TITLE
Recommendation to adopt Specifications No. RFQ HE21-102 and award contracts to Aron Pharmacy Corporation, dba Bixby Pharmacy of Long Beach, CA; Good Life Pharmacy Inc., dba Aviva Pharmacy of Long Beach, CA; and Walgreen Co., of Deerfield, IL, to serve as contract pharmacies to dispense eligible drugs to qualifying patients under the 340B Contract Pharmacy Program, in a total annual amount not to exceed $650,000 for two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and
Increase appropriations in the Health Fund Group in the Health and Human Services Department by $437,000, offset by 340B Pharmacy Program revenue. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with Aron Pharmacy Corporation, dba Bixby Pharmacy (Bixby Pharmacy), Good Life Pharmacy Inc., dba Aviva Pharmacy (Aviva), and Walgreen Co., to dispense eligible drugs to qualifying patients under the 340B Contract Pharmacy Program.
In 1992, Congress enacted Section 340B of the Public Health Service Act. Section 340B requires pharmaceutical manufacturers to enter into an agreement, called a Pharmaceutical Pricing Agreement (PPA), with the Secretary of Health and Human Services. Under the PPA, the manufacturer agrees to provide front-end discounts on covered outpatient drugs purchased by specified providers who are “covered entities,” that serve the nation’s most vulnerable patient populations. The purpose of the 340B Program is to enable covered entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.
On September 4, 2018, the City Council authorized contracts with Wellpartner, LLC (Wellpartner) and Bella Vida Pharmacy, Inc. (Bella Vida), for the purpose of launching the 340B Contract Pharmacy Program, to purchase outpatient prescription drugs at preferential, reduced prices to offset deficits in the HIV Clinic, as we...
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