HRSAs 340B Prime Vendor Program

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HRSAs 340B Prime Vendor Program An
Update October, 2009
Thomas Renshaw, R.Ph., MCSD Director, Apexus
340B PVP
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340B Program Administration

• The 340B Program Team
• HRSAs Office of Pharmacy Affairs
• Pharmacy Services
• Support Center
• (PSSC/PharmTA)
• 340B PVP Prime Vendor
• Program (Apexus Inc.)

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Apexus HRSAs 340B Prime Vendor

• Unique federal purchasing program (public-private
  partnership)
• Voluntary program for suppliers and 340b covered
  entities
• Mission - To improve access to affordable
  medications for all 340B covered entities by
• Lowering participants supply costs by expanding
  the current PVP portfolio of sub-340B priced
  products
• Providing covered entities with access to
  efficient drug distribution solutions to meet
  their patients needs
• Providing access to other value added products
  and services meeting covered entities unique
  needs

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340B Prime Vendor Program Participantsby
Effective Date (cumulative, as of Sept 1, 2009)
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PVP Participants by Entity Type (as of Sept
2009 9,493 participants)
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Benefits of PVP to Covered Entities

• No risk or cost to participate
• Ease of enrollment
• On-line enrollment, and profile updates
• Choice of pharmacy distributor
• New agreements pending to expand 340B purchase
  options within CHCs
• Access to sub-ceiling savings averaging 15 on
  contracted products
• Longer term contracts
• Expanded resources available on secure website

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PVP Supplier Value Proposition

• An efficient and low cost method of contracting
  with public sector entities
• Proven track record and understanding of
  government pricing
• Price protections on branded drugs
• Partner in developing a win-win strategy to
  improve sales and marketshare of generics or
  brands in the 340B market
• Many manufacturers do not have a proactive
  strategy for the 340B market
• Infrastructure to deliver accurate and
  transparent pricing with emphasis on improving
  340B program integrity
• Co-marketing of products and services

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PVP Portfolio Development

• Over 3500 covered drugs at sub-ceiling pricing
• Best market pricing for non-covered drugs and
  vaccines
• One or two products within therapeutic drug class
• Participant advisory councils to address subgroup
  needs
• Hospitals
• Community Health Centers
• Title X Family Planning Clinics
• Two new councils to be added this year
• Hemophilia Treatment Centers
• TB/STD

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PVP Contracting Guidelines

• Identify high spend drug categories and create
  win-win opportunities for participants and
  suppliers
• Negotiation or competitive bid
• Sub ceiling pricing on covered drugs and best
  market pricing on non-covered drugs, vaccines and
  pharmacy supplies
• VA pricing on pharmacy equipment
• Transparent pricing - discount up front no
  rebates
• Tiered pricing structure available on certain
  products while maintaining the integrity and
  leverage of national purchasing program

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Supplier Agreements

• Abbott Labs
• Abbott Diabetes Care
• Allendale Pharmaceutical
• Alliant Pharmaceuticals
• AMO
• Astellas Pharma
• Astra-Zeneca Pharmaceuticals
• Abraxis Pharmaceutical
• Akorn Inc.
• Apothecus
• Barrier Therapeutics
• Bayer Pharma (pending)
• Bayer Diagnostics
• Bedford Labs
• Boerhinger Ingelheim
• Can-am Care LLC (Kendall)
• Caraco Pharmaceutical Labs
• Eisai Pharma
• GW Laboratories

• Major Pharmaceuticals
• Medicure
• Merck Co.
• Morton Grove Pharm Inc.
• NitroMed Inc.
• Novartis Vaccines
• Novo Nordisk
• Okomoto USA Inc.
• Paddock Labs
• RD Plastics Co Inc.
• Rx Elite Holdings, Inc.
• Sandoz Pharmaceutical
• Sanofi-Pasteur
• Schering Plough
• Standard Register
• Tercica
• Teva Health Systems
• Total Pharmacy Supply
• Tri State Distribution

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Participant Annualized Sales by Covered Entity
Type
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PVP Added Savings by Entity Type
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Informational Tools Resources

• Pharmacy Flash Newsletter
• Contract highlights/supplier profiles
• Government policy news
• Industry news
• Clinical corner high impact drug briefs
• Drug shortage/product recall
• ISMP Medication Safety Alert!

• Educational programs for all Stakeholders
• On-demand tutorials
• Monthly educational training webinars to
  subgroups
• National presentations

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Informational Tools Resources

• Drug price forecasts and other budgeting tools
• Best Buy by Therapeutic Class Report
• PHS Selling Price Comparison Reports (Quarterly)
• Quarterly Price Change Report
• 340B Selling Price Look-Up Download

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340B Contract Pharmacy ModelImplementation from
the Covered Entity View

• Select a wholesaler.
• Sign Prime Vendor Program agreement.
• Develop an audit plan.
• Develop a formulary system.
• Develop a Policy and Procedures Manual.
• Choose pharmacy, negotiate contract, and submit
  the Self-certification Form. (ftp//ftp.hrsa.gov/b
  phc/pdf/opa/CPSelfCert.pdf)

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340B Contract Pharmacy ModelPicking the right
pharmacy

• Consider the importance of comprehensive pharmacy
  services as an integral component of primary
  health care. 
• Comprehensive pharmacy services include patient
  access to affordable pharmaceuticals, application
  of "best practices and the application of
  systems that improve patient outcomes through
  safe and effective medication use.
• How will your contract pharmacy meet your needs
  for comprehensive pharmacy services?

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340B Contract Pharmacy ModelFlow of Drugs and
Money
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Contact Information

• Prime Vendor Program (Apexus)
• Phone [phone]
• Email trenshaw_at_340bpvp.com
• Web http//www.340bpvp.com