Description
This RFI is not a formal solicitation or Request for Proposal (RFP). All interested pharmacy/health care vendors, including small businesses, are invited to respond to this RFI. The DoD will use information gained through this RFI to assess the fea sibility and cost-effectiveness of establishing GOCO pharmacies on Federal properties. If the DoD decides to issue an RFP on this topic, more detailed information about specific pharmacy locations, expected volumes, and government interfaces will be made available. All information currently available for this initiative is contained herein. PLEASE DIRECT ALL QUESTIONS AND RESPONSES TO THE FOLLOWING WEBSITE: http://GOCOrfi.fedworx.org (you must cut and paste to your browser) All questions submitted will be posted with answers on a continuous basis. The last day for submittal of questions will be 15 October 2007. Responses to this RFI are due 31 October 2007 Intent: This Request for Information (RFI) is to assess the potential for the Department of Defense (DoD) to contract the management, staffing, and daily operations of DoD beneficiary community pharmacies located on Federal properties and to understand industry le ading practices for operating contracted pharmacies. The DoD seeks to determine the cost-effectiveness of establishing new government-owned, contractor-operated (GOCO) pharmacies to better serve the pharmacy needs of the Military Health Systems (MHS) ben eficiaries. New GOCO pharmacies are not intended to replace or reduce prescription volumes of existing pharmacies located in Military Treatment Facilities (MTFs). Expected outcomes of establishing contractor operated pharmacies for the MHS include the ability to: " Sustain current health care benefit by enhancing TRICARE beneficiary access to prescription drug benefit " Continue to meet TRICARE beneficiary clinical and pharmaceutical needs in an effective, efficient, and fiscally responsible manner " Utilize existing Federal purchasing contracts for pharmaceuticals dispensed to TRICARE beneficiaries at DoD pharmacies " Deploy additional licensed, accredited pharmacists and support staff while not reducing the number of uniform and civilian staff at existing Military Treatment Facility pharmacies The DoD anticipates that contracted DoD beneficiary community pharmacies would not serve as full drug stores. They would operate on government-owned/leased properties including, but not limited to, military installations, DoD facilities, and other Federal locations and may operate within an existing operation such as a Commissary or Military Exchange. GOCO pharmacies may utilize a combination of contractor and government-owned systems to support daily operations; contractors are expected to provide near-r eal time archiving of health care treatment data that interfaces with either government or Pharmacy Benefits Manager systems. Pharmaceuticals dispensed by the contracted pharmacies would be purchased and stocked by the government. Access to contracted ph armacies would be strictly limited to eligible TRICARE beneficiaries. Analysis is currently being performed to determine target locations and potential pilot sites for GOCO pharmacies. All TRICARE regions (South, West, North) are being considered with the target of identifying up to 10 sites that can attract and maintain av erage daily volumes of 300 500 prescriptions. Background: The MHS mission is to enhance the DoD and the Nations security by providing health support for the full range of military operations and sustaining the health of all those entrusted to its care. One of the components of the MHS is the operation of a heal th care plan for 9.2 million eligible beneficiaries TRICARE. The TRICARE program is managed by TRICARE Management Activity (TMA) under the authority of the Office of the Assistant Secretary of Defense for Health Affairs. TMA administers an integrated TRICARE Pharmacy Benefits Program which offers pharm acy services to eligible beneficiaries through direct care pharmacies located at MTF hospitals and clinics, the TRICARE Mail Order Pharmacy (TMOP) program, and the TRICARE Retail Pharmacy (TRRx) program. The TRRx program allows eligible beneficiaries to o btain pharmacy services through either TRICARE retail network pharmacies or otherwise authorized retail non-network pharmacies. In Fiscal Year (FY) 2006, 536 MTF pharmacies filled 49.4 million 30-day equivalent prescriptions, TMOP filled 23.6 million 30-d ay equivalent prescriptions, and over 54,000 retail pharmacies filled 58.8 million 30-day equivalent prescriptions. In addition, the three-year compound annual growth rate (CAGR) for the three channels is the following: MTF -2.6%; TMOP 8.6%; Retail 11.4% . Despite being the most cost-effective channel for beneficiaries, MTF workload has decreased; most likely the result of several MTF pharmacy access challenges: " Lack of convenience o Limited hours of MTF pharmacy operation o Insufficient parking on military installations o Long wait times at MTF pharmacies " Limited MTF pharmacy product inventories and inventory levels " Retiree and retiree-dependant population concentrations in areas without MTF pharmacies Information Requested from Industry: In responding to this RFI, potentially interested parties are asked to submit information on the following: 1. Please provide the name of your organization and contact information for your main point of contact for this RFI. 2. Briefly describe the scope of contracted pharmacy services available in the marketplace and your opinion on how these services could apply to the Military Health System. 3. If you have experience with managing, staffing, and/or operating contracted pharmacies for government agencies or private sector organizations, please provide a summary of your scope of services. 4. Based on industry leading practices and/or your experiences, please describe the expected requirements in regards to the following: a. Time to set up a contracted pharmacy b. Infrastructure related to square footage, construction, facility design, layout, etc. c. Staffing models appropriate mix of pharmacists, technicians and administrative staff d. Key technologies / processes used (e.g., robotics, telepharmacy, drive-through) e. Equipment and supplies f. Typical operating days and hours g. Average daily volumes h. Formulary requirements, initial drug stocking and inventory levels i. Other requirements / variables 5. Please describe the standard processes for: a. Supplies and pharmaceuticals procurement b. Prescription filling c. Eligibility verification d. Claims processing e. Other key processes 6. Please describe any variations in approach for operating contracted pharmacies that may exist due to differences in the following: a. Prescription volume b. Beneficiary population demographics and culture c. Geographic location d. Payor mix e. Stand-alone versus / front-store model (e.g., contained within commissary or Military exchange) f. Other potential variables 7. What factors and metrics are typically used to measure the success of a community pharmacy operation (e.g., fully-loaded cost per square foot and/or prescription)? 8. Briefly describe the technical interfaces typically used in environments with contracted pharmacies. What recommendations do you have to enable efficient interface between contractor systems and DoD systems? What additional technical requirements may be necessary for interfacing and implementation? 9. What should the DoD consider related to legal restrictions, governing bodies, state licensure, zoning restrictions, etc.? 10. What are the advantages and/or disadvantages of operating multiple contracted pharmacies versus a single contracted pharmacy for a client? 11. What types of compensation arrangements are typically used for contracted pharmacies? What would you recommend for the Military Health Sys tem based on expected volumes of 300-500 prescriptions per day?