Council to vote on hiring Pa. company to run Summit County-sponsored facility
By Rick Armon
Beacon Journal staff writer
Published on Sunday, Sep 13, 2009
Summit County plans to hire a Pennsylvania company to open and run a county-sponsored pharmacy in downtown Akron.
The pharmacy would be the first public-private partnership of its kind in Ohio, with the company sharing profits with local government, county leaders said.
The retail and mail-order business would be open to the general public. The real goal, however, is to reduce prescription drug costs for the county, which would encourage its more than 3,000 workers to get medications there.
The pharmacy also would offer reclaimed low-cost medicine for needy residents.
ExpressMed Pharmacy Services of Monaca, Pa., would operate the pharmacy and pay one-third of the net profits to the county, according to a proposed four-year deal.
The company also would manage prescription drug benefits for county workers. The county would pay a $3.75 fee for each prescription filled in return for 100 percent of the manufacturer rebates and the company not marking up the cost of the medication.
County Council could approve the agreement Monday. ExpressMed was the low bidder after the county put out a request for proposals.
''It's great for Summit County to be on the leading edge,'' Councilwoman Paula Prentice said.
ExpressMed did not reply to requests for comment.
County officials hope to lower their prescription drug costs by steering employees to the pharmacy, which would guarantee that the county pays the lesser of the cost or wholesale price per medication.
The county also wants to offer discounted co-pays for its workers and might require its employees to get certain mail-order medications at the pharmacy.
The county spends between $7 million and $10 million annually on prescription drugs. Those costs could drop by $600,000 to $700,000 through the combined savings and profit-sharing, said Jason Dodson, chief of staff for County Executive Russ Pry.
''If it's a success, it will lend itself to be a model that should be copied throughout the state,'' Dodson said.
The Ohio Pharmacists Association is questioning the proposal, saying it would pull away business from established pharmacies that are struggling because of low reimbursement rates and prescription costs.
''Any time a government entity chooses to open a business in competition with a for-profit business paying taxes in that area, there is a legitimate concern,'' said Ernie Boyd, executive director of the pharmacists association in Columbus.
Most pharmacies are operating with a profit margin below 2 percent, Boyd said. Fifteen years ago, there were 1,200 small and independent pharmacies in the state but only about 600 remain, he said.
''We've had more pharmacies closing than opening today in Ohio,'' he said. ''I'll be surprised if this turns out to be a great moneymaker for the county.''
Boyd noted that the state recently dropped its mandatory mail-order policy because local pharmacy prices are so low.
He also questioned why the county would want to limit a worker's ability to pick his or her own pharmacy. Local pharmacists are familiar with their clients and know their medications and potential drug interactions, he said.
''Patients choose their pharmacist as carefully as their physician,'' Boyd said.
Union approves
Tom Morneweck, president of the American Federation of State, County and Municipal Employees Local 1229, said he hasn't heard of any complaints from members.
''The bottom line is that if the county can save money and the employees save some money, that's the big picture here,'' he said. ''It's all about saving money.''
The pharmacy would be at 191 S. Main St., a county-owned building next to the county office building downtown. According to the proposed agreement, ExpressMed would pay $38,000 in rent the first year, with 3 percent increases in subsequent years.
The hours have not been set but the business is expected to be open after normal work hours, Dodson said.
The pharmacy could open as early as October, but it probably will be later in the year, he said.
The county and Akron Community Health Resources Inc. also have talked about operating a downtown medical and dental clinic. The pharmacy would serve as the clinic's pharmacy.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
