# Presentation: 802648

## Thriving Through Partnership 

**October 3 & 4, 2005**
**Chicago Marriott O’Hare Hotel **

## PHARMACEUTICAL PRIME VENDOR

**PPV Contract #V797P-1020**
**The Second Year**
**Brief Overview of the PPV Program**
**McKesson Presentation**
**Q&A Session**

## PHARMACEUTICAL PRIME VENDOR

**Awarded to McKesson on December 31, 2003. **
- PPV contract performance started on May 10, 2004.
- 	The contract includes a base performance period
- 	of 2 years and three option periods with 2 years each.
- Covers Continental US, Hawaii, Puerto Rico, Alaska,
-     Virgin Islands, Philippines, and Saipan.

## PHARMACEUTICAL PRIME VENDOR

**Brief Scope:****  **
- Calls for McKesson to maintain adequate supply and distribute drug/ pharmaceutical items and any other items contracted for that are dispensed through Pharmacy service with actual therapeutic purposes.
**   **Products include brand name and generic drugs, nutritional/dietary supplements, blood products, test strips, test sets, reagents, and limited  cosmetic products.** **

## PHARMACEUTICAL PRIME VENDOR

- These items are sold under various  Federal Supply Schedules (FSS), VA National Contracts, Basic Ordering Agreements (BOA), and other government contracts/agreements.
- Also carries open market items and limited number of medical/surgical items for outpatient pharmacy dispensing only.

## PHARMACEUTICAL PRIME VENDOR

**Participants:**
**Current Participants:  690 Facilities**
- 	**Mandatory for VA facilities**
- VA -  286 facilities
- 7 CMOPs  (the biggest customer)
- Other Government Agency (OGA) – 404 facilities** **

## PHARMACEUTICAL PRIME VENDOR

**Other Government Agency (OGA)**
**	**** **
**Indian Health Service (IHS)- 225 Facilities**** **
- Entitled to Big4 pricing
- Facilities under the PPV program include Tribal and Urban     Health Clinics
- 9 Federal National or Regional IHS Supply Service Centers
- A Tribal facility must have affiliation with a Federal IHS to have PPV access

## PHARMACEUTICAL PRIME VENDOR

**Other Government Agency (OGA) Facilities**
- Dept. of Immigration Health Service (DIHS)
- Dept. of Homeland Security (DHS)
- Health & Human Services (HHS)- Big 4 pricing
- Public Health Service (PHS)
- Howard University (HOW)
- State Veterans Homes (SVH)
- Bureau of Prison (BOP)
**	**
**	****	**
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## PHARMACEUTICAL PRIME VENDOR

**Other Government Agency (OGA) Facilities**
**State Veterans Homes (SVH) Facilities**** ****	**
**	****	**
- SVH Option 1 – Entitled to FSS pricing
- SVH Option 2 – Entitled to VA pricing

## PHARMACEUTICAL PRIME VENDOR

**Other Government Agency (OGA) Facilities**
**State Veterans Homes (SVH), under the PPV operate under two scenarios:**** **
**Option 1- **SVH orders directly, receives delivery and makes direct payment using state funds.
**Option 2- **SVH orders are approved by the VA Medical Center.  SVH receives the delivery but the VA receives the invoice and makes the payment.
***Since the VA authorizes the orders and pays for the products, Option 2 SVH are entitled to VA pricing (Big4, National Contracts, BPA, etc.).***

## PHARMACEUTICAL PRIME VENDOR

**PPV SALES:**
**Continues to increase**
**	****$3.0 Billion FY 2005 sales to date ****	**
**	****$3.9 Billion FY 2004 sales**
**	****$3.4 Billion FY 2003 sales**
** ****VA accounts for 91% of total sales**
** ****CMOP is approx.  61% of total sales and 67% of VA sales**
** ****98 percent contract compliance**
**	**

## PHARMACEUTICAL PRIME VENDOR

_**Websites**_:
- 	**Pharmaceutical Prime Vendor**
- 		_[http://www1.va.gov/oamm/nac/ncs/pharmpv.htm](http://www1.va.gov/oamm/nac/ncs/pharmpv.htm)_
- 	**Download List of PPV participants**
- 		_[http://www1.va.gov/oamm/nac/ncs/pharmpv.htm](http://www1.va.gov/oamm/nac/ncs/pharmpv.htm)_
- 	**PBM  Prices Files**
**	****	**_**[http://www.vapbm.org/PBM/prices.htm](http://www.vapbm.org/PBM/prices.htm)**_

## PHARMACEUTICAL PRIME VENDOR  

**PPV Contacts:**
**	****German Arcibal, Program Manager****	**
**	****Tel:****	****	****708-786-7663**
**	****e-mail:****	**_**[german.arcibal@med.va.gov](mailto:german.arcibal@med.va.gov)**_
**	****Susan Proctor, Contract Specialist**
**	****Tel:****	****	****708-786-5174**
**	****e-mail:****	**_**[susan.proctor@med.va.gov](mailto:susan.proctor@med.va.gov)**_
***Copy of Presentation will be made available after 5 p.m. on October 4 at ***_**[www.va.gov/vastorenac](http://www.va.gov/vastorenac)**_
**	****	****	****	****	****	*****Thank You***