTRATOR Contact Person: Milt Camhi (313-6004) CC: Health Services Dept. (Contracts) Auditor-Controller Risk Management BYRigh I DEPUTY Contractor