1994-116-RES WHEREAS, the City Council of the City of Paris is desirous of obtaining mail order pharmacy services for
RESOLUTION NO.
94-116
WHEREAS, the City Council of the City of Paris is desirous of obtaining mail order
pharmacy services for City of Paris employees which will reduce the cost of medication for them
and will save both the City and its insurance fund money; and,
WHEREAS, Gene Anderson, Director of Finance of the City of Paris, did, on the 4th
day of August, 1994, execute a contract for such mail order pharmacy services with Rx Direct;
and,
WHEREAS, it is in the best interest of the City of Paris and its employees that the
contract, attached hereto as Exhibit A, be, in all things, approved and ratified; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL 01:<' THE CITY OF PARIS, that the
contract with Rx Direct for mail order pharmacy services, in the form attached hereto as Exhibit
A, be, and the same is hereby, approved; and,
BE IT FURTHER RESOLVED, that the execution of the contract attached hereto as
Exhibit A with Rx Direct by Gene Anderson, Director of Finance of the City of Paris, on the
4th day of August, 1994, be, and the same is hereby, ratified.
PASSED AND ADOPTED this 12th day of September
ATTEST:
I
~~\.;, ~"",~~~r<<J
Mattie Cunningham, City Clerk
MAIL ORDER PHARMACY
SERVICES AGREEMENT
This Agreement is effective as of August 4, 1994, between RX DIRECT, INC., 2307
Clarksville, Paris, Texas 75460, ("Rx Direct") and City of Paris, 150 SE 1st, Paris, Texas
75460, ("Sponsor") (sometimes hereinafter called the parties").
In consideratic;ln of their mutual undertakings, the parties hereby agree as follows:
1. DEFINITIONS
A)" "Average Wholesale Price" ("AWP") is the then current price for a prescription
drug as listed in a pharmaceutical industry pricing guide of Rx Direct's choice, including
but not limited to the Medi-Span Prescription Pricing Guide, including supplements based
on units of 100 for tablets and capsules, pints for liquids and actual package size for all
other items.
B) "Co-Payment" ("Co-Payment") shall mean that portion of the cost of the
prescription paid directly by a Participant, the amount of which is set forth in Paragraph 5
of this Agreement.
C) "Dispensing Fee" ("Dispensing Fee") shall mean the amount payable by the
Sponsor for each prescription dispensed by Rx Direct to a Participant, the amount of
which is set forth in Paragraph 5 of this Agreement.
D) "Mail" shall mean to deliver to the United States Post Office for first class delivery
in a properly addressed envelope or package, with sufficient postage paid or to United
Parcel Service or similar cartier selected by Rx Direct in its sole discretion.
E) "Participants" ("Participants") shall mean those individuals whose names are
included on a list of Participants furnished to Rx Direct by the Sponsor in a mutually
agreeable form.
F) "Prescription" or "prescription order" shall mean a valid and legal order to
dispense a prescription drug under all applicable statutes and regulations of the United
States, (including the Food and Drug Administration) and the state and loca1jurisdiction in
which the dispensing facility is located, such order being authorized by a person legally
qualified to do so. Such terms shall not include (i) appliances, deviceS; " bandages, heat
lamps, braces, splints, artificial appliances, heahh and beauty aids, cosmetics, dietary
supplements, injectables, (ii) drugs required by law to be labeled: "Caution - Limited by
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EXHIBIT A
Federal law to Investigational Use" and (ill) experimental drugs not approved by the Food
and Drug Administration.
G) "Prescription drug or medication" shall mean drugs and biologicals which can be
dispensed only pursuant to a prescription order and which, by law, are required to bear the
legend "Caution - Federal Law Prohibits Dispensing Without Prescription".
H) "Generic Drug" means the chemical and generic name as determined by the United
States Adopted Names Council (USANC) and accepted by the Federal Food and Drug
Administration (FDA), of those drug products having the same active ingredients as a
drug product prescn'bed by its trade or brand name.
2. RX DIRECTS SERVICES
Rx Direct shaIl dispense prescription drugs to Participants in accordance with this
Services Agreement and any written directions provided to Rx Direct by the Sponsor,
provided that such written directions from the Sponsor do not conflict with the
agreements set forth herein. If such written directions conflict with this Services
Agreement, then such written directions must be agreed to in writing by both the Sponsor
and Rx Direct.
3. RX DIRECTS UNDERTAKINGS
A) Rx Direct shaIl operate a mail order pharmacy in accordance with all applicable
statutes and regulations of the jurisdiction in which the dispensing facility is located and
shall dispense only those prescriptions written and complying with applicable legal
requirements.
B) Rx Direct shall dispense prescription drugs to Participants in accordance with this
agreement and any written direction, which shall be provided to Rx Direct by the Sponsor.
C) Rx Direct shall dispense a new or refill a prescription upon receipt of a valid
prescription or refill order for any Participant and shall deposit the filled prescription in the
. mail in an envelope, with postage prepaid, properly addressed to Participant's address as
last provided to Rx Direct by Sponsor or as appearing on the face of the order form. Rx
Direct shall not be liable for any delay in delivery, either to the Sponsor or Participant.
D) Rx Direct shall dispense drugs in quantities up to a 100-day supply, subject to
limitations imposed on controlled substances and to limitations specified in the
prescription.
E) Rx Direct will fill new and refill prescription using generic drugs as provided by
law, unless a specific brand-name drug is requested by Participant.
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F) Rx Direct shall maintain required information ("profiles") on all Participants,
beginning with the first prescription received for each Participant. Such profiles shall
include, but shan not be limited to, a history of all drugs dispensed for a period to coincide
with the then current term of this Agreement, drug interaction and allergy information as
provided to Rx Direct by the participant at the time the first prescription is filled or at any
time thereafter, and any other information deemed important by Rx Direct or mutually
agreed upon by the Sponsor. Rx Direct shall keep records of all prescriptions filled for
Participants for five (5) years after the date of filling such prescriptions or such a longer
period as may be required by Federal or State law.
G) Rx Direct shall provide management reports to the Sponsor pertaining to the
services provided under this Agreement in a form and at intervals to be mutually agreed
upon liy Rx Direct and the Sponsor. Rx Direct shall not be required to furnish any
information to Sponsor which violates the Participant's right to privacy with regard to the
types of drugs being dispensed to any individual participant. Rx Direct will not be
responsible for furnishing such information unless they have a waiver and release form
signed by the Participant in question authorizing release of such information to the
Sponsor.
4. SPONSOR'S UNDERTAKINGS
A) Sponsor shall make every reasonable effort to promote the use ofRx Direct's mail
order pharmacy service by Participants.
B) Sponsor shall furnish Rx Direct a list of the names, identification numbers,
addresses, telephone numbers, or other information regarding Participants. as mutually
agreed upon by Rx Direct and the Sponsor. Such list shall be revised by the Sponsor as
often as necessary, in the Sponsor's sole discretion, to maintain it in a current status.
C) Sponsor shall permit Rx Direct to meet with and otherwise communicate directly
with prospective Participants concerning the mail order pharmacy service in a reasonable
manner and at various times to be mutually agreed upon by Rx Direct and the Sponsor, in
order to promote the use ofRx Direct's services.
5. PRICE FOR SERVICES
Rx Direct shall dispense prescription drugs to Participants at the following price to the
Sponsor and Participants:
A) The A WP at the time a prescription is filled, less 9% for brand names and less 25%
for generic drugs; plus
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B) Any notices required under the terms of this Agreement shall be effective if in
writing and delivered by hand (against receipt) or delivered by certified mail, return receipt
requested, to the other party at the address shown above.
C) Sponsor shall have access, at reasonable intervals and during normal business
hours, to the records of Rx Direct relating to Participants for the purpose of ex.mining
records pertaining to the service rendered by Rx Direct to either the Sponsor or
Participants hereunder. Rx Direct, however, shall not be required to violate Participant's
right to privacy with regard to the provision of this contract and shall not be required to
:furnish records that would violate such Participant's right to privacy unlesS Rx Direct has a
signed waiver or release to release such information to Sponsor.
8. DURATION
This Agreement shall terminate 12 months from the effective date hereof It shall be
renewed automatically, however, for additional periods of 12 months, provided that
neither party notifies the other at least 60 days prior to end of the period that it wishes to
terminate. In the event either party so notifies the other, termination shall be effective the
end of the then current period.
9. FORCE MAJEURE
Rx Direct shall not be liable for any fililure or delay in performing all or part of its
obligations under the terms of this Agreement resuJting form unavailability of
pharmaceuticals, war acts of any person engaged in a subversive activity, sabotage, riot,
strikes, slow-downs, lock-outs, or labor stoppage freight embargoes, fireS; explosions,
flood, earthquake or other acts of God, or by-reason of the judgment, filing order of any
court or agency of competent jurisdiction occurring subsequent to the signing of this
Agreement, or any other circumstances beyond its control
10. INDEMNIFICATION
Sponsor and its officers and employees shall not be liable for any claim, injury, demand
or judgment based on tort or other grounds ( including warranty of merchantability),
arising out of the sale, compounding, dispensing, manufacturing or use of any prescription
drug dispensed to a Participant pursuant to this Agreement. Rx Direct hereby agrees to
hold Sponsor harmless against any and all such liability, provided that:
A) the action arises form Rx Direct's fiIilure to discharge a respOllSlbility under the
terms of the Agreement;
B) reasonable notice is given by the Sponsor to Rx Direct; and
s
C) the Sponsor does not diminish Rx Direct's ability to defend or settle an action due
to any act or fitilure to act of the Sponsor; and
D) the action does not result form the intentional or negligent act or omission of
Sponsor.
11. ASSIGNMENT
This Agre,ement shall be binding upon the parties hereto, their successors, and assigns.
Neither party may assign any of its rights or delegate any of its duties hereunder unless
prior written consent is obtained from the other party.
12. . ENTIRE AGREEMENT
This Agreement sets forth the entire understanding of the parties hereto with respect
to mail order pharmacy services and supersedes all prior and contemporaneous
agreements, understandings, negotiations and discussions, either oral or written. There
are no warranties, representations and/or agreements among the parties concerning the
subject herein except as set forth. This Agreement shall not be amended or modified
except in writing.
13. GOVERNING LAW
This Agreement shall be governed by the laws of the State of Texas.
14. SURVIVAL
Should any part, term or condition of the Agreement be declared illegal or
unenforceable or in conflict with any other laws, the rem~inin g provisions shall be valid
and not affected thereby.
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15. AUTHORIZATION
By executing the Agreement, the undersigned individuals hereby warrant and represent
that they have read this Agreement in its entirety, both agree to all its terms, and are duly
authorized to execute this Agreement on behalf of their respective parties.
RX DIfECT: INC.
By' D~~
. GERR TEA
PRESIDENT
CITY OF PARIS
By: LG;.~,~
GENE ANDERSON
CITY AUDITOR
Date:
<g-lf-Cf<{
Date:
8-'f-'t'f
7
X-
X-
L
L ~_
X-
X
DRUG COVERAGE OPTIONS
Client: CITY OF PARIS
Yes - Covered Drug
No - Not a Covered Drug
YES NO
-1..
LEGEND DRUGS (pRESCRIPTION DRUG)
ANABOLIC STEROIDS USED FOR BODY BUILDING
ANOREXlANTS (DIET AIDS)
ANTI-REJECTION DRUGS
ANTI-SMOKING AIDS (GUMSIPATCHES)
DRUGS USED TO TREAT AIDS AND AIDS RELATED CONDITIONS
DRUGS USED TO TREAT OR CURE BALDNESS
FERTILITY AGENTS
GROWI'H HORMONES
x..
INJECT ABLE DRUGS
INSULIN
INSULIN SYRINGES & NEEDLES
INSULIN IN COMBINATION WITH NEEDLES/SYRINGES (pRE-DRAWN)
INSULIN TEST STRIPS
LEGEND CONTRACEPTIVES (ORAL)
TRETINOIN PRODUcrS (RETIN-A) UP TO AGE ~
X-
L
X
vrr AMlNS REQUIRING A PRESCRIPTION
L
X.
.Y
.Y
'X
J
THE FOLLOWING ITEMS ARE FOR DOCUMENTATION ONLY:
THERAPEUTIC DEVICES OR APPLIANCES, INCLUDING HYPODERMIC
NEEDLES, SYRINGES, SUPPORT GARMENTS, AND OTHER NON-MEDICINAL
SUBSTANCES REGARDLESS OF INTENDED USE.
IMMUNIZATION AGENTS, BIOLOGICAL SERA, BLOOD OR BLOOD
PRODUCTS ADMINISI'ERED ON AN Our-PATIENT BASIS.
ANY CHARGE FOR THE ADMINISTRATION OF LEGEND DRUGS OR INSULIN.
ANY PRESCRIPTION REFILLED IN EXCESS OF THE NUMBER SPECIFIED BY
THE PHYSICIAN, OR FOR ANY REFILL DISPENSED AFTER ONE YEAR FROM
THE PHYSICIAN'S ORIGIN~ ORDER
ANY MEDICINE. LEGEND OR NOT, WHICH IS CONSUMED OR
ADMINISTERED AT THE PLACE WHERE IT IS DISPENSED.
DRUGS COVERED UNDER WORKERS COMPENSATION, MEDICARE OR MEDICAID
PROGRAMS.
NOTE: 1"0''''_ ~D"'I__ ___or.......0_1...-..... __Ia ..._olT.....
x
x
x
x
x
x