| 1 | Representative Ambler offered the following: |
| 2 |
|
| 3 | Substitute Amendment for Amendment (080725) (with title |
| 4 | amendment) |
| 5 | Remove lines 290-316 and insert: |
| 6 | Section 5. Purchasing and repackaging of pharmaceuticals; |
| 7 | studies and reports.-- |
| 8 | (1) The Office of Program Policy Analysis and Government |
| 9 | Accountability shall evaluate and submit a report to the |
| 10 | Legislature by August 31, 2009, containing recommendations for |
| 11 | the statewide consolidation of pharmaceutical repackaging |
| 12 | services, including an evaluation of the value to the state of |
| 13 | all potential credits, rebates, and cost avoidances that may be |
| 14 | realized through repackaging for the Department of Corrections, |
| 15 | the Department of Juvenile Justice, the Agency for Persons with |
| 16 | Disabilities, the Department of Children and Family Services, |
| 17 | and the Department of Health. The Office of Program Policy |
| 18 | Analysis and Government Accountability shall also include in its |
| 19 | report an analysis of verifiable annual utilization rates for |
| 20 | the dispensing of pharmaceuticals for fiscal years 2004-2005 |
| 21 | through 2008-2009 by each of the five agencies that would |
| 22 | participate in a consolidated repackaging services program and |
| 23 | the approximate daily output capabilities that would be required |
| 24 | to meet the projected average daily utilization rate, as |
| 25 | adjusted for future growth projections over the next 3 years for |
| 26 | the five agencies. The report shall include an assessment of the |
| 27 | projected capitalized cost of leases and equipment and the fully |
| 28 | burdened labor rate, projected FTE requirements, and associated |
| 29 | operating costs needed by the Department of Health to meet the |
| 30 | projected daily utilization requirements for statewide |
| 31 | consolidated repackaging services and, if applicable, any cost |
| 32 | avoidances or credits that would apply or not apply, as well as |
| 33 | any federal regulatory requirements, including any inspection |
| 34 | and certification requirements by the United States Food and |
| 35 | Drug Administration. |
| 36 | (2) The Office of Program Policy Analysis and Government |
| 37 | Accountability shall evaluate and submit a report to the |
| 38 | Legislature by September 30, 2009, containing recommendations |
| 39 | concerning options for implementing a statewide consolidated |
| 40 | program for purchasing pharmaceuticals under an adopted |
| 41 | formulary to be used by the Department of Corrections, the |
| 42 | Department of Juvenile Justice, the Agency for Persons with |
| 43 | Disabilities, the Department of Children and Family Services, |
| 44 | and the Department of Health and the feasibility of the state |
| 45 | obtaining discounts below both wholesale acquisition cost and |
| 46 | the Minnesota Multistate Contracting Alliance for Pharmacy |
| 47 | prices for the pharmaceuticals listed on the adopted formulary, |
| 48 | including the availability and regulatory prerequisites for |
| 49 | obtaining 340b pricing under the federal Medicare program. |
| 50 | (3) The Department of Health shall study the feasibility |
| 51 | of consolidating drug repackaging services through the |
| 52 | Department of Health's central pharmacy and compare that with |
| 53 | the costs and benefits of contracting out for such services to a |
| 54 | private pharmaceutical repackager licensed by the United States |
| 55 | Food and Drug Administration, with preference given to vendors |
| 56 | with Florida-based manufacturing operations that will promote |
| 57 | the creation and maintenance of jobs in the state. The |
| 58 | department shall be prohibited from contracting with any other |
| 59 | agency to provide pharmaceutical repackaging services until the |
| 60 | results of the Office of Program Policy Analysis and Government |
| 61 | Accountability study are reported to the Legislature and the |
| 62 | department has submitted a plan for consolidating pharmaceutical |
| 63 | repackaging services for the Department of Corrections, the |
| 64 | Department of Juvenile Justice, the Agency for Persons with |
| 65 | Disabilities, the Department of Children and Family Services, |
| 66 | and the Department of Health, consistent with the |
| 67 | recommendations of the Office of Program Policy Analysis and |
| 68 | Government Accountability and the Pharmacy and Therapeutic |
| 69 | Advisory Council. The plan shall be submitted to the Legislature |
| 70 | by January 31, 2010. |
| 71 |
|
| 72 |
|
| 73 | ----------------------------------------------------- |
| 74 | T I T L E A M E N D M E N T |
| 75 | Remove lines 22-27 and insert: |
| 76 | five or fewer residents; requiring the Office of Program |
| 77 | Policy Analysis and Government Accountability to evaluate |
| 78 | and submit reports to the Legislature regarding |
| 79 | consolidation of pharmaceutical repackaging services and |
| 80 | implementation of a statewide consolidated pharmaceutical |
| 81 | purchasing program; requiring the Department of Health to |
| 82 | conduct a study; prohibiting the department from entering |
| 83 | into certain contracts until the results of the Office of |
| 84 | Program Policy Analysis and Government Accountability |
| 85 | report are submitted to the Legislature and the department |
| 86 | has submitted a plan to the Legislature for consolidation |
| 87 | of pharmaceutical repackaging services; transferring, |
| 88 | renumbering, and amending |