Dept. of Corrections’ New Pharmacy Contract Estimated to Save $1 Million Annually

HARRISBURG, Pa. – The Department of Corrections (DOC) has entered into a new pharmacy contract that is estimated to save $1 million a year.

The new contract arrangement is through the Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP) to continue to purchase drugs through Diamond Pharmacy Services.

Under the contract, effective February 1, the DOC is paying a reduced price for each prescription dispensing fee – the charge incurred for each prescription filled – and the agency will not have to pay transmission fee (the costs associated with getting prescription data from pharmacy to electronic health record).

The contract will also provide access to generic drugs whenever possible and offer same day delivery to all prisons to ensure swift commencement of therapies prescribed.

“This agreement is a win-win for the DOC,” said Christopher Oppman, the DOC’s deputy secretary for administration. “It will provide more efficient pharmaceutical distribution services to our facilities, while also achieving cost-savings for the commonwealth.”

The DOC’s budget for prescription drugs for the inmate population is roughly $48 million a year.

The Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP), created in 1985, is a free voluntary group purchasing organization operated and managed by Minnesota’s Department of Administration for government healthcare institutions.

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