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Auditor General Jack Wagner Says State Could Save Millions by Consolidating Prescription Drug Purchases
Date:11/17/2010

ly to form a blue-ribbon panel to analyze state government's wasteful and duplicative drug purchasing processes and make appropriate recommendations for maximizing efficiencies," Wagner said. "We must fix this system now so that it remains strong and vital for Pennsylvanians who need it now, and in the future."

Wagner made his remarks at a morning press conference, his most recent in a series of media briefings to discuss how Pennsylvania could save hundreds of millions of taxpayer dollars without reducing services to residents. Previous press conferences highlighted potential savings of $225 million in charter and cyber-charter school funding; $436 million by eliminating eligibility errors in the Medicaid program, and $201 million by offering state employees an early-retirement incentive.

"With Pennsylvania facing its greatest economic crisis since the Great Depression, and with the commonwealth facing a potential $5 billion budget deficit next year, we must do all that we can to save taxpayer money without compromising necessary services and programs," Wagner said.

Wagner noted that the idea of consolidating the state's prescription drug purchases has been around for two decades and was considered at one time or another by the Casey, Ridge and Rendell administrations.

Gov. Rendell established the Office of Health Care Reform in January 2003 to identify redundant and inefficient processes and procedures in state government.  The OHCR determined that the state's prescription drug purchases and reimbursements were areas with the most inefficient processes.

The OHCR assembled a cabinet to discuss how various state departments could work together to streamline prescription drug purchasing.  Based on meetings of the cabinet, the OHCR developed a program called the Commonwealth Pharmacy Policy and Administration Project, which recommended centralizing the state's drug purchases.

"Combining our prescription drug purchas
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SOURCE Pennsylvania Department of the Auditor General
Copyright©2010 PR Newswire.
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