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Committee forwards $677M in DPH distributor agreements after legal timing and pricing questions
Summary
The Budget & Finance Committee forwarded two retroactive distribution agreements with McKesson entities — totaling roughly $677M over five years — and discussed pricing controls, federal 340B access, and the effect of a recently amended administrative code on DPH purchasing authority.
The Budget and Finance Committee forwarded two Department of Public Health agreements with McKesson and McKesson Plasma and Biologic LSC to the Board for consideration at a later meeting, after questions about timing and pricing controls.
David Woods, DPH chief pharmacy officer, described the two group‑purchasing/distribution agreements: a five‑year contract with a not‑to‑exceed amount of approximately $381 million, and a second five‑year agreement for plasma/biologics not to exceed about $295.9 million. Woods said DPH uses…
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