WHEREAS, in September 2002,
the California Senate passed Senator Sher’s bill, SB 1315, authorizing the
California Department of General Services (DGS) to enter into contracts with
manufacturers and suppliers of drugs and to obtain from them discounts, rebates,
or refunds as permissible under federal law; and,
WHEREAS, SB 1315 requires that the State Departments of Mental Health,
Corrections, Youth Authority, and Developmental Services participate in the
program, and also allows similar local and public agency governmental entities
to voluntarily participate in the program; and,
WHEREAS, local governmental entities that elect to participate in the program
are eligible to receive the discounts, rebates or refunds negotiated by DGS;
and,
WHEREAS, the Department of Public Health currently purchases pharmaceuticals
through contracts negotiated by its group purchasing organization, Novation; and
WHEREAS, DGS will not release their contract information to San Francisco unless
the City agrees to participate in the DGS program, therefore, it is unknown
whether DGS contract pricing is better than DPH current group purchasing
organization, Novation; and,
WHEREAS, other details of participation, such as the use and identity of a prime
vendor and drug formulary issues, are also disclosed only to local governmental
agencies that agree to participate in the program; and,
WHEREAS, investigation of possible cost benefits to participating in the DGS
program is a priority for the Department of Public Health and participation in
the DGS program requires a resolution from the Board of Supervisors; now,
therefore, be it
RESOLVED that the Department of Public Health is urging approval from the San
Francisco Board of Supervisors to join the State Department of General Services
pharmaceutical purchasing program to explore the cost benefits of participation;
and, be it
FURTHER RESOLVED that the Department of Public Health be given authority by the
Board of Supervisors to participate in State Department of General Services
pharmaceutical purchasing contracts that provide favorable cost benefits for the
Department of Public Health.
I hereby certify that the San Francisco Health Commission at its meeting of
April 20, 2004 adopted the foregoing resolution.
Michele M. Olson, Executive Secretary to the Health Commission