Summary

In response to a recommendation in the Program Evaluation Division’s October 2018 report, Modifications to Inmate Pharmacy Purchasing and Monitoring Could Save $13.4 Million Annually, Session Law 2018-143 directed the Legislative Services Commission to contract for a consultant with expertise in the 340B program to prepare a proposal for the HRSA-compliant purchasing of inmate medications through a Disproportionate Share Hospital. The Legislative Services Commission engaged the Powers Law Firm to develop the proposal. The firm’s review of the information provided by stakeholders from the Department of Public Safety (DPS), Department of Health and Human Services (DHHS), and University of North Carolina Health System (UNC), combined with its understanding and analysis of 340B program requirements, led it to offer three recommendations which would allow DPS to partner with 340B program participants in order to maintain or improve care and significantly reduce drug costs for the North Carolina inmate population. First, the General Assembly should direct DPS to partner with DHHS to enroll in the 340B program as an STD sub-grantee and use the program to purchase medications, including HIV and Hepatitis C Virus (HCV) drugs, for the STD inmate population. Second, the General Assembly should direct DPS to issue a Request for Proposals for a partnership with one or more 340B hospitals to serve non-HIV/HCV inmates. Finally, the General Assembly should direct that DPS partner with UNC to receive 340B savings on non-HIV/HCV retail medications prescribed as a result of treatment provided at 340B-registered UNC locations.

Final Report

Summary of Recommendations