New Pharmaceuticals Contract Will Save State Nearly $18 Million

Thu Jan 17, 2013 5:52pm EST

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Agencies leverage state`s massive buying power to cut costs
SACRAMENTO--(Business Wire)--
The California Department of General Services (DGS) today announced a new
statewide pharmaceutical contract that will save the state nearly $18 million by
leveraging the buying power of several state agencies acting as a single buyer. 

The contract will be used by state prisons, state hospitals, and state
developmental centers, including the California Correctional Health Care
Services, California Department of Developmental Services, California Department
of State Hospitals, California Department of Juvenile Justice, California State
University System, and other state and local agencies. 

"The various state entities that purchase pharmaceuticals are working as
partners on the procurement process in order to leverage their collective buying
power," said DGS Director Fred Klass. "DGS initiated the Pharmacy Procurement
Collaborative that has resulted in better pricing, better accountability, and
will save the state millions of dollars in drug costs." 

California state agencies purchase upwards of $300 million worth of
pharmaceuticals a year. Prior to the Pharmacy Procurement Collaborative, some
agencies negotiated separate pharmaceutical contracts, instead of leveraging the
state`s collective buying power as a single buyer. 

The new pharmaceutical wholesaler contract, awarded by DGS to AmerisourceBergen
Drug Corporation following a competitive bidding process, is projected to save
$17.4 million over the life of the agreement. 

The Department of General Services acts as the business manager for the State of
California. DGS helps state government better serve the public by providing
services to state agencies including procurement and acquisition solutions, real
estate management, leasing and design services, environmentally friendly
transportation, and architectural oversight and funding for the construction of
safe schools.

California Department of General Services
Eric Lamoureux, 916-376-5037
Monica Hassan, 916-376-5027 

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