PHARMACEUTICAL PRIME VENDOR: A DYNAMIC PROCESS

1. PHARMACEUTICAL PRIME VENDOR: A DYNAMIC PROCESS Diana T. Higgins PharmD VISN 21 Pharmacy Program Manager August2011

2. Objectives: • Identify the goals of the prime vendor workgroup • Develop an understanding of what prime vendor is • Describe at least three duties involved in ordering from prime vendor

3. Prime Vendor Workgroup Focus • Explore Pharmaceutical Prime Vendor (PPV) • Identify training needs for using PPV • Discuss terms, conditions, benefits and services available to VA under the PPV contract • Create a “quick reference guide” for PPV processes • Develop training modules for PPV, with the focus on standardization

4. MODULE - 1 PHARMACEUTICAL PRIME VENDOR: AN OVERVIEW

5. What is Prime Vendor? • Pharmaceutical prime vendor (PPV) is a mandatory contractor selected through solicitation to maintain an adequate supply of and distribute all drug/pharmaceutical items as well as other items contracted dispensed through pharmacy service • The pharmaceutical prime vendor is currently “McKesson”, which must be used as the primary source whenever possible

6. Services and Benefits Provided Under the Terms of the PPV Contract • National contract administered by the NAC • Government contracts • Negative distribution fees • Automated windows based ordering system with real time inventory • Next day delivery • Emergency deliveries • Drop shipments • Controlled substance ordering system (CSOS) • Specialty medication ordering (separate account) • Return processing • Backorder/recall info. • Technical support • One stop shopping • Asset management/reports • Training • Customer service

7. Benefits of the PPV Program • Secure and efficient ordering through McKesson’s web-based ordering system • Reduced inventory costs resulting from just in time deliveries • Reduced acquisition cost (negative distribution fees) • Electronic invoicing • Drug accountability • Fairly high fill rates (97%) • Availability of on-line reports and account management

8. Additional Training Modules Under Development • Module 2 - Drug Accountability • Module 3 - Account Management • Module 4 - Contracts • Module 5 - Prime Vendor Order Process • Module 6 – CSOS • Module 7 – ABC’s of Inventory Management • Module 8 – Returns • Module 9 – Reverse Distribution • Module 10 – Accounting • Module 11 – Reporting Functions • Module 12 – Reference Tools • Module 13 – Nuts and Bolts • Module 14 – Time Management

9. National Prime Vendor Workgroup • Karen, Cebina karen.cebina@va.gov Michigan • Dennis, Drake dennis.drake@va.gov Tennessee • Diana, Higgins diana.higgins@va.gov California • Tammie, Lamb tammie.lamb@va.gov Tennessee • Carol, May carol.may@va.gov Michigan • Donna, Roffol donna.roffol@va.gov Pennsylvania • Dionne, Roney dionne.rony@va.gov South Carolina • Carol, Russell carol.russell@va.gov Florida • Kathy, Walker kathy.walker2@va.gov Pennsylvania

10. Questions