Montgomery – DMH/MR Commissioner Kathy Sawyer today announced efforts to reduce the spiraling costs for prescription drugs for persons in state and community mental health/retardation programs around the state.

"Something really has to be done," she said. "The percentage of our budget allotted to prescription drug purchases continues growing at an extraordinary rate, but it would be foolish and irresponsible to cut-back on drug purchases when medications often mean the difference between a person’s ability to live independently or remain hospitalized.

Sawyer anticipates that her agency will spend $25 million on prescription drugs this fiscal year. Of that amount, $11.5 to $12 million is expended on the indigent drug program (IDP), which purchases drugs for people receiving community-based services who, otherwise, could not afford their medications. The remaining amount funds medications for people served in state psychiatric facilities and developmental centers. "This year’s costs reflect a 25 percent increase over last year, and we’re anticipating the same or higher percentage increases in the future," said Ross Hart, the agency’s Associate Commissioner for Administration.

Hart explained that the efforts to curb costs began with a thorough review of currently administered medications by the department and community providers coupled with presentations from major manufacturers and distributors. As a result, "we have contracted with the Mercer Company out of Atlanta, Georgia, which has proven experience and expertise in reducing medical and pharmaceutical costs," said Sawyer. In addition, the department will secure the services of Burr and Foreman, a Birmingham law firm with an excellent track record in negotiating cost-saving contracts. "Our understanding is that this firm can ensure that Alabama taxpayers pay no more than they have to for pharmaceutical products, and, at the same time, that consumers and their families have access to the latest, most effective medications," Commissioner Sawyer said.

The department will also implement other management techniques designed to provide drugs to consumers in a cost-effective manner while upholding a high standard of quality. "We will be developing an information system that will allow all community mental health programs and the department to maintain a perpetual inventory, calculate needed orders and ensure timely purchases and deliveries," Sawyer said.

"Overall, this is a management initiative designed to contain costs and to live within the budget appropriated by the legislature and approved by the governor," Sawyer said. "However, psychotropic medications are vital to the mission of this department and to each consumer’s ability to gain independence and a contributing role in society. We will never lose sight of that fact."