Judge Doyal: county saves nearly $700,000 through pharmacy contract negotiation
Oct. 30, 2017

County Judge Craig Doyal said recent negotiations over its pharmacy services contract lead by the county’s Risk Management and Purchasing department heads will yield nearly $700,000 in savings over the course of a year, based on current claims and the additional value that the company, MaxorPlus, Ltd. delivered.

“This is an outstanding example of the value we want our department heads to provide to our county government, its taxpayers, and our employees,” Judge Doyal said. “One of my major goals in taking office was to ensure the county departments that report to this office are operating efficiently and effectively.”

The revised contract agreement, effective Jan. 1, 2018 with Maxorplus, Ltd., was approved by Commissioners Court Oct. 24, 2017.

County Purchasing Director Gilbert Jalomo and Director of Risk Management Virginia Little worked together to negotiate the revisions to the contract in order to reduce the county’s costs on its pharmacy services plan.

The savings come from changes to the county’s rebate program and deeper discounts and lower dispense fees on medications.

According to a letter from MaxorPlus, Ltd., “Based on historical claims volume the increase in rebates will amount to approximately $503,000 for one year. The deeper discounts and lower dispense fees represent approximately $160,000 in savings over the course of the year.”

Little said the changes will help slow overall costs even as the number of county employees increases.

“The additional savings on the deeper discounts and dispense fees will impact us by slowing increases to overall RX claims costs as our group, due to workforce increases, is steadily growing,” she said.

Jalomo said “We work constantly to negotiate contracts to the maximum advantage for Montgomery County.”

Judge Doyal said: “I applaud what Mr. Jalomo and Ms. Little have accomplished in our ongoing efforts to save taxpayer dollars and operate efficiently and effectively, and I appreciate MaxorPlus, Ltd. and its efforts to bring added value.”

Media Contact:

James Fredricks
Chief of Staff
(936) 539-7812