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Committee forwards $89.5M contract-authority increase for DPH specialty drugs
Summary
The Budget and Finance Committee forwarded an amendment allowing the Department of Public Health to increase contract authority with CuraScripts (Priority Healthcare Distribution) to $98.5M through 2030, driven mainly by rising use of long-acting injectable buprenorphine for overdose prevention.
The Budget and Finance Committee on Dec. 3 voted to forward a Department of Public Health request to increase contract authority with Priority Healthcare Distribution (doing business as CuraScripts Specialty Distribution) by about $89.5 million to a total not to exceed roughly $98.5 million and extend the contract through Nov. 30, 2030.
David Smith, DPH chief pharmacy officer, said the increase is largely driven by rising utilization of long-acting injectable buprenorphine—used to treat opioid use disorder and reduce overdose deaths—which accounts for about 88% of contract spending. He said CuraScripts supplies products that are otherwise unavailable locally, that the medication reduces deaths by roughly 50% when used, and that DPH pursues insurance reimbursement to minimize general fund impact (BLA estimated 95% historical cost recovery and current trends of 98–99%).
BLA said utilization has grown 10–20% per year and projected annual spending to rise from about $10M now to $22M by FY2030, with approximately $4.5M of local funds needed over five years after reimbursements. Supervisors asked about federal reimbursement uncertainties; DPH acknowledged risk and said it will maximize billing practices but that reimbursement policy changes could affect net local costs.
No public speakers addressed the item. The committee recorded three ayes and forwarded the contract amendment to the full Board with a positive recommendation.
