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Council reports Endo and Kroger settlements, trust-fund balance; approves new quality director position
Summary
The council announced recent manufacturer and pharmacy settlements, reported available trust-fund cash, reviewed administrative-cost ratios, and approved hiring a quality director to oversee outcomes reporting; members discussed long-term administrative percentage risks.
The Opioid Abatement Council received an update on recent settlements and its trust-fund balance and approved a new staff position to oversee quality and outcomes reporting.
Staff reported that the Attorney General’s office notified the council of two additional settlements: Endo paid a lump-sum settlement (amount reported as received in October) and Kroger settled with payments expected over 11 years totaling $30,000,000. At the meeting the office provided a trust fund statement current to Oct. 31 showing net cash available of $206,180,222.
Office staff presented two ways of calculating administrative ratios. Using total receipts to date, administrative costs (reported at approximately $260,000 annually) were under 1 percent of total revenue received so far; using administrative costs as a share of total OAC expenses to date, the ratio was higher (about 3.9 percent) because initial disbursements have been front-loaded. Council members raised concerns that annualized administrative percentages could rise as spending patterns change and as ongoing staffing and contract obligations (for example, the proposed Smart Initiative consultancy) are added.
Counsel and staff explained that some settlements arrive as lump sums while others are paid over many years, which affects apparent ratios. Council member Dr. Clay Jackson asked staff to produce projections showing administrative ratios with and without potential consultant costs.
On staffing the council approved creating and filling a quality director position to lead outcomes reporting, performance measures, technical assistance, and monitoring of grantees’ reporting systems; the motion to begin a search carried on roll call vote. The council also approved sending two council members and one advisory-panel member to the national RX Summit in Nashville (April) and reaffirmed follow-up steps in response to the comptroller’s audit (noted corrective-action items on written policies and consistent county-disbursement calculations).
