Prisons: medical supplies: demonstration contracts.

Existing law authorizes the Secretary of the Department of Corrections and Rehabilitation to adopt regulations requiring the manufacturers of drugs to pay the department a rebate for the purchase of drugs for offenders in state custody that is equal to the rebate that would be applicable under the federal Social Security Act. Existing law also allows the department to establish cost-effective strategies for the procurement of drugs in cooperation with the Department of General Services. This bill would authorize the department to enter into demonstration contracts with manufacturers of medical supplies for the purpose of establishing rebate programs or other cost-saving mechanisms and achieving demonstrated cost savings in the purchase of medical supplies. The bill would require the department to maintain a list of supplies for which contracts have been executed pursuant to these provisions.