5202.0: Wednesday, November 15, 2000 - 2:30 PM

Abstract #17185

Texas Association of Community Health Centers pharmacy group purchasing program

The Texas Association of Community Health Centers (TACHC) has had a Pharmacy Group Purchasing Program for the member Community Health Centers in Texas since 1987. This program utilizes the center’s GROUP volume to negotiate contracts with both the pharmaceutical wholesalers and the pharmaceutical manufacturers. This program currently has centers in 14 states with over 100 centers participating. This program is able to serve every Community Health Center the same. Ever since Public Health Service (PHS) pricing became effective in December of 1992, TACHC has been able to negotiate contract pricing BELOW PHS with manufacturers.

TACHC and Cardinal have named this program 340Better. The benefits to the 340Better program has 4 areas to assist a Community Health Center with a pharmacy program:

1. Decreased Costs:
   • Same low wholesaler cost-plus for ALL centers (regardless of volume and no minimum requirements)
   • Pricing BELOW PHS
2. Increased Operating Efficiency:
   • Reduce overall cost of pharmacy operations
   • Maximize operational duties
   • Inventory management
3. Increased Budgeting Efficiency:
   • Consistent pricing
   • Enhanced reporting capabilities
4. Increased Client Access:
   • Cost containment
   • Greater access to patients
   • Community Health Center advocate

Learning Objectives:

1. Identify methods of obtaining lower cost pharmaceuticals.
2. Describe how to access 340B prices.
3. Identify strategies for negotiating lower prices on needed pharmaceuticals.

Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.

The 128th Annual Meeting of APHA