Summary

The Department of Health is responsible for the State’s public health system and as such is authorized to provide pharmacy services through Statewide contracts.  Our audit included the Department’s contract with the State of Minnesota for membership in the Minnesota Multi-State Contracting Alliance for Pharmacy (MMCAP) and the prime vendor contract with Cardinal Health 103, Inc., as well as monitoring activities related to these contracts.  According to MMCAP records, Statewide pharmaceutical purchases for the period May 2004 through April 2005 totaled more than $166 million.  Our audit focused on activities and transactions for the period July 2004 through January 2006, and selected actions taken through June 26, 2006.   

Finding No. 1:        Modifications to the standard MMCAP contract and enhancements to the contracting process may have improved the Department’s ability to properly administer and monitor the contract.

Finding No. 2:       The Department did not effectively monitor the Statewide pharmaceutical contracts.

Finding No. 3:       The Department did not monitor county health department pharmaceutical purchases to determine whether the best prices were received or whether unusual utilization patterns existed. 

The Secretary's response is included in its entirety at the end of this report as Appendix A.