Transcript Senate Criminal & Civil Justice Appropriations – Overview of DOC

Overview of DOC Pharmaceutical
Repackaging Efforts
Senate Criminal & Civil
Justice Appropriations
January 14, 2010
1
What is Repackaging?
93,000 DOC inmates, $70 million drug budget, 2 million prescriptions
in 2008-2009
• Department purchases pills in large bottles.
• Mail bottles to repackager to divide into small “bingo” type cards.
Usually 30 pills.
• Cards are mailed back to four DC Pharmacies, then used to dispense
Rx to inmates.
• Purpose is so inmates have medications in transparent packages for
security reasons when they carry their own medication.
• Decreases the work load for nursing staff who administer many
medications at pill lines
• Has allowed consolidation of pharmacy services and a decrease in the
number of pharmacy staff.
Improvements in OHS Repackaging
Operations
Where We Started:
• 3 –year repackaging contract with Private
Vendor from 7/1/2006 – 6/30/2009
• Cost - $1.85 per card
• Total of about 1,400,000 cards annually
• Paid $2.7 million in 2008-2009
Efficiencies in Contracts
• Legislature has mandated greater efficiencies in
contracts.
• Makes sense to look at options.
• DOH already doing repackaging for county health
departments.
• Get the same quality for much reduced price.
Improvements in OHS Repackaging
Operations
Where We’ve Gone:
• On July 1, 2009, formed interagency agreement with Dept.
of Health - Statewide Pharmacy for repackaging services.
Plan was to move all business over on July 1, 2009.
However, only moved one-third of business, with
understanding we would fully convert after 6 months.
Cost - $.60 per card.
• Two-thirds remained with vendor for another 6 months,
until December 31, 2009.
Vendor reduced cost to $.89 per card
• Transfer delayed 30 days until January 31, 2010
Improvements in OHS Repackaging
Operations
• Cost Avoidance of $454,000
for FY 2009-2010 through November 30
• Estimated cost avoidance of $542,000
if we were paying $.60 for all cards
• Difference of $88,000 ($18,000 monthly)
Other OHS Pharmacy-Related Cost
Savings
• May 2008 De-Privatized Region IV Contract
Pharmacy (South Florida) – $2 Million Savings
- Workload Absorbed by current 3 Regional Pharmacies
with minimal staff increase
July 2008 – Changed Drug Courier from Same
Day to Overnight - $700,000 Savings
Conclusion
• We have been pleased with the quality of services and
savings by partnering with DOH.
• DOH has been a good partner.
• Plan is to move forward with converting remaining
pharmacies to DOH on February 1.