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Millions in Pharmaceutical Savings are Achievable Within Delaware’s Correctional Facilities Without Compromising Services

Report Details

Report Description: 
The Office of the Auditor of Accounts Office (OAOA) prepared this special report to examine the model now used by the Department of Corrections (DOC) to purchase prescription drugs for inmates in Delaware correctional facilities. It includes an evaluation of the purchasing contract between DOC and its vendor Correct RX (CRX) from July 1, 2014 to June 30, 2018, including the two additional two-year renewal addendums that DOC chose to execute; a comparison of prescription drug purchasing models for other populations in Delaware’s care through the state’s Group Purchasing Organization (GPO), Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP Infuse); and a review of national trends of government pharmaceutical purchasing. Additionally, we calculated potential cost savings for three separate options if DOC’s purchasing model was converted to one under MMCAP Infuse. If DOC contracted through MMCAP Infuse instead of with CRX, we estimated that Delaware taxpayers could have saved as much as $44.1 million over seven years for pharmacy services. This would have reduced their annual budget for pharmacy services by nearly half. Our study reviewed DOC prescription drug spending for fiscal years 2019 and 2020 to prepare our estimates.
Date Issued: 
Tuesday, February 16, 2021
Agency Reviewed / Investigated: 
United States
Type of Report: 
Professional Standard: 
GAO's Yellow Book, Generally Accepted Government Auditing Standards (GAGAS)

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