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Overview of DOC Pharmaceutical Repackaging Efforts Senate Criminal & Civil Justice Appropriations

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.

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Overview of DOC Pharmaceutical Repackaging Efforts Senate Criminal & Civil Justice Appropriations

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  1. Overview of DOC Pharmaceutical Repackaging Efforts Senate Criminal & Civil Justice Appropriations January 14, 2010 1

  2. 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.

  3. 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

  4. 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.

  5. 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

  6. 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)

  7. 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

  8. 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.

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