Thriving Through Partnership

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Thriving Through Partnership

• October 3 4, 2005
• Chicago Marriott OHare Hotel

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PHARMACEUTICAL PRIME VENDOR

• PPV Contract V797P-1020
• The Second Year
• Brief Overview of the PPV Program
• McKesson Presentation
• QA Session

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PHARMACEUTICAL PRIME VENDOR

• Awarded to McKesson on December 31, 2003.
• PPV contract performance started on May 10, 2004.
  
• The contract includes a base performance period
• of 2 years and three option periods with 2 years
  each.
• Covers Continental US, Hawaii, Puerto Rico,
  Alaska,
• Virgin Islands, Philippines, and Saipan.

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PHARMACEUTICAL PRIME VENDOR

• Brief Scope
• Calls for McKesson to maintain adequate supply
  and distribute drug/ pharmaceutical items and any
  other items contracted for that are dispensed
  through Pharmacy service with actual therapeutic
  purposes.
• Products include brand name and generic drugs,
  nutritional/dietary supplements, blood products,
  test strips, test sets, reagents, and limited
  cosmetic products.

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PHARMACEUTICAL PRIME VENDOR

• These items are sold under various Federal
  Supply Schedules (FSS), VA National Contracts,
  Basic Ordering Agreements (BOA), and other
  government contracts/agreements.
• Also carries open market items and limited number
  of medical/surgical items for outpatient pharmacy
  dispensing only.

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PHARMACEUTICAL PRIME VENDOR

• Participants
• Current Participants 690 Facilities
• Mandatory for VA facilities
• VA - 286 facilities
• 7 CMOPs (the biggest customer)
• Other Government Agency (OGA) 404 facilities

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PHARMACEUTICAL PRIME VENDOR

• Other Government Agency (OGA)
• Indian Health Service (IHS)- 225 Facilities
• Entitled to Big4 pricing
• Facilities under the PPV program include Tribal
  and Urban Health Clinics
• 9 Federal National or Regional IHS Supply Service
  Centers
• A Tribal facility must have affiliation with a
  Federal IHS to have PPV access

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PHARMACEUTICAL PRIME VENDOR

• Other Government Agency (OGA) Facilities
• Dept. of Immigration Health Service (DIHS)
• Dept. of Homeland Security (DHS)
• Health Human Services (HHS)- Big 4 pricing
• Public Health Service (PHS)
• Howard University (HOW)
• State Veterans Homes (SVH)
• Bureau of Prison (BOP)

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PHARMACEUTICAL PRIME VENDOR

• Other Government Agency (OGA) Facilities
• State Veterans Homes (SVH) Facilities
• SVH Option 1 Entitled to FSS pricing
• SVH Option 2 Entitled to VA pricing

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PHARMACEUTICAL PRIME VENDOR

• Other Government Agency (OGA) Facilities
• State Veterans Homes (SVH), under the PPV operate
  under two scenarios
• Option 1- SVH orders directly, receives delivery
  and makes direct payment using state funds.
• Option 2- SVH orders are approved by the VA
  Medical Center. SVH receives the delivery but
  the VA receives the invoice and makes the
  payment.
• Since the VA authorizes the orders and pays for
  the products, Option 2 SVH are entitled to VA
  pricing (Big4, National Contracts, BPA, etc.).

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PHARMACEUTICAL PRIME VENDOR

• PPV SALES
• Continues to increase
• 3.0 Billion FY 2005 sales to date
• 3.9 Billion FY 2004 sales
• 3.4 Billion FY 2003 sales
• VA accounts for 91 of total sales
• CMOP is approx. 61 of total sales and 67 of
  VA sales
• 98 percent contract compliance

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PHARMACEUTICAL PRIME VENDOR

• Websites
• Pharmaceutical Prime Vendor
• http//www1.va.gov/oamm/nac/ncs/pharmpv.htm
• Download List of PPV participants
• http//www1.va.gov/oamm/nac/ncs/pharmpv.htm
• PBM Prices Files
• http//www.vapbm.org/PBM/prices.htm

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PHARMACEUTICAL PRIME VENDOR

• PPV Contacts
• German Arcibal, Program Manager
• Tel [phone]
• e-mail german.arcibal_at_med.va.gov
• Susan Proctor, Contract Specialist
• Tel [phone]
• e-mail susan.proctor_at_med.va.gov
• Copy of Presentation will be made available after
  5 p.m. on October 4 at www.va.gov/vastorenac
• Thank You