HHS Secretary Tommy G. Thompson today announced the approval of innovative projects in Minnesota and Georgia designed to make prescription drugs less costly and more readily available to safety-net patients.  The projects involve groups of community health centers that will buy and distribute prescription medications to their patients at reduced costs.

In the first project, three health centers in Minneapolis-St. Paul – Southside Community Health Services, West Side Community Health Services and Model Cities Health Center – have joined forces to create a prescription drug purchasing and distribution system called the Neighborhood Pharmaceutical Care Network.  The network will provide less expensive prescriptions for the centers’ more than 13,000 uninsured patients.

In the second project, in the Columbus, Ga., area, The Medical Center – a local safety-net hospital – and two health centers – the Community Health Center of South Columbus and Stewart Webster Rural Health of Richland, Ga. – have formed the Columbus Regional Community Healthcare Network.  As in Minneapolis, the Columbus network will buy and distribute much needed prescription medications to health center patients at a lower cost.

“These projects in the Twin Cities and in Columbus, Ga., reflect our commitment to provide those most in need with access to affordable prescription drugs,” Secretary Thompson said.  “These networks will be able to purchase drugs in larger quantities and pass the savings on to the people that they serve – many of whom do not have any health coverage.”

The two demonstration projects are part of a new HHS initiative to allow certain health care organizations to take additional steps to reduce administrative costs and make buying prescription drugs easier for patients.  Secretary Thompson announced the initiative in June 2001, and the first two demonstration projects – in Spokane, Wash., and Ticonderoga, N.Y. – were approved in December 2001. 

Participating organizations must be eligible for the drug pricing program established under Section 340B of the Veterans Health Care Act of 1992.  HHS’ Health Resources and Services Administration manages the program.  More information about the alternative method demonstration projects is available at HRSA's Office of Pharmacy Affairs web site.