DATE: July 13, 2021
TO: Board of Supervisors
SUBMITTED BY: Dawan Utecht, Director, Department of Behavioral Health
Delfino E. Neira, Director, Department of Social Services
SUBJECT: Retroactive Agreement with Integrated Prescription Management for Pharmaceutical Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive Agreement with Integrated Prescription Management for pharmaceutical services for persons served by the Departments of Behavioral Health and Social Services, effective July 1, 2021, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $300,000.
REPORT
Approval of the recommended action will allow for the provision of mental health related medications and other medications to medically indigent clients who receive services from the Departments of Behavioral Health (DBH) and Social Services (DSS), with no increase in Net County Cost. The agreement will be funded with a combination of Mental Health Realignment and 2011 Child Welfare Realignment. This item is countywide.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, uninsured DBH and DSS clients may experience a gap and/or delay in access to required prescribed medications.
RETROACTIVE AGREEMENT:
This recommended agreement is retroactive to July 1, 2021. The delay was due to extended contract negotiations and the retroactive date is needed to ensure there is no gap in service.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum compensation ($300,000) will be offset with a combination of Mental Health Realignment and 2011 Child Welfare Realignment. Sufficient appropriations and estimated revenues will be included in DBH’s Org 5630 and DSS’ Org 5610 FY 2021-22 Requested Budget and future budget requests for the duration of the contract.
DISCUSSION:
The Departments have relied on pharmaceuticals procured from private vendors since the transfer of Valley Medical Center (former University Medical Center) to Fresno Community Hospital and Medical Centers in 1996.
On July 14, 2015, the Board approved Agreement No. 15-318 with Envolve, Inc. for the provision of mental health-related medications to uninsured DBH adult mental health clients and children involved with DSS Child Welfare Services who do not have Medi-Cal or other methods to pay for medication
This agreement expires on June 30, 2021 and both departments would like to continue providing medically indigent adults with severe mental illness (SMI), children with severe emotional disturbance (SED), and children involved with Child Welfare Services, access to prescribed medications.
On March 3, 2021, a Request for Proposal (RFP) No. 21-036 was released to 92 vendors registered in Public Purchase who met the classification match, as well as a bidder’s list consisting of two local agencies with experience in providing pharmaceutical benefit management services within the local community. The bid closed on April 1, 2021 and one proposal was received and accepted by the Internal Services Department - Purchasing Division from Integrated Prescription Management (IPM). After evaluating the proposal, the evaluation panel consisting of a DBH Fiscal Staff Analyst, a DBH Utilization Review Specialist, and a DSS Contract Staff Analyst recommended funding of the bid submitted by IPM, as it demonstrated the ability to provide the services outlined in the RFP and satisfying the County’s intent of the program. IPM will maintain a network of pharmacies throughout the County to fill pharmaceutical prescriptions at a discounted rate to the County for medically indigent adults and children receiving services from DBH and/or DSS Child Welfare Services.
Upon approval by your Board, the recommended agreement will become effective retroactive to July 1, 2021 and may be terminated by the County, DBH or DSS Directors, or designees, or the contractor, upon providing a 60-day advanced written notice. The recommended agreement allows for changes to medication pricing, co-pay amounts, and changes to the addresses to which notices or invoices are to be sent; through the mutual written approval of County’s DBH and DSS Directors, or their designees. Additionally, the recommended agreement allows the DBH Director to approve the contractor’s term extension for each additional 12-month period, based on satisfactory performance. Modifications approved by the DBH and/or DSS Directors shall not result in any change to the maximum compensation payable under the recommended agreement, without returning to your Board for approval.
REFERENCE MATERIAL:
BAI #31, April 28, 2020
BAI #36, July 14, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with IPM
CAO ANALYST:
Sonia M. De La Rosa